USDA (United States Department of Agriculture) loans are another way for homebuyers to purchase homes with no down payment.  USDA loans are intended for the development of rural areas and are available for single and multi-family residences. Loans can be used to: purchase an existing home, build a new home, and rehab a home in need of repairs.

Since the major component of a USDA loan is location, not all properties will qualify.  Qualifications are quite lenient for buyers making it more likely you will qualify for a loan, but the home won’t.  Remember, the home must be in a rural location and that definition pushes properties farther away from cities than ever before.  Without general areas for funding, street addresses are used to determine acceptable homes*

Program Highlights:

No down payment (100% financing)

No first-time homebuyer restrictions

Competitive interest rates

Home must be owner occupied

Buyer must meet income eligibility requirements

Property must meet location requirement

Can be used for single and multi-family homes


*So how far must you go? 

From what I can tell, “some” homes in San Tan Valley, Casa Grande and Maricopa may be eligible when considering locations closest to the East Valley cities of Mesa and Chandler.


AZ USDA Rural Development for further investigation – but of course it’s easiest to Contact a Local Lender adding USDA to the subject line.

Additional Links:

Home in 5

Arizona Home Financing

Pathway to Purchase

AZ Rent to Own Homes



Arbor Realty


Karen Peyton, Associate Broker

"Because someday begins today."