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A USDA loan is a loan program insured by the Federal
Government (US Department of Agriculture) and is designed to help those
families that desire to own a home in small communities or in rural areas. |
Are these loans only available in rural areas?
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There are many areas just outside major metropolitan areas
that will still qualify. These outlying areas are still considered small
communities. |
What is the difference between a USDA Loan and a� Loan?
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They are the exact same thing; however different regions
may use one or the other terms more specifically. |
How much down payment do I need?
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Loan terms are for 100% financing therefore no down
payment is required. |
Do I need any money?
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Loan terms include 100% financing, however there are
closing costs associated with the loan. In most instances the seller can or
will pay the part or all of the closing costs. When a seller will not pay the
costs and the home appraises for more than the purchase price then the costs
can be financed into the loan (not to exceed the appraised value). This means
that technically a buyer can purchase a home with absolutely no money of
their own. |
Is there a limit to what the seller can pay?
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There is no limit to what the seller can pay. |
What is PMI?
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PMI is a form of insurance that is used to offset losses that a lender will incur if and when a borrower fails to pay their home loan. Conventional loans refer to this insurance as PMI, FHA loans refer to this insurance as MIP, and VA loans refer to this insurance as Funding Fees. The borrower typically pays this fee upfront or monthly and in some cases both when they do not make at least a 20% down payment. Apply Now
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Why do USDA loans not require PMI?
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There is no monthly PMI, however USDA loans require a 2%
Guarantee Fee that is financed into the loan. Since there is no monthly PMI
the mortgage payments are typically less than other loans. |
Why does the government only offer these loan in certain areas?
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Typically smaller communities do not have the lending
presence that a major metropolitan area may have available, so the government
is trying to promote living in these smaller communities. |
Are there income limitations?
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Yes there are income limitations. Those that exceed the
income limitations can usually very easily qualify for home financing using
traditional lending programs. Income limitations are based on family size,
and vary by State and County. For example a typical county in California with
a family of four can have an annual income of roughly $95,250 , and a family
of six range by County to $97,150 |
What income counts toward the income limitations?
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Typically all household income is included, but there are adjustments
made to the income guidelines for dependent children, age, full time
students, disabled or handicapped persons, etc� |
Are USDA loans only for purchasing a home?
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You can refinance an existing USDA loan. |
Is there a maximum loan amount?
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No, there are no loan limits on Guaranteed� loans provided the income
requirements are met and the qualifying income warrants the loan amount. |
What are the rates and terms available on USDA loans?
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30 year fixed interest rate�no exceptions. Interest rates
may vary by region, and are typical market rates. |
How much are the closing costs?
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Closing costs are typical for each area and are the same
as similar transactions such as FHA or VA loans. |
Do I need a perfect credit history?
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A good credit history is desired, however there are
exceptions based on individual circumstance. Credit waivers can be issued if
there is not a consistent pattern of credit delinquency. |
Who is eligible for a USDA loan?
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Qualifying borrower must be a US Citizen, a US Non Citizen
National or have a qualified Alien status. |
Are there other eligibility requirements?
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Borrowers must be at least 18 years of age, not own adequate house in the local commuting area, must occupy as the primary residence on a permanent basis, and be unable to obtain conventional financing with a 20% down payment. Apply Now����� 866 280 0020
Shining Star Funding Corp 3160 Crow Canyon Rd #320 San Ramon,Ca 94583 |