USDA Eligible Property Arizona

Updated USDA Eligible Property

Updated USDA Eligible Property

Get ready for a change relative to what is considered a USDA eligible property in Arizona!  Rural Development (the folks that manage regulation for the USDA home loan program) issued what is called an “Administrative Notice” or “AN” giving instructions on what the new USDA eligible property areas will look like.  You can read a copy of it by following this link: Administrative Notice (AN) 4711 (see below for link to new eligibility map).

Changing the USDA eligible property grid is an extremely significant announcement.  A USDA loan can only be used to finance a property if the borrower qualifies AND the property is considered a USDA eligible property.  USDA determines which properties are eligible based on the population of a given area.  The program is designed to provide a special Arizona mortgage option for those buying in rural/outlying communities.

What Properties Will be USDA Eligible?

Visit the USDA eligible property website to see what properties will be considered eligible after the upcoming change.  Once on this site you will see different USDA eligible property links to the left.  The second link from the top left says “future eligible areas.”  Click on this to see if a property you is within the new eligibility grid.

When is the New USDA Eligible Property Grid Effective?

Based on AN 4711 the new USDA eligible property grid is slated to go live and be in effect on October 1, 2013.  As with many USDA guideline and eligibility changes there is a little ambiguity and uncertainty.   Since USDA is a government backed loan, Congressional Acts can impact the actual adoption and effective date of new guidelines such as the updated USDA eligible property grid.   As of right now, we need to treat all USDA loans based on this property eligibility change.  However it is important to note that Congress may alter the course and implementation date of this change.

Important Deadline

Based on the current October 1, 2013 implementation date any borrower that is looking to finance an Arizona property that is currently in the eligibility grid that is NOT in the “Future Eligibility Grid” needs to have full USDA loan commitment by September 30, 2013.  This is a critical piece of information from a timing standpoint.  USDA commitment is issued AFTER your Arizona lender has full loan approval with their in-house underwriting team.  USDA commitment can take up to 2 weeks (after submitting to USDA) depending on USDA’s volume at the time the loan is submitted.  This means that if you are financing a home that is NOT on the future eligibility grid your Arizona loan officer should have full approval AND have your loan submitted to USDA by Friday September 13th, 2013 to play it safe.

If you have any questions about Future USDA eligible property changes please call or email.

By Jeremy House


  1. Randy Hooker says:

    Do you know if USDA has any plans to post a definitive, accurate, user-friendly map? Or are we just supposed to enter individual addresses on their site?

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