USDA Home Loans in Delaware
Here is an example of how a USDA Home Loan can be done in Delaware. The total housing payment may actually be less than rent in the same area. This is for the 100% Guaranteed Rural Housing Home Loan.
$150,000 purchase price plus $3061 for the up front funding fee. Total loan amount is $153,061. At a fixed interest rate of 4.5%, the principal and interest is $776.72. Add in the monthly mortgage insurance of $51.02, the estimated property taxes of $60 and the estimated home owners insurance of $40 and the total housing payment is $927.02.
The seller can pay all of the transfer taxes, closing costs and pre paid interest, insurance and taxes. The home buyer will need some funds up front such as an earnest money deposit of $250- $500, $395 for the appraisal and $400 for a home inspection. The money paid as the earnest money deposit can be refunded at closing.
There are some income limits. In Kent and Sussex Counties, a household of 1-4 can make up to $78,200 and a household of 5-8 can make up to $103,224.
A middle credit score of 640 makes things go much more smoothly. If the credit score is not quite that high yet, there are some small tweaks that can be done to raise the score in a rather quick time period.
Home prices and interest rates are still quite low, so now is the time to jump in on this wonderful opportunity to become a home owner.
If you would like more information about this loan program or any others, please call JoAnn Moore at 302.855.1306 or 302.236.1229, MMODJoAnn@aol.com. JoAnn is a Licensed Mortgage Professional and a Certified Military Housing Specialist.