USDA Rural Housing Loan: December 2009

Georgia Mortgage Rates for December 4th, 2009.  

Since November 9th, mortgage rates have continued to drop.  November 25th mortgage rates hit an all time low at 4.375%.  For the past 6 days straight, mortgage bonds have worsened and worsened causing mortgage rates to climb every single day.  Did we see this coming?  YES!  Will rates continue to tick higher?  YES!  Will we see 4.375% again?  Most likely not.  Although, wouldn't it be nice to refinance your 5.5% (extremely high rate loan, HAHA) into another low 4.5% loan?  YESSSS!  Contact your local mortgage lender and check to see if refinancing is a good option for you.  If the rates have ticked too high to benefit you, then go ahead and apply and if rates drop once again, then you will be ready to attack!

Rate Lock Advice and Mortgage Market Update.

USDA Rural Development is a fantastic avenue for to obtaining a mortgage in the United States.  Guaranteed Rural Housing Loans allow a home buyer to finance up to 102% of the appraised value, pay NO Private Mortgage Insurance (PMI), and have the lowest possible payment for a 30 year fixed rate mortgage!

USDA Rural Development Benefits:      

• Loan-to-Value:  Can finance up to 102% of appraised value.
• Guarantee Fee:  One time fee of 2% of the loan amount.  It is usually financed.
• Cash to Close:  Very little or zero cash needed to close in most cases, no minimum contributions.
• Mortgage Insurance:  NONE what so ever!
• Term:  30 Year Fixed Rates only
• Interest Rates:  Rates are typically in line with conventional and FHA rates. 
• Property Location:  Must be located in eligible "rural" areas.  Go to USDA Property Eligibility to see if an address qualifies.  If the site cannot find the location, then I can do a manual search for you.  New construction usually do not show up, but they do qualify.
  
• Household Income:  Must verify all income of all household members.  The adjusted total cannot exceed USDA Rural Development's Income Limits.  You will be surprised by how much the limits are for your county.  Generally, the income limits for USDA Rural Development range from $70,000 to $105,000! 
• Credit Scores:  USDA Rural Development requires a borrower to have a middle credit score of 620.  Credit qualifying is very linient and similar to that of FHA (Federal Housing Administration). 
• Derogatory Credit Items:  Cannot not have any federal tax liens or judgments.  Cannot have a foreclosure within 3 years, a Chapter 7 Bankruptcy with 3 years or a Chapter 13 Bankruptcy within 1 year.  Also, applicant must not have any 30 day or more late payments on a mortgage within the most recent 12 months.

USDA Rural Development is a division of the US Government that was established to help families achieve home ownership.  USDA home loans are fully backed and insured by the government and are the absolute best way to obtain a no down payment loan.  These Guaranteed Rural Development loans are cut and dry.  They are fixed rate loan programs with no fine print or deceiving terms.

APPLY NOW for a USDA Rural Development Home loan.

You may also visit USDA Loans for more information!