USDA Loans

 

Why Choose a USDA Loan

 The USDA loan is one of the most beneficial programs for homebuyers wishing to purchase a home in rural areas.

Designed to help buyers achieve the dream of homeownership, the USDA loan comes loaded with benefits that open the doors to many who may not otherwise qualify for conventional home financing.

Advantages of USDA Loans

This loan program offers several advantages over other mortgage options, largely because the USDA guarantees all loans against default. This means that lenders can take on more risk and offer homebuyers favorable loan terms.

No Down Payment

The most common is the ability to obtain 100% financing without having to spend years saving for a down payment. This government-backed loan option is one of the last remaining $0 down payment mortgage options out there.

Competitive Interest Rates

Due to the USDA guarantee, lenders are able to offer some of the lowest interest rates on the market. While actual rates will vary by lender due to other contributing factors, know that your credit profile and current market conditions play a vital role in your mortgage rate.

Low Monthly Mortgage Insurance

With a conventional loan, you typically pay "private mortgage insurance" (PMI) if you don't have a 20% down payment. FHA loans also have high annual mortgage insurance fees.

USDA loans, on the other hand, don't have PMI. Instead, the USDA uses two fees: an upfront guarantee fee that is paid at closing and can be included in your loan amount, and an annual fee, which gets included in your monthly mortgage payment. The upfront fee is 1% of the total financed amount while the annual fee is 0.35% of the loan's current balance.

USDA loans have the lowest funding fee of all government-backed loan products.

Flexible Credit Guidelines 

Most conventional lenders look for a credit score of at least 640, however you'll need something closer to 720 to qualify for the lowest interest rates. Luckily, USDA loans will allow for lower credit scores, sometimes as low as 580.

Eligibility

The vast majority of the United States falls within what the USDA considers an eligible, rural area. While the goal is to boost population in non-urban areas, the USDA's definition of rural areas casts a broad net. In fact, a "rural" area is defined as any area with a population of less than 35,000 people. That means that an estimated 97 percent of the country could qualify for a USDA loan.

Team Lasson is here for all of your home buying needs!  If you’re thinking about making the leap into home ownership in the near future, please contact us today to get started.  We can help you determine what loan program works best for your financial goals.  The first step in preparing for your big purchase is to get pre-approved for a mortgage at Lake of the Ozarks.  Please visit www.yourlakeloan.com or give us a call at (573) 216-7258 to get started.

Michael Lasson

Senior Mortgage Banker

NMLS #:  493712

Flat Branch Home Loans – Team Lasson

2882 Bagnell Dam Blvd

Lake Ozark, MO 65049

Cell:  (573) 216-7258

Email:  teamlasson@fbhl.com

Website:  www.yourlakeloan.com

**The postings on this site are my own and do not necessarily represent Flat Branch Home Loans positions, strategies, or opinions.

Flat Branch Home Loans NMLS 224149. A Division of Flat Branch Mortgage Inc. For more licensing information, visit NMLSConsumerAccess.org