The USDA loan program is back!
The USDA Guaranteed loan program is back and people can now get USDA loans subject to ““the availability of funds and statutory authority to obligate such funds to support the proposed guarantee, the statutory authority to charge a sufficient guarantee fee (if any is needed, to support the proposed guarantee with available funding), and should the lender pass on to the borrower a loan origination fee that is higher than the guarantee fee that RHS is ultimately authorized to charge on the proposed guaranteed loan, the lender agrees to promptly return the difference to the borrower.”
This means that your lender can now take your USDA loan application, issue a conditional commitment and expect that your loan can get funded. One update to the program is that there is a new 3.5% guarantee fee – but for people who have been unable to get USDA loan financing at all, this increased fee is a small concern.
A few highlights about the USDA loan program:
Here are a few things to remember about USDA 100% loans:
- There is a 3.5% USDA fee that can be rolled into the loan amount
- There is no monthly PMI
- USDA loans are only good for a primary residence
- USDA loans are income capped based on the county
- A minimum 620 credit score is required
- Only certain homes qualify for USDA loans, depending on location
The USDA loan program is more popular than ever – and going into 2010 and 2011, it looks like the USDA loan is going to be a popular choice among borrowers.
