The USDA Rural Guaranteed loan program, designed to assist low-income buyers as well as buyers purchasing in rural areas, offers 100 percent financing into a 30-year fixed-rate loan. The program itself is about seven years old but it was never utilized due to other unique products that have been available.
“This is just an unbelievable program,” said Mike Morgan, senior loan consultant for Peoples Mortgage Company. “First time home buyers wanting to buy right now have an incredible opportunity.”
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“Pretty much anything north of Tangerine Road and anything south of the Nogales Old Vail Connection Road qualifies,” Morgan said. “So Vail, Marana and Sahuarita all qualify.”
To financially qualify for the program, a households of up to four cannot have total income exceeding $73,600 per year. If there are five or more people, the top limit is $97,150.
“That includes children who are working,” said Dick Dunbar of Peoples Mortgage. “I had a situation where the woman qualified, but her son who was 22, was still living at home and working. It put the total household income above the level acceptable for the program. Typically that wouldn’t be included as household income, because he isn’t buying the house, but with this program it is.”
If the value of the home exceeds the purchase price, the buyer has the option of wrapping some or all of the closing costs into the loan as well.
Because of its history of not being widely known, Peoples Mortgage is working to educate real estate agents about the program.
“Many are very surprised to find out that homes they have listed qualify for this program,” Morgan said. “It is something that will help them sell the home.”
While there has been criticism of 100 percent financing programs, Dunbar rejects the idea that all of them are bad.
“The problem was that the guidelines for approving such loans were treated as just that, guidelines,” he said. “The guidelines are now rules. And everything is required to be looked at very carefully. And with this program, once we do a review, they conduct a second review before approval is given.”
He also said there are options and deductibles if someone is over the limit financially.
“Each situation has to be examined carefully,” Dunbar said.
KB goes all Energy Star
KB Home says it is now building all of its homes in Arizona to Energy Star guideline standards, which it says are as much as 45 percent more energy-efficient than homes built 10 years ago.
Mark Rodocker, executive vice president of KB Home’s in Arizona, said homebuyers in the Tucson area want homes that are energy-efficient, environmentally friendly, and affordable – both at the time of purchase and over the lifetime of operating the home. He said it’s particularly relevant this time of the year with the summer heat.
To be designated as an Energy Star qualified home, a third party must verify the home meets a set of requirements developed by the Environmental Protection Agency (EPA).
Among the standards being used in KB Home homes are tight duct work and insulation meeting the EPA’s thermal bypass checklist, Low-E (low emissivity) glass, and 13 SEER (Seasonal Energy Efficiency Ratio) central air conditioning units.
Senior center breaks ground
Indevco Construction Inc. broke ground this month on The Villas at Academy Village, an assisted senior living center at 13701 Old Spanish Trail.
The finished product will be a concept that strives to de-institutionalize assisted home living and promote better overall wellness and quality of life.
The 8,832 square-foot center has 12 bedrooms, including two suites and is designed to achieve LEED silver certification. Amenities include a high-use of natural light, a full commercial kitchen, and accessible and innovative bathrooms.
Worth noting
• Prestige Fitness leased 4,200 square feet at 4490 N. First Ave. from Larsen Baker. The facility will be used as a fitness center and for the sale of related products and services. It is scheduled to open in September. Andy Seleznov with Larsen Baker represented the landlord while Ron Zimmerman of Bourn Partners represented the tenant.
• The Dawg House LLC leased 4,000 square feet of commercial/industrial space at 2201 N. Stone Ave. from Hurford and Company. The Dawg House provides services including dog day care, bathing and grooming, and a kennel. Ron Zimmerman of Bourn Partners LLC represented the landlord. Craig Dorshkind of Tucson Industrial Realty represented the tenant.
• M&M Truck Boutique leased 3,237 square feet at Midstar Plaza, 4500 E. Broadway, from Midstar Partners LLC. The company offers specialty wheel rims, tires, vehicle grills and other auto accessories. This is its second Tucson location. Nancy McClure of CB Richard Ellis represented the landlord.
• Blockbuster Video renewed a lease of 3,002 square feet for an additional four years at, 4784 E. Sunrise Drive in Sunrise Village Shopping Center from Sunrise Village Investors LLC. David Hammack of Volk Company Commercial Real Estate handled the renewal for the landlord.
• Dental Village leased 2,820 square feet in Tucson Spectrum at the southwest corner of Interstate 19 and Irvington Road from Barclay Creswin Retail LLC. This will be Dental Village’s sixth Southern Arizona location. David Hammack of Volk Company Commercial Real Estate represented the tenant.
E-mail items for this column to jpangburn@azbiz.com. Real Estate and Construction appears weekly.
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