Arizona loan guide • October 2026
USDA Loans in Arizona: 100% Financing for Rural Home Buyers
USDA loans give buyers in eligible rural areas 100% financing, so you can buy with no down payment. This guide explains the USDA rural loan rules, the 2026 Arizona income limits, how to read the official USDA eligibility map, and which Arizona towns sit outside the ineligible areas. Every figure links to an official source.
USDA loans key facts
- The USDA guaranteed loan offers 100% financing, with no down payment, on a primary residence in an eligible rural area (USDA Rural Development).
- Household income cannot exceed 115% of the area median income (USDA Rural Development).
- FY2026 income limits for a household of 1 to 4: $129,250 in Maricopa and Pinal counties, $128,800 in Coconino County and $122,800 elsewhere in Arizona (USDA RD).
- The only term is a 30-year fixed rate (USDA Rural Development).
- FY2027 guarantee fees: 1.00% upfront and 0.35% annual (USDA RD, Sept. 16, 2026).
- Eligibility is set by address on the official USDA map, not by city name.
Find a home that qualifies for USDA loans
Tell us the town you want and the home type. A dedicated full-time local agent will reach out, and we can connect you with a loan officer if you want one.
What USDA loans are and who they help
The USDA Single Family Housing Guaranteed Loan Program is run by USDA Rural Development. Approved loan officers originate the loan, and USDA guarantees it. That guarantee is why USDA loans can cover the full price of a home in an eligible rural area.
The USDA Rural Development program page lists the core rules. Your household income cannot exceed 115% of the area median. The home must be your primary residence. You must be a U.S. citizen, a U.S. non-citizen national or a qualified alien. The only loan term is a 30-year fixed rate, so your principal and interest payment never changes.
“Rural” in USDA terms is broader than many buyers expect. Many towns across Arizona sit outside the ineligible areas on the official map, including places near larger cities.
USDA loans income limits in Arizona for 2026
The income limit is based on household size and county. These are the moderate-income limits for the guaranteed program from the USDA RD income limit table, effective July 13, 2026.
| Arizona area | Household of 1 to 4 | Household of 5 to 8 |
|---|---|---|
| Maricopa and Pinal counties | $129,250 | $170,650 |
| Coconino County | $128,800 | $170,050 |
| All other Arizona counties | $122,800 | $162,100 |
For households larger than 8, USDA adds 8% of the 4-person limit for each extra person. Your loan officer runs the official household income calculation, which can differ from your gross pay, so treat these figures as a first screen.
How to check a USDA rural loan address on the official map
Property eligibility is decided address by address. Use the official USDA RD property eligibility map, type in the full street address, and the tool tells you whether that property is in an eligible area. Areas shaded on the map are ineligible. Everything outside the shading is eligible for a USDA rural loan, subject to the other program rules.
Check every address, even inside a town you think qualifies. Boundaries can cut through a town, and USDA reviews its maps over time. Your loan officer will confirm eligibility again when you apply.
Arizona towns outside the USDA loans ineligible areas
On October 16, 2026, we checked the Census Bureau center point of every incorporated Arizona city and town against the official USDA RD ineligible-area map layer. The center points of these towns fell outside the shaded ineligible areas. This is a starting list, not a guarantee: eligibility is set by each property address, and parts of a town can differ.
- Benson
- Bisbee
- Camp Verde
- Chino Valley
- Clarkdale
- Clifton
- Colorado City
- Coolidge
- Cottonwood
- Dewey-Humboldt
- Douglas
- Duncan
- Eagar
- Eloy
- Florence
- Fredonia
- Gila Bend
- Globe
- Guadalupe
- Hayden
- Holbrook
- Huachuca City
- Jerome
- Kearny
- Kingman
- Mammoth
- Miami
- Nogales
- Page
- Parker
- Patagonia
- Payson
- Pima
- Pinetop-Lakeside
- Quartzsite
- Safford
- San Luis
- Sedona
- Show Low
- Snowflake
- Somerton
- Springerville
- St. Johns
- Star Valley
- Superior
- Taylor
- Thatcher
- Tombstone
- Tusayan
- Wellton
- Wickenburg
- Willcox
- Williams
- Winkelman
- Winslow
The center points of the larger metro cities, including Phoenix, Mesa, Tucson, Flagstaff, Prescott, Yuma, Casa Grande, Maricopa, Queen Creek and San Tan Valley, fell inside the ineligible areas. Some addresses on the edges of those areas may still qualify, so always check the map.
USDA loans fees, payment and closing costs
USDA charges a guarantee fee instead of private mortgage insurance. For fiscal year 2027, which began October 1, 2026, the USDA RD fee notice keeps the upfront fee at 1.00% of the loan and the annual fee at 0.35%. Ask your loan officer how each fee will appear in your loan estimate.
The loan covers the purchase price, but you still have closing costs, prepaid taxes and insurance. Those can often be paid by a seller credit, gift funds or an Arizona down payment assistance program. Ask your loan officer how much cash to close you will need on the specific home.
USDA loans cost compared with FHA and conventional
Here is simple math on a $300,000 example price, using the published program rates. It is an illustration, not a loan quote, and it leaves out interest, taxes, insurance and closing costs.
| USDA loans example on $300,000 | Down payment | Upfront fee | Annual fee, first year |
|---|---|---|---|
| USDA guaranteed | No down payment | $3,000 (1.00%)* | $1,050 (0.35%) |
| FHA | $10,500 | $5,066.25 (1.75% of $289,500) | about $1,592 (0.55%) |
| Conventional (3% down) | $9,000 | None set by the program | Varies by loan program and credit |
From our experience
*The USDA upfront guarantee fee can be paid by the seller as a seller concession, so a USDA buyer can truly put 0% down out of pocket.
Earnest money can be as little as $250 when you write an offer asking the seller to agree to your USDA 100% financing terms. The amount is negotiable and set in your purchase contract.
Rates come from the USDA RD FY2027 fee notice and HUD Mortgagee Letter 2023-05. The FHA annual figure is an estimate on the starting balance. Ask your loan officer for a Loan Estimate, the standard three-page form the CFPB explains, to compare real offers line by line.
USDA loans and Arizona down payment assistance
The Home Plus program offers up to 4% assistance for down payments and closing costs, available statewide. Its forgivable option is a deferred second mortgage forgiven after 5 years, and at least one borrower completes a homebuyer education course. The program lists an income limit of $155,386, updated April 6, 2026, and says Home Plus is available year-round and does not deplete its funding. Ask a participating loan officer whether Home Plus can be added to your USDA loan.
Because a USDA rural loan already covers the full price, assistance is most useful for closing costs and prepaid items. Seller credits and gift funds can also help, within your loan program’s rules. For more options, see our first-time home buyers guide.
USDA loans by Arizona region
Using the same October 16, 2026 center-point check against the official map, here are towns by region whose centers fell outside the shaded areas. Always confirm the exact address on the USDA eligibility map.
- Pinal County: Florence, Coolidge, Eloy, Kearny, Mammoth and Superior. Income limit: $129,250 for 1 to 4 people.
- Yavapai County: Chino Valley, Camp Verde, Cottonwood, Clarkdale, Dewey-Humboldt and Jerome. Income limit: $122,800 for 1 to 4 people.
- White Mountains and Rim Country: Payson, Show Low, Pinetop-Lakeside, Snowflake and Taylor.
- Southern Arizona: Nogales, Douglas, Bisbee, Willcox and Tombstone.
- Northern Arizona: Williams, Page, Winslow and Tusayan. Coconino County towns use the $128,800 limit.
6 steps to 100% financing with a USDA rural loan
- Screen your income. Compare your household income with the 2026 Arizona limits above.
- Get pre-approved. Ask a USDA-approved loan officer to review your credit, income and debts.
- Pick target towns. Start with the list above, then check each address on the official map.
- Tour homes with a full-time agent. Your agent can flag well, septic and access items that USDA loan officers review.
- Make an offer and request seller credits. Credits can cover closing costs that the loan does not.
- Appraisal, USDA review and closing. USDA reviews the file after your loan officer approves it, so build that time into your contract.
USDA loans compared with FHA and conventional
USDA is the only one of the three major options with no down payment for most buyers. FHA requires 3.5% down with a 580 or higher credit score, and conventional programs such as Fannie Mae HomeReady and Freddie Mac Home Possible start at 3% down. FHA and conventional loans work anywhere, while USDA requires an eligible address and income at or below the limit.
If the home you love sits inside a shaded area, read our FHA loans guide. Buying a factory-built home on land? See the manufactured home mortgage guide. Buying your first home? Start with our first-time home buyers guide.
USDA loans FAQ
Do USDA loans really offer 100% financing?
Yes. The USDA guaranteed loan program offers 100% financing, so no down payment is required on an eligible home. You still need to cover closing costs, which seller credits or gift funds can often pay.
What is the USDA income limit in Maricopa County for 2026?
For the guaranteed program, the FY2026 limit in Maricopa and Pinal counties is $129,250 for a household of 1 to 4 and $170,650 for a household of 5 to 8.
How do I know if an Arizona address qualifies?
Enter the full address on the official USDA RD property eligibility map. Shaded areas are ineligible. Eligibility is decided by address, not by town name.
Is Phoenix eligible for a USDA rural loan?
The center point of Phoenix falls inside the ineligible area on the official USDA map. Some addresses at the edges of metro areas may qualify, so check each one on the map.
What are the USDA fees for 2027?
For fiscal year 2027, USDA keeps the upfront guarantee fee at 1.00% and the annual fee at 0.35%.
Can I get a USDA loan on a second home?
No. The home must be your primary residence.
USDA loans official sources
Last Updated: October 2026. Every figure on this page comes from the official source linked here; we checked each one on October 16, 2026.
- USDA Rural Development, Single Family Housing Guaranteed Loan Program
- USDA RD FY2026 guaranteed income limits (HB-1-3555 Appendix 5, effective July 13, 2026)
- USDA RD FY2027 guarantee fee notice (Sept. 16, 2026)
- USDA RD property eligibility map
- USDA RD ineligible-area map layer (checked Oct. 16, 2026)
- HUD Mortgagee Letter 2026-11 (Oct. 8, 2026), FHA credit score tiers
- Fannie Mae, HomeReady mortgage
- Freddie Mac, Home Possible 3% down
Ready to use USDA loans for 100% financing?
Tell us the town you have in mind. A dedicated full-time local agent will help you find homes at eligible addresses and keep your USDA review on schedule.
Talk with a full-time agent about USDA loans
Tell us the town you want and the home type. A dedicated full-time local agent will reach out, and we can connect you with a loan officer if you want one.
Do you know anyone looking to buy or sell real estate in Arizona? Share our website with them so they are fully informed.
Call Arizona Homes and Condos Realty at (480) 490-4865 or visit ArizonaHomesandCondos.com.