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New 2015 USDA/Rural Loan Level Price Adjusters on June 25, 2015

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Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

 

 USDA/Rural implemented their New 2015 USDA/Rural Loan Level Price Adjusters on June 25, 2015.  Just like Fannie Mae has Loan Level Price Adjusters (LLPA), so does USDA/Rural.  The difference is Fannie Mae bases their Loan Level Price Adjusters on credit scores and down payment (Loan-To-Value), USDA/Rural only bases their LLPA's on credit scores since USDA/Rural does not require a down payment.  So unlike the Fannie Mae Loan Level Price Adjusters (LLPA) chart which is extensive, the USDA/Rural chart is very short.

Below is the USDA/Rural Loan Level Price Adjusters (LLPA)  chart showing what the LLPA's were prior to the change on June 25, 2015 and the new LLPA's.

 

 
Even though the New 2015 USDA/Rural Loan Level Price Adjusters on June 25, 2015 are not as extensive as Fannie Mae's, they still make it tougher for Borrowers with little money to qualify for a mortgage due to increased closing costs.  But even with the increased LLPA's USDA/Rural is still an excellent loan program especially for First Time Homebuyers, because it is a true no money down 100% fiance loan program.  The USDA/Rural Mortgage Program is restricted to rural areas, and has income limits, but for Borrowers and properties that qualify, it is a great way to purchase a home and only have to pay closing costs.

However, even closing costs can be finance through a Closing Costs Assistance Loan (DAP) when the USDA/Rural Mortgage Program is combined with a Connecticut Housing Finance Authority (CHFA) Mortgage Program or with another Stated Bonded Mortgage Program.  USDA/Rural also allows Sellers to contribute up to 4% of the selling price to the Borrower's closing costs.  With either of these options a Borrower can purchase a home with a USDA/Rural Mortgage program with little or no money out of pocket.  

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by

George Souto
NMLS# 65149

C (860) 573-1308
CALL 7 Days/Wk
Fax (860) 760-6891

Email Me
About Me
My Blog

I am a Mortgage Loan Officer who can assist you with all your mortgage & refinancing needs in
CT, and RI

I can assist you with your Conventional,
FHA, CHFA, VA, USDA, & 203K loan programs.

I reside in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Haddam. E. Haddam, Higganum, Chester, Essex, Deep River.

 

Comments(7)

Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Hello George, more good information! I like the USDA program, and am fortunate that most of the area I sell in qualifies. So many people have no idea that this program exists, I have been raving about it for years! 

The LLPA for USDA will make it difficult for some, and that is a shame. I think so many here have been affected by the economy in a negative way they should have held off on these things. But what do I know. 

Jun 28, 2015 04:13 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi George - Thanks for the info - while not ideal, it's better than the Fannie Mae. We like the USDA program and have a done a bunch of them.

Jun 28, 2015 04:41 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

All of the areas that I work in qualify for the USDA loan program and we love it.

Jun 28, 2015 07:28 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

I love helping first time home buyers into a USDA home. They are so surprised and can get a good start in home ownership.

Jun 28, 2015 09:52 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

George, sadly, most of our area is no longer eligible for the USDA loan program.  I loved it for the first time home buyers.

Jun 28, 2015 10:20 AM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

George, I have one house that qualifies for it and I love the program...any increase hurts home buyers!

Jun 28, 2015 09:30 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Those with high credit scores are in the drivers seat. It pays to have and keep your credit clean and not have to pay the extra costs and fees.

Jun 28, 2015 11:24 PM