USDA Updates – They now charge for the awesomeness!

Mortgage and Lending with CrossCountry Mortgage, LLC NMLS #3029 NMLS #126036

USDA Updates – They now charge for the awesomeness!

In my last post I gave a few tidbits about USDA (Click here if you missed it - Kick butt 100% financing that you’ll probably qualify for).   WOW, I didn’t realize so many people would respond.  Good Great stuff guys.  So here are a few updates….

October 1, 2011 USDA Rural Housing Loan Changes:USDA Rural Housing king of prussia

USDA Rural Housing has been taxpayer-subsidized for years.  Long gone are those days.  The USDA Rural Housing Program will no longer be dependent on tax payer money (wish we could say the same about the big banks! Can I get an AMEN!!) To stay in business, they started charging for the awesomeness of the program (as if you didn’t know that was coming).  They not only charge mortgage insurance upfront now, but monthly as well for the life of the loan. (insert Homer Simpson like “DOH!” right here) Relax Homie, the upfront has gone down & the monthly isn’t bad.  

USDA Rural Housing mortgage insurance rates are:

  • For purchases, 2.00% upfront fee paid at closing, based on the loan size - down 1% from 3% total
  • For refinances, 1.00% upfront fee paid at closing, based on the loan size - no change
  • For all loans, 0.30% annual fee, based on the remaining principal balance - this sucks but just think – FHA is 1.15%!

Real life numbers for USDA Rural Housing:t Name

 USDA Rural Housing king of prussia example

Okay so paying mortgage insurance for the life of the loan isn’t cool but before you get your panties in a bunch, let’s bring it back into perspective:

  • FHA charges 1.15%, which would be $184 per month (you may insert Homer-like “DOH!” again)
  • 100% financing – this alone is worth it
  • The rates currently are in the high 3% to low 4% range
  • It’s 100% financing (yes I said this twice)
  • It’s now only 2% not 3% upfront so it takes a little of the bite out of it
  • You don’t need a 660 credit score
  • Did I mention it’s 100% financing?

USDA Rural Housing king of prussia exampleFor my local clients, check out just a few of the areas that the USDA Rural Housing Programs are available in:
Collegeville, Royersford, Evansburg, Trappe, Limerick, Schwenksville, Skippack, Oaks, Kimberton, Chester Springs, West Pikeland, Mont Clare, Birchrunville, Spring City ALL QUALIFY!!!  (Insert Homer-like WOO HOO!!!)

 So what’s your next step you say? (get ready for a shameless plug for the Joe Gonzalez Team at Meridian Bank)

 I’m so glad you asked! Give Joe Gonzalez from Meridian Bank a call. I’ll be happy to help you with your financing needs! :-) I hope you enjoyed the info!

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For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

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Mary Ann Daniell Realtor
Coldwell Banker United, Realtors - Subsidiary of NRT LLC - Killeen, TX
Delivering Successful Results Since 1999

USDA is a great program for buyers who are short of funds to use an FHA loan.   Not many agents in our area know about it, since we are a high VA loan area (due to Ft. Hood) and we are so well versed in 100% VA loans.  Moving out away from the immediate Ft. Hood area, though, into communities that have fewer VA loan buyers, USDA is a great opportunity for buyers.

Oct 24, 2011 10:56 AM #1
Rebekah Radice
Imagine WOW! Digital Marketing Agency - Burbank, CA
Social Media Marketing, Coaching & Training

USDA is not available in my area but it is in our surrounding counties.  It's extremely underused and not understood by most agents or clients.  Great job on your feature Joe!!  So excited to see you blogging and getting the word out on this little known, but fantastic option!!

Oct 24, 2011 02:00 PM #2
Joe Gonzalez
CrossCountry Mortgage, LLC NMLS #3029 - King of Prussia, PA
NMLS# 126036 (610) 739-6563

@Mary Ann - Got it, that makes a lot of sense. My next blogging subject will probably be pushing the VA loans.
@Rebekah - I am officially changing your name to Queen Rebekah (you know what that makes BPD Dean right?)! I'm pushing it because we have several tech co's here in my area surrounded by guess what? RURAL AREAS!!  Hellooooooo.....  And thank you.  You KNOW I wouldn't/couldn't have done it without you guys. Thanks for the inspiration & education. I miss all of you tremendously. 

Oct 25, 2011 02:51 AM #3
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