USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona

What is USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona is a first mortgage for homebuyers in Arizona, administered by USDA Rural Development, Rural Housing Service (administered through approved private lenders).

• The USDA Section 502 Guaranteed Loan Program helps approved lenders offer low- and moderate-income Arizona households 100% financing (no money down) to buy, build, rehabilitate, improve, or relocate a home as a primary residence in eligible rural areas. USDA provides a 90% loan note guarantee to lenders to reduce their risk. Loans are 30-year fixed-rate with rates set by the lender, and the program has no minimum credit score requirement (borrowers must show willingness and ability to repay). Applicants apply through USDA-approved lenders.
• Funding comes from Federal - USDA loan note guarantee (Housing Act of 1949 Section 502(h); 7 CFR Part 3555).

Do you have to pay it back?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona is a first mortgage and is repaid under the terms set by USDA Rural Development, Rural Housing Service (administered through approved private lenders).

• The assistance is recorded in First lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona is open to buyers who will live in the home as their primary residence.

What are the income limits?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona limits household income to 115% of the area median income, which varies by county and household size.

• Household income cannot exceed 115% of the area median household income; limits vary by Arizona county and household size (verify on the USDA income-eligibility site).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona caps the purchase price as follows: No set purchase price limit; loan amount based on lender underwriting and appraised value (no set acreage limit).

• Eligible property types include Single-family detached, Attached, Condominium, PUD, Modular, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona serves buyers purchasing anywhere in Arizona.

• The program targets specific areas: Available only in USDA-designated eligible rural areas of Arizona.

How do you apply?

Applications for USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona go through USDA Rural Development, Rural Housing Service (administered through approved private lenders), which publishes the current terms and the application steps on its own site.

1. 1

   Contact USDA Rural Development, Rural Housing Service (administered through approved private lenders) to reserve funds

   Funds are reserved through Applications accepted on an ongoing basis October 1 - September 30 through approved lenders., and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.