The LTV or Loan-to-Value Ratio can be a real hurdle when you try to get a mortgage. Oftentimes, the LTV is too high, forcing you to either put more money down on the home if you are purchasing or wait to refinance until the value is higher. The LTV is dependent on the value of the property, which comes from the appraisal. On the USDA Streamline Loan, however, there is no required appraisal, so the USDA Guarantee Fee does not play a role … [Read more...]
Can You Roll Closing Costs into a USDA Mortgage?
One downside to any mortgage program is the closing costs. They can add a significant expense to an already expensive process. Even though the USDA mortgage does not require you to make a down payment, you still have to consider the costs of moving and turning on your utilities. In order to keep the USDA program affordable, the program does allow you to roll the costs pertaining to closing into your loan as long as you meet certain … [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...]
Comparing the USDA Mortgage Insurance with FHA Mortgage Insurance
When it is finally time for you to buy a house, you are faced with many options. If you are a first-time homebuyer or a homebuyer entering back into the housing market after overcoming a foreclosure in the past, you might not have a lot of money to put down on the home. The good news is that there are several loans at your disposal, unlike in years past. The bad news is that you will have to pay mortgage insurance on any … [Read more...]
How to Figure the USDA Loan Guarantee Fee
Every loan has fees, but some have more than others. In general, the loans that offer a guarantee in the event that you default on the loan cost the most in the long run. The same is even true for conventional loans; if you put down less than 20 percent of the purchase price, you will need to pay a mortgage insurance premium, which guarantees the loan if you default, making lenders more willing to lend to you. Basically … [Read more...]
