One of the best kept secrets in the mortgage industry is the USDA Rural Development Loan or RD loan as it is sometimes known. There are several reason why this may be just the right loan for you.
· Zero Down Payment
· Seller may pay some or all of the closing costs
· Competitive, 30 year, fixed rate Government mortgage
Up until October 1, 2011 we could have added “no monthly Mortgage Insurance”
Currently the USDA Rural Development Loan requires a small MI payment that is calculated on the average annual scheduled unpaid principal balance for the life of the loan. The fee will be calculated when the loan is made and every 12 months thereafter until the loan is paid in full.
The good news is that the previous Funding Fee of 3.5% is now lowered to 2%. This fee is paid at the time of closing and may be financed in the loan therefore no cash is required from the borrower.
To see how the new MI will affect your monthly payment, you can click on the following link for a chart that calculates the payment
So, what do you think? Is the USDA Rural Development Loan still a good deal? I think so. If you’re wondering what it takes to qualify? Call me at (615) 895-4265 or email email@example.com .