If you're buying on the outer edges of the Phoenix metro, in towns like Florence or other smaller Arizona communities, a USDA loan can put you in a home with a true $0 down payment. Howard Funding, based right here in Gilbert, will check your address and income against the program and shop 40+ lenders to get you the sharpest terms.
USDA loans are guaranteed by the U.S. Department of Agriculture through its Rural Development program, and they exist to help people buy homes in less densely populated areas without needing a big down payment. The headline benefit is simple: 100% financing, meaning a true $0 down payment for eligible buyers. Rates are competitive, and instead of traditional private mortgage insurance you pay a modest guarantee fee.
Here's what surprises most Arizona buyers: "rural" doesn't mean the middle of nowhere. Plenty of suburban-feeling neighborhoods on the fringes of the Phoenix metro fall inside USDA-eligible boundaries. The catch in a fast-growing metro like Phoenix is that the eligible line keeps moving outward, so the closest qualifying areas now sit past the suburbs, around Florence and beyond. It's genuinely worth checking the map before you count the program out.
Two main tests decide whether USDA works for you: where the home is and how much your household earns. The property must sit inside a USDA-eligible area and be your primary residence, not a second home or a rental. Eligibility is drawn address by address, so two homes a mile apart can land on opposite sides of the line.
In and around the Phoenix metro, eligible areas now sit well past the suburbs, starting around Florence and extending to many smaller communities across Arizona. Because the metro keeps growing, those boundaries shift over time, so the only reliable answer is to check your specific address. That's a two-minute favor we're happy to do for you.
Important: always verify a home's address on the current USDA eligibility map before you fall in love with it. We'll pull it up with you so there are no surprises.
Two things people always ask about. Here's how they work, no jargon.
USDA is meant for low-to-moderate income households, so there's a cap on how much you can earn and still qualify. The limit isn't one flat number, it varies by county and rises with household size, so a larger family is allowed more income than a single buyer in the same area. Rather than guess, let us run your exact household against the current limit for where you're buying.
USDA doesn't charge traditional mortgage insurance. Instead there's a guarantee fee in two parts: a one-time upfront fee that can be rolled into your loan so you don't pay it in cash, and a smaller annual fee split across your monthly payments. It behaves a lot like mortgage insurance but is generally modest, and it's exactly what lets the program offer no down payment.
A great program for the right buyer, and worth understanding fully before you commit.
From confirming eligibility to closing, here's the path, and we handle the paperwork alongside you.
We check your target address on the USDA map and run your household income against the area limit, before you get attached to a home.
A soft review of your finances confirms your budget and hands you a pre-approval letter that sellers and agents respect.
Howard Funding puts your USDA file in front of 40+ lenders and brings back the best combination of rate and fees.
Our local team gathers documents, orders the appraisal, coordinates the USDA guarantee, and gets you to the keys on schedule.
If your dream home in Queen Creek or Gilbert falls outside the USDA boundary, don't worry, USDA is one of several ways to buy for little or nothing out of pocket. Veterans can use a VA loan for $0 down anywhere. Our zero-down and down-payment-assistance options open more doors, and FHA loans start at just 3.5% down. As an independent mortgage broker, we'll compare every route and point you to the best fit.
This is not a commitment to lend. Rates and terms are subject to change and vary by borrower qualification and property. Not all applicants will qualify. Equal Housing Lender.
It's set address by address, not city by city. As the Valley has grown, the eligible boundary has pushed outward, and much of the East Valley, including Queen Creek and San Tan Valley, is now outside it. The closest qualifying areas today start around Florence and other smaller towns on the edges of the metro. Never assume based on a town's name, we'll check your exact address against the current USDA eligibility map for you.
Yes. For eligible buyers and properties, USDA offers true 100% financing with no down payment required. You'll still have closing costs, but those can sometimes be covered with seller credits or gift funds, and in some cases financed. It's one of the few genuine no-down-payment programs that doesn't require military service.
USDA is designed for low-to-moderate income households, so there are income limits that vary by county and by the number of people in your household. Larger households are allowed more income. Because the limits change and depend on where you're buying, the simplest step is to let us run your specific numbers and confirm you're within range.
Instead of traditional mortgage insurance, USDA charges a guarantee fee. There's an upfront fee, which can be financed into the loan so you don't pay it in cash, and a smaller annual fee that's spread across your monthly payments. It works much like mortgage insurance but is generally modest, and it's what makes the no-down-payment structure possible.
No. USDA loans are only for a primary residence, the home you'll live in. They can't be used for vacation homes, rentals, or investment properties. The home also needs to meet basic condition and location requirements. If you're buying a place to live in an eligible area, though, it can be an excellent fit.
Send us the home you're eyeing and Chance will confirm USDA eligibility and shop your loan across 40+ lenders. Straight answers, fast.