Thinking about apply for one the government backed USDA Loans? The following are a few highlights of the USDA Guaranteed Rural Housing Loan Program:
- USDA Loan Value: Loans may be for up to 100 percent (102 percent if the guarantee fee is included in the loan) of appraised value or for the acquisition
- Benefits: No down payment; Mortgages are 30-year fixed rate at market interest rates
- Closing Costs and Legal Fees: Loans may include funds for closing costs, the guarantee fee, legal fees, title services, cost of establishing an escrow account and other prepaid items, if the appraised value is higher than sales price
- Application Process: Home buyers make USDA Loan applications with participating lenders
- Living Restrictions: Buyers must personally occupy the dwelling following the purchase
- Loan Fees: For purchase loans, a one-time guarantee fee equal to 2.0 percent of the loan amount is charged to the lender. The charge for refinance loans is 0.5 percent. Typically, the lender passes on this expense to the borrower as a closing cost. After the one-time fee is paid, there is no recurring monthly expense charged for guaranteeing the loan
Never assume that you do not qualify for a USDA Home Loan. Instead, contact the experts at the USDA Loan Agency. Our certified loan agents will quickly identify your needs, and offer you the type of expert advice you deserve.