With the recent and ongoing changes in FHA, USDA loans are among the hotest mortgage products in many cities in the great state of California.
Today's posted rate for a USDA 30 yr fixed mortgage with a 1% origination point is:
As compared to Fannie Mae or Freddie Mac who are running at 5.75% today and with a minimum of 5% down, USDA offers a far superior choice for many borrowers who have been recently saddled with changes in FHA guidelines now mandating a 3% down payment as of October 1, 2008 and a 3.5% down payment as of January 1, 2009.
So just what are the benefits of USDA:
First of all, it is not a steak; it is a loan program.
USDA-United States Department of Agriculture has as it's charter a commitment to help families in rural areas, who otherwise could not qualify for a standard Fannie Mae-Freddie Mac loan approval, qualify for outstanding terms and underwriting criteria:
- Minimum Fico 600
- No cash reserves
- 100% financing
- Max income limits of $81,650 for a family of four (moderate income limts)
- No PMI
- If appraisal is higher than sales price you may finance closing costs without raising the sales price.
- New for 2008: borrower does not have to be a first time homebuyer
- No limit on seller contributions
- No BK in the past three years
- Max of 1 x 30 day late in the past 12 mos.
- Purchase or new construction OK
- May refinance an existing GRH loan into a new GRH loan
Now the only antiquated guidelines are:
- No inground pools
- Site value may not exceed 30% of total value
So if you live in towns such as Cameron Park, Diamond Springs, El Dorado Hills, Lincoln, Auburn, Colfax, Grass Valley, Georgetown, Grizzly Flats, Placerville, Pollock Pines, Shingle Springs, Foresthill, Kings Beach, Loomis, Meadow Vista, Tahoe City, Tahoe Vista, Rancho Murieta, Galt, Herald, Isleton, Locke, Walnut Grove, Wilton, Live Oak, Nicolas, E. Nicolas, Esparto, Winters, Knights Landing among many many more cities, you may just qualify!
So contact a preferred USDA lender today and get qualified for a USDA home loan where you live!