The USDA program is a great one. It allows borrowers who are purchasing a home in a rural area to get 100% financing, that is if their income falls within USDA guidelines. Many of the "rural" area are actually very close to city settings and hardly rural at all. Some new guidelines have gone into effect on October 1st, 2011 to take note of:
USDA mortgage insurance rates have now changed due to the infrastructure of how USDA loans are funded. They are now self funded and do not use tax payer funds anymore causing the mortgage insurance changes as followed:
Purchases: 2.00% upfront fee paid at closing, based on the loan size.
Refinances: 1.00% upfront fee paid at closing, based on the loan size.
For all loans: 0.30% annual fee, based on the remaining principal balance.
If you are interested in seeing if a home you or one of your client's is interested in, please call Aapex Financial Solutions at 704-892-5211 and we can provide you with the look-up tool to see if you can get 100% financing.
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