July 6th, 2012 9:10 AM by Michael Iltis
If you’ve never heard of the USDA loan program, you’re not alone. It’s a niche product serving a fraction of the U.S. housing market, and most banks don’t offer them.
The program’s full name is the USDA Rural Development Guranteed Housing Loan program. Most people call them “USDA Loans” or “Section 502 loans”. USDA loans are insured by the U.S. Department of Agriculture.
The USDA’s loans biggest feature is it’s 100% financing option.
Effective October 2011
For purchases, 2.00% upfront fee paid at closing, based on the loan size.
For refinances, 1.00% upfront fee paid at closing, based on the loan size
For all loans, 0.30% annual fee, based on the remaining principal balance