USDA Loans are about to get even better
USDA loan are going to get even better beginning on October 1, 2016.
Why?
Because the Upfront Guarantee fee and the Monthly premiums are about to decrease!
This decrease in the USDA Loan guarantee fees will make your monthly payment even more affordable.
Let’s take a look at an example of how the change in the USDA guarantee fee will affect monthly payments
| Current USDA Guarantee Fee Schedule | New USDA Guarantee Fee Schedule |
|
|---|---|---|
| Sales Price | $400,000 | $400,000 |
| Upfront Guarantee Fee | 2.75% $11,000 | 1% $4,000 |
| Total Loan Amount with Financed Upfront fee | $411,000 | $404,000 |
| Monthly Mortgage Insurance Payment | .5% annually $171.25 | .35% annually $117.83 |
As you can see, without taking into consideration any impact of interest rates, your monthly payments will be affected in a positive way under the new USDA Loan Guarantee Fee schedule. Not only will you be financing and making payments on a smaller loan, but your USDA loan will also have a smaller monthly mortgage insurance premium.
USDA Loans continue to be a very attractive options for those that need low down payment programs.
See this previous comparison of loan programs written a year ago when the USDA Home Loan guarantee fee increased.
Let’s do a quick recap of the eligibility criteria for USDA Home Loans
- Owner occupied loans only
- Meet income eligibility guidelines
- Be a US Citizen or permanent resident alien
- Property must be in an eligible area
- Meet underwriting guidelines contact me for specifics
USDA Loans are an excellent choice for those of you who like to live outside of the city and would like to purchase a home with no down payment.
Ready to make your move? Contact me for a free full pre-approval and a referral to a local Realtor
Text USDAINFO to 4422 or complete the form below.
[activecampaign form=112]