Here is a great USDA "apples to apples" comparison. A Guaranteed USDA 100% loan offers the home buyer the most affordable payment, less out of pocket cost, and usually the most competitive 30 year fixed rate in the market.
This 100% Guaranteed loan payment includes the 2% funding fee that is rolled into the loan. The following is based on a $175,000 loan at a 6% interest rate.
- No PMI loans at 8% with a 30 Year term = $1284
- Freddie 100 = $1189
- My Community = $1135
- 5% down conventional ($8750 + MI) = $1105
- FHA 3% down ($5250 + UFMIP + MI) = $1105
- 40 year loan + MI = $1103
- Flex 97 ($5250 + MI) = $1091
- 80/20, 80: 6% 30 yr loan 20: 7.5% 30 yr loan = $1084 (hard to get anymore)
- 100% USDA plus 2% Fee with NO MI = $1070
Many of the products from above will not have a comparable fixed rate. They will be higher.
Have a nice day.
Justin Messer
We provide USDA home loans in Georgia, Florida, Alabama, Tennessee, and North and South Carolina.
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