USDA Loans in Tucson, AZ: Zero Down Home Financing for Rural Arizona Buyers
As a trusted mortgage broker in Tucson, Arizona, we help local families achieve affordable homeownership through specialized programs like USDA loans. Backed by the U.S. Department of Agriculture, USDA home loans offer zero down payment and low interest rates to eligible buyers in designated rural and suburban areas of Pima County and Southern Arizona.
What Is a USDA Loan in Arizona?
A USDA loan is a government-backed mortgage program aimed at helping low- to moderate-income borrowers purchase homes in eligible rural and suburban areas. In Southern Arizona—including parts of Pima, Pinal, and Cochise Counties—many communities just outside Tucson city limits qualify for this zero-down loan option.
This program is ideal for first-time homebuyers, families, and anyone seeking a budget-friendly path to homeownership without needing a large down payment.
Benefits of USDA Loans for Tucson Area Buyers
No Down Payment
Finance up to 100% of the home's purchase price—ideal for buyers without savings for a down payment.
Lower Interest Rates
USDA loans often offer below-market interest rates thanks to federal backing.
Lower Mortgage Insurance Costs
Compared to FHA loans, USDA loans offer reduced monthly mortgage insurance, helping lower your total payment.
Flexible Credit Qualifications
A minimum credit score of 640 is typically required, but alternative credit options may be available.
USDA Loan Eligibility in Tucson and Surrounding Communities
The home must be located in a USDA-eligible area. In Pima County, qualifying zones include:
- Vail
- Sahuarita
- Marana (certain areas)
- Green Valley
- Parts of Rita Ranch and Red Rock
Use the USDA Eligibility Map to confirm an address.
Your household income must not exceed 115% of the median income for the area. As of 2025, the general limit for a 1–4 person household in most of Arizona is around $110,650, but varies by county and family size.
The loan must be used for a primary residence—investment properties and second homes are ineligible.
1. USDA Guaranteed Loan
Offered through local lenders (like us), these are the most common and available to moderate-income borrowers.
2. USDA Direct Loan
Offered directly through the USDA for very low-income buyers. These loans include payment assistance and are limited in availability.