Why Choose a USDA Loan
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
