USDA Loan When You Own a Home

Phoenix Arizona USDA Mortgage

USDA financing is an outstanding option for a home buyer looking to purchase a home in Rural Arizona.  The program allows for a 0% down payment and no monthly mortgage insurance.  Typically, USDA guidelines prohibit a buyer from owning any other residential Real Estate.  This can often limit a buyer from using the USDA mortgage program.  I have great news!  Depending on the circumstances, there may be an exception to this rule.

USDA will consider making an exception for a borrower that already owns property as long as the already owned property is NOT within a reasonable commuting distance from the new home being purchased using a USDA mortgage.  Also, if the USDA home loan applicant DOES own a home that IS within commuting distance however the already owned home is not structurally sound or functionally adequate the applicant can be considered eligible for a USDA home loan even though they already own residential real estate.

As your Arizona Mortgage Lender, it is important to me that you understand exactly how a USDA mortgage works.  If you have any questions please contact me today.  You can also APPLY NOW.

You can visit the official USDA website to find out if you or if a particular property is eligible for the program.

By Jeremy House



  1. […] USDA has updated its home eligibility matrix.  They issued an “Administrative Notice” or “AN” showing new USDA eligible property areas. […]

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