USDA Rural Housing Loans
A USDA Guaranteed Loan is a government-insured, 100% financed program that requires no down payment. This is a 30-year, fixed rate mortgage and eligibility is based on total family income (income limits depending on family size), property location (must be within a USDA designated rural area) and price of the home.
Features of a USDA Rural Housing Loan
While this type of loan does not require a down payment, it does have an upfront fee of 1% of the loan amount which can be paid in cash by the buyer or seller, but is most often financed into the loan.
It does require a monthly mortgage insurance payment (calculated on a 0.35% annual fee), based on the remaining principal balance. This payment continues for the life of the loan.
USDA mortgage insurance rates are lower than those for comparable FHA loans or conventional mortgages. FHA mortgage insurance premiums assess a 1.75% upfront mortgage insurance premium and charge as much as 0.85% in MIP annually. Conventional mortgage insurance premiums can be as much as 1.65%.
Even better, USDA mortgage rates are often the lowest among FHA mortgage rates, VA mortgage rates, and conventional loan mortgage rates.
First Nations works with USDA government loans every day. Call today to learn more.