In the event that you have a USDA loan in your pipeline or are writing up an offer using USDA for your financing type, please take note of the critical dates that may impact on-time closings in the USDA updates … Continue reading →
Riding on the coattails of a previous blog posting, regarding what ultimately determines mortgage interest rates, many prospective borrowers may also be surprised to learn that up to eleven different variables may affect the final interest rate they receive. While … Continue reading →
While most people think of the US Department of Agriculture as a Federal agency that works with farmers or stamps meat, there is a home loan program under the umbrella of the USDA otherwise known as Single Family Housing Guaranteed Loan Program.
The main objective of this mortgage program is to provide affordable zero down financing for moderate income families in “rural” areas or areas of low population density.
Key notes of this program:
There are defined income limits by household size
The purchase price limit is the conforming loan limit in your area
There is no down payment required although you may put money down if you so choose
You can negotiate for the Seller to pay all of your closing costs
There is both an upfront guaranty fee paid to USDA as well as a monthly guarantee fee which is much lower than a mortgage insurance premium would be
The home itself may be single family, an approved condo, townhome or new construction
The home and property may not be “income producing” or be deemed to have that potential which brings about a whole host of other criteria
No barns or significant outbuildings
Not in a flood zone
No manufactured homes
Not on a historic register
1 power meter only
If your household income meets the requirements and the home is located in an eligible area, this is one of the best mortgage programs available today! Great 30-year fixed interest rates and it is not limited to first time homebuyers!
Give me a call today to identify whether you may qualify for this great program!
Consumers have several choices when it comes to obtaining a mortgage loan. Generally speaking, the three main sources of obtaining a mortgage loan are Banks and Credit Unions, Mortgage Bankers and Mortgage Brokers (although the number of mortgage brokers has … Continue reading →
The single family housing guaranteed loan program referenced as “USDA”, has certain property restrictions that are often a surprise to the average Borrower planning on financing their home with a USDA loan. With a fundamental objective to “finance a residence … Continue reading →