USDA Home Loan Approval

2012 Income Limits Published

USDA Home Loan Representative — Wed, 18 Jan 2012 23:44:20 +0000

The 2012 Income Limits for the Single Family Guaranteed Loan Program were published today with an effect date of today, January 18, 2012. The Guaranteed Underwriting System and the Income Eligibility calculator in the Eligibility website (http://eligibility.sc.egov.usda.gov) have been updated to use the new income limits. However, due to technical issues, the PDF version of the income limits will not be updated on the website until tomorrow, January 19, 2012. You will notice that the income limits are again displayed in an 8 tier format, however, the moderate income level is still based on a 2 tier level.

If you have any questions, please contact the Single Family Housing Guaranteed Loan Division at (202) 720-1452.

2011 USDA and FHA loans compared

USDA Home Loan Representative — Wed, 28 Dec 2011 20:22:31 +0000

Have you heard that USDA has now added an “annual guarantee fee” that is similar to FHA monthly mortgage insurance? While this does increase the monthly payment slightly, the monthly payments for USDA loans are still much lower than an FHA loan. And this is with ZERO down payment while FHA still requires 3.50% down payment. See the comparison chart below.

Loan Term	USDA	FHA
Purchase Price	$150,000	$150,000
Interest Rate	5%	5%
Loan Term	30 years	30 years
Down Payment	$0	$5,250
Base Loan	$150,000	$144,750
Upfront Guarantee Fee	$3,061.22	$0
Upfront Mortgage Insurance Premium	$0	$1,447.50
Total Loan Amount	$153,061.22	$146,197.50
P&I Payment	$821.67	$784.82
Monthly Guarantee Fee	$38.01	$0
Monthly Mortgage Insurance Amount	$0	$140.11
Total Monthly Payment (excluding taxes & property ins.)	$859.68	$924.93
Down Payment	$0	$5,250

2011 FHA Mortgage Insurance Premiums are now even higher!

USDA Home Loan Representative — Wed, 17 Aug 2011 21:29:52 +0000

Effective April 18, 2011, FHA mortgage insurance premiums were increased again. The borrower putting the minimum 3.5% down on an FHA loan will now pay $92.48/mo in Mortgage Insurance. This is in addition to the 1% up-front Mortgage Insurance Premium that is financed into their loan.
The USDA does not require mortgage insurance or PMI on their loans. However, in October there are changes coming! The 3.5% guarantee fee will be reduced to the level from previous years of only 2% and an annual premium of .30% will then be added to monthly payments. This “annual guarantee fee” is similar to monthly mortgage insurance charged by FHA. This money is used to fund the program. However the guarantee fee of .30% is much less than the 1.15% that FHA charges for mortgage insurance.

Now is the time to buy a home using the USDA Guaranteed Rural Development Loan. These loans will still be more attractive to buyers even after these changes happen in October.

Approvals for credit scores down to 600

USDA Home Loan Representative — Wed, 08 Dec 2010 16:19:53 +0000

USDAHomeLoanApproval.com is happy to announce an addition to our lender network that will allow USDA, FHA and VA loans down to 600 credit scores. Some additional requirements may apply for certain credit situations. Never assume you don’t qualify without first talking to a loan officer. Submit a quick inquiry form that takes < 30 seconds and you’ll be contacted by a loan officer within 1 business day.

New FHA mortgage insurance requirements make USDA Home Loans even more beneficial!

USDA Home Loan Representative — Fri, 03 Sep 2010 21:11:05 +0000

Effective October 4th, 2010 FHA is increasing the monthly mortgage insurance payments and while they are also reducing the up-front mortgage insurance, the result is still higher payments for homeowners.

With the new changes to the Guaranteed Rural Development Loan program the up front funding fee has increased to 3.5%. Even with this change, the monthly payment for the USDA Home Loan is lower than with an FHA loan.

See the comparison below. USDA loans have lower monthly payments, even without a down payment!

FHA	USDA


$150,000 purchase price	$150,000 purchase price

4.75% 30 year fixed rate	4.75% fixed rate

1.00% up front mortgage insurance (financed)	3.5% Guarantee Fee (financed)
****new FHA mortgage insurance requirements effective 10/4/10
$871.19 P&I monthly payment with monthly mortgage insurance (not including taxes and insurance)	$809.86 P&I monthly payment (not including taxes and insurance

$5250.00 required down payment	$0 down payment

Effective July 29th, 2010 – Locking rates for all 50 states!

USDA Home Loan Representative — Sat, 31 Jul 2010 03:46:59 +0000

The Bill HR 4899 was passed this week by the Senate and is on it’s way to the presidents desk to be signed into law. The much anticipated passing of this bill will ensure the future of USDA Home Loans. The Guaranteed Rural Development Loan program will now be self-funded which means that there will no requirement of future budgets. The funding fee has been increased from 2% to 3.5%.

Effective immediately lenders in our network are able to lock in rates and proceed with applications for USDA Home Loans in all 50 states.

Why have some lenders are not funding USDA Home Loans.

USDA Home Loan Representative — Sat, 19 Jun 2010 16:55:36 +0000

On May 26th, 2010 the USDA Rural Development office issued a notice that they will now be issuing conditional commitments up to $2.5 billion for the USDA guaranteed rural development loan program. This is an emergency appropriation of funds that will allow the program to continue while we are waiting for the final bill H.R. 4899 to pass.

With the new modified conditional commitment, there is an additional risk being posed to the lender that is closing these loans. Because of this, many lenders have decided not to fund any new USDA Home Loans until the final passage of the bill. While we are confident that this bill will pass, but we are unsure on the timeline.

While some of the lenders in our network have experienced some setbacks, we are still closing loans in the following states: AL, CA, FL, GA, IN, KS, KY, MO, MS, NE, NC, OH, OK, SC, TX and VA. Apply on our website or email us at Info@USDAHomeLoanApproval.com.