Steve and Lisa's Mortgage Morsels

How Do I Check If My Home is USDA/Rural Housing-eligible?

July 6th, 2012 9:11 AM by Steve Iltis

 

Generally properties east of I-75 are eligible. To find out more please call ILG at 941-954-4252 or visit http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do



What is the USDA program’s minimum down payment?

The USDA has no down payment requirement. You can finance 100% with a USDA loan.

Is the USDA loan program limited to first-time buyers?

No, the USDA Rural Housing Program can be used by first-time buyers and repeat buyers.

Can I finance the Upfront Mortgage Insurance into my mortgage?

Yes, the USDA will let you finance your Upfront Mortgage insurance payment into your loan. For example, if you bought a home for $100,000 and borrowed the full $100,000, your Upfront Mortgage insurance would be $2,000. You could then raise your loan size to $102,000.

What mortgage products are available with a USDA mortgage?

The USDA/Rural Housing Program offers 30-year fixed rate mortgages only. There is no 15-year fixed rate mortgage. There are no adjustable-rate mortgages. 30-year fixed only.

I can’t afford closing costs. Can I get a gift for my closing costs?

Yes, USDA loans allow gifts from family members and non-family members. You will need a gift letter to accompany your loan application. Your loan officer can give you one.

I negotiated to have the seller pay my closing costs. Is that allowed?

Yes, the USDA Rural Housing Program allows sellers to pay closing costs for buyers. These costs can include state and local government fees, lender costs, title charges, and any number of home and pest inspections.

Check back next week for more Q & A about the USDA Rural housing Program.

Posted in:General
Posted by Steve Iltis on July 6th, 2012 9:11 AM

Archives:

My Favorite Blogs:

Sites That Link to This Blog: