05 · Loan program

USDA.

100% financing for primary residences in USDA-eligible areas. Backed by the U.S. Department of Agriculture. Income-capped, but otherwise generous — and the eligible map is broader than people think (most non-urban Arizona qualifies).

Talk it through Run your numbers

down payment

580+

credit, automated approval

115%

of area median income cap

Figures are program guidelines, not an offer of credit — your rate, APR, and payment depend on your full application. Not a commitment to lend.

Eligibility

More of Arizona qualifies than you’d think.

USDA isn’t just farmland — most non-urban Arizona falls inside an eligible zone. The catch is an income ceiling: your household can’t top about 115% of the area median.

down payment

115%

of area median cap

580+

with automated approval

· The structure

How it's built

Down payment: $0 — 100% financing. You can pay closing costs out of pocket or roll them in via seller credits.
Mortgage insurance: Annual fee (0.35%) plus a one-time upfront guarantee fee (1%). Lower than FHA's MIP.
Loan types: 30-year fixed only. No ARMs, no shorter terms.
Property location: Must be in a USDA-designated area. Most non-urban Arizona qualifies — the map is broader than the name suggests.
Property types: Primary residence only. No investment, no second homes.
Loan size: No single national cap — each county sets a USDA Area Loan Limit, and your qualifying income has to support the payment.

· What you'll need

Qualifying

Credit score: Down to 580 with an automated approval. The automated finding is the only path — there's no manual-underwrite fallback, so a clean file matters.
Debt-to-income: 29/41 are the benchmarks, but automated approvals routinely clear 45–50% with strong compensating factors.
Income limits: Household income can't exceed 115% of area median for the county. In Maricopa County (1–4 person household): around $119,850 in 2026.
Geographic check: Property must fall in a USDA-eligible zone. Drake can check the map in 30 seconds before you make an offer.
Income docs: Two years W-2s, last 30 days pay stubs. Self-employed needs two years of tax returns.
Citizenship: U.S. citizen or eligible non-citizen (permanent resident, qualified alien).

· Straight talk

Not for you if the home sits outside a USDA-eligible zone, or your household income tops ~115% of the area median — both are hard lines, not guidelines.

When a loan I offer isn't right for you, I'll say so — and point you to the one that is.

· Common questions

FAQ

Do I have to live in farmland to use USDA?

No — many suburban areas qualify. The 'rural' label is misleading; the eligible map covers a much wider footprint than people expect.

What's the income limit in Arizona?

Varies by county and household size. Maricopa County is around $119,850 for a 1–4 person household in 2026. Smaller counties have lower caps.

Can I use USDA for a second home or investment?

No — primary residence only. USDA is strictly for the home you'll live in.

How is USDA different from FHA?

USDA is stricter on income and location, but $0 down (vs FHA's 3.5%) and lower mortgage insurance. FHA has no income cap; USDA does.

Can I refinance into USDA?

Yes — USDA-to-USDA streamline refinances are available with minimal documentation. Conventional-to-USDA is also possible if the property and income qualify.

Are seller credits allowed?

Yes — USDA allows seller credits up to 6% of the purchase price to cover closing costs. Often eliminates out-of-pocket cash entirely.

· Questions left?

Ask me directly.

Six quick taps tell you which loan I’d start with, nothing pulled, nothing saved. Or text me and we start there. I read every text myself, usually within minutes during the day. About USDA loans, or anything else.

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