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).

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.

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No credit score requirement; applicants must demonstrate willingness and ability to manage debt. Residency requirement: Property must be located in a USDA-eligible rural area of Arizona (verify via USDA Eligibility Site). Citizenship or immigration status: U.S. citizen, U.S. non-citizen national, or qualified alien. Household income cannot exceed 115% of area median income (by household size, by county). Borrower must occupy the dwelling as a primary residence and be a U.S. citizen, U.S. non-citizen national, or qualified alien. Property must be in a USDA-eligible rural area and cannot be income-producing. 100% financing; closing costs may be financed where value supports.

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.

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.

USDA Single Family Housing Guaranteed Loan Program (Section 502 Guaranteed) - Arizona serves homebuyers purchasing anywhere in Arizona. The program targets specific areas: Available only in USDA-designated eligible rural areas of Arizona.

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. Funds are reserved through Applications accepted on an ongoing basis October 1 - September 30 through approved lenders. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.