USDA loan available for 610 Charlton St., Southbridge Ma 01550. This is newsworthy, and I will explain why. 610 Charlton St., Southbridge Ma 01550 is an attached dwelling. It is considered a half duplex. There are no association fees so when you buy this home, you own it outright and there are no additional costs. It is also recorded as a condominium on the deed. This can be problematic for buyers looking to finance this home with FHA financing. This is why having an USDA loan available for 610 Charlton St., Southbridge Ma 01550 is such a big news.
Let’s start with what is a USDA loan:
USDA loans are mortgages backed the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans are available to home buyers with below-average, offer 100% financing with reduced mortgage insurance premiums, and feature below-market mortgage rates.
This means that you can now put nothing down on a USDA financed loan for 610 Charlton St., Southbridge Ma 01550. You can build in your closing cost into the loan as well so there is very little out of pocket for you when you are considering an USDA loan for 610 Charlton St., Southbridge Ma 01550. The house is in move in condition so it will surely pass USDA appraisal.
Most lenders don’t offer the USDA loan so you need to talk to Kristen Walther from Norcom as she has done the legwork to make USDA loan available for 610 Charlton St., Southbridge Ma 01550.
“Using a USDA loan, buyers can finance 100% of a home’s purchase price while getting access to better-than-average mortgage rates. This is because USDA mortgage rates are discounted as compared to rates with other low-downpayment loans.” Kristen told me.
“The repayment schedule doesn’t feature a “balloon” or anything non-standard; the closing costs are ordinary; and, prepayment penalties never apply.
The two areas where USDA loans are different is with respect to loan type and downpayment amount.
With a USDA loan, you don’t have to make a downpayment; and you’re required to take a fixed rate loan. ARMs aren’t available via the USDA rural loan program.
Rural loans can be used by first-time buyers and repeat home buyers alike. Homeowner counseling is not required to use the USDA program.
USDA Loans Require Mortgage Insurance (MI)
The Rural Housing Loan program is a product of the U.S. Department of Agriculture.
The program partially self-funded. Similar to the Federal Housing Administration’s FHA mortgage, the USDA uses homeowner-paid mortgage insurance premiums to keep the USDA home loan program going.”
The USDA mortgage insurance rates are:
For purchases, 2.75% upfront fee paid at closing, based on the loan size
For refinances, 2.75% upfront fee paid at closing, based on the loan size
For all loans, 0.50% annual fee, based on the remaining principal balance
As a real-life example : A homebuyer with a $100,000 loan size in Blacksburg, Virginia, would be required to make a $2,750 upfront mortgage insurance premium payment at closing, plus a monthly $41.67 payment for mortgage insurance.
USDA upfront mortgage insurance is not paid as cash. It’s added to your loan balance for you.
Another reason why USDA loan available for 610 Charlton St., Southbridge Ma 01550 is that
USDA mortgage insurance rates are lower than those for comparable FHA loans or conventional ones.
FHA mortgage insurance premiums include a 1.75% upfront mortgage insurance premium, and 0.85% in MIP annually
Conventional loan private mortgage insurance (PMI) premiums — even via the 3%-down HomeReady™ program — can range above one percent annually
With USDA loans, then, mortgage insurance premiums are just a fraction of what you’d typically pay. Even better, USDA mortgage rates are low.
USDA mortgage rates are often the lowest among FHA mortgage rates, VA mortgage rates, and conventional loan mortgage rates — especially when buyers are making a small or minimum downpayment.
“USDA loan rates are often lower than comparable conventional 30-year fixed mortgage rates. Plus, because mortgage insurance rates are lower, with your small down payment, USDA loans can often be a better deal as compared to FHA loans or conventional loans.”Kristen told me.
With the USDA Rural Housing Program, your home must be located in a rural area. However, the USDA’s definition of “rural” is liberal. Many small towns meet the “rural” requirements of the agency, as do suburbs and exurbs of most major U.S. cities. And USDA loan available for 610 Charlton St., Southbridge Ma 01550
The website of the U.S. Department of Agriculture lists eligible USDA communities by census tract. You are required to provide a home’s exact address. The website will show whether that home meets program guidelines.
The USDA loan does not have a minimum score, per se, but 640 is generally regarded as a cutoff point. If your FICO is below 640, you should be prepared to explain why your credit score is below 640, and provide documentation.
In order to be eligible for many USDA loans, household income must meet certain guidelines.
Eligibility · Income Eligibility · Single-Family Housing · Satellite Eligibility Rules
Now that you know a bit more about USDA loan available for 610 Charlton St., Southbridge Ma 01550, I would like to invite you to Public open house on Saturday, June 25, 2016 11:00 am to 1:00 pm at 610 Charlton St., Southbridge Ma 01550
SEE YOU THERE!