If you put less than 20% down on a conventional loan, you pay for Private Mortgage Insurance. The PMI protects the lender should you default on your loan. It makes sense that USDA loans would have mortgage insurance too, right? After all, you can borrow 100% of the home’s value. The USDA doesn’t charge Private Mortgage Insurance, though. Instead, they charge an annual fee. Get Matched with a Lender, Click Here. Keep reading to … [Read more...]
How Does the 3-Day Closing Disclosure Rule Work?
When you apply for a mortgage, you’ll receive a Loan Estimate. As the name suggests, it’s an estimate of how much the loan will cost you. Lenders must send you this document within three days after you apply for the loan. Looking for Current Mortgage Interest Rates? Click Here. Once you get through the underwriting process and are ready to close on your loan, lenders must then send you a Closing Disclosure. This document also has … [Read more...]
Can Seller Pay Closing Costs on USDA loan?
Closing costs can be as much as 5-6% of a home’s purchase price. On a $150,000 loan, you’re looking at as much as $9,000. Even though you don’t need a down payment for the USDA loan, this is still a lot of money. What happens if you don’t have this much? Are you stuck renting for the rest of your life? Luckily, there are options. One way is letting the seller pay the closing costs. Here we will discuss how this may happen. What are … [Read more...]
What USDA Closing Costs Can Sellers Pay?
USDA loans are a great loan for rural homebuyers. Don’t let the term ‘rural’ fool you, though. A large majority of the United States properties are eligible for USDA loans. With no down payment required and flexible guidelines, it’s a great loan for those that don’t qualify for any other type of financing. Get Matched with a Lender, Click Here. Despite the no down payment requirement, USDA loans still have closing costs. All loans … [Read more...]
Allowed Seller Paid Closing Costs on a USDA Loan
Closing costs can add up quickly. Before you know it, you owe more than $5,000 just to close on your loan. For some people, this is not possible. One possibility for help with paying the costs is to get the seller’s help. Oftentimes sellers are willing to help in order to get the approval. If it means they can sell their home, they may be willing to provide financial assistance. This, of course, is as long as they still make a profit on … [Read more...]
Preparing Yourself for a USDA Home Loan
USDA loans are from U.S. Department of Agriculture for rural housing development. This 100% financing loan is for below-average home buyers. The interest rate and mortgage insurance premium are less compared to the current market. People from rural and suburban areas are eligible for the loan. One of the main advantages of this loan is there is no down money. Though it is for the rural and suburban people but geographically 97% of … [Read more...]
Typical USDA Loan Closing Costs
You have to pay closing costs on almost every mortgage you take out, unless you are able to negotiate a no-closing-cost loan with your lender. That being said, it pays to be informed about the costs you are being charged and which charges you can negotiate and/or shop around for to get the best deal. USDA loans are meant to help people that are in a lower income bracket and are unable to secure financing from any other source, but that … [Read more...]
