Fannie Mae Is Making Our USDA Loan Program Much Cheaper
I’ve been helping people for years to get the cheapest, easiest loan possible to buy a home in Arizona with the USDA Loan Program. Now, in a recent article in USA Today it is reported that Fannie Mae and Freddie Mac are raising their loan costs to home buyers. This will make the USDA Loan Program even cheaper than it is now. Fannie and Freddie fund home loans that are known as Conventional loans and have been the largest supply of home loans forever.
While the USDA Loan Program has limits on the fees that can be charged, Fannie and Freddie are introducing new fees to be charged to consumers based on your credit score and how much you are putting down.
If you plan to put more than 25% down and have a credit score higher than 720, you won’t notice a difference in the new Fannie and Freddie price hikes. Everyone else will see a substantial price increase, only if you apply for conventional financing.
The Fannie Mae & Freddie Mac price increases go into effect on April 1, 2011.
Just to give you an idea, for someone buying a $150,000 home with 5% down and a 620 middle credit score, Fannie Mae will charge that borrower an extra $4,631 at closing once April 1st hits.
With the USDA Loan Program, not only do you keep that 5% down payment in your bank account but you get to keep the extra fee the Fannie Mae would charge you.
Proof once again that the USDA Loan Program is the cheapest loan available to buy a home in Arizona.
We are seeing the use of the USDA Loan Program increase in popularity all over Arizona, especially in Sahuarita, Anthem, Buckeye, Maricopa and Queen Creek.
I hope you found this Arizona Home Loan tip useful and please, leave a comment below.
To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab at USDARuralHomeLoans and ask a question if you like. If you are ready to go ahead and get your application in, you can print out my Arizona USDA Loan Application here.
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