USDA Has a Home Loan Program

The full name of this program is USDA Rural Housing Guaranteed Loan Program . We’ll simplify its name here to the USDA Loan . If you prefer, our office calls it the Meat Loan. This is the first of two articles. Article number one introduces the program’s benefits . Article two covers the qualifying aspect, which is easier than most consumers anticipate. We’ll need a program to compare to USDA, so we’ll use its closest relative, the FHA loan program. Let’s get to the first USDA loan benefit: 1. No down payment required That’s right, USDA loans require no down payment and have a standard 30-year fixed term. 2. Nominal mortgage insurance In 18+ years of lending I’ve encountered zero home buyers who want or like mortgage insurance. Compared to similar down payment options across other programs, USDA loans require lowest-in-class mortgage insurance. Government loans split their mortgage insurance (MI) between an upfront fee, financed into the loan amount, and the MI that contributes to the payment amount. The MI that contributes to one’s payment is known by different names, but we’ll call it the mortgage insurance factor or MI factor . USDA’s MI factor, also called its Guarantee Fee, is 0.35% . This program requires 0% down. USDA’s upfront fee is 1.00% or 0.01 times the loan amount, financed into the loan. FHA’s MI factor, also called its Mortgage Insurance Premium is 0.55% . This program requires at least 3.5% down. The upfront government fee for FHA is 1.75% , also financed into the loan amount.

October 18, 2023 Download our Mobile App: Download our Mobile App: Housing News USDA Has a Home Loan Program The full name of this program is USDA Rural Housing Guaranteed Loan Program . We’ll simplify its name here to the USDA Loan . If you prefer, our office calls it the Meat Loan. This is the first of two articles. Article number one introduces the pr... (read more) Housing News Mortgage Volume Index at 28-Year Low Mortgage applications fell again last week as interest rates rose into the high 7 percent range. The Mortgage Brokers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 6.9 percent on a seasona... (read more) Mortgage Rate Watch MND Rate Index Officially Hits 8.0%, Highest in 23 Years Our rate index has rapidly grown in popularity and exposure in recent years because it is timely and because it accounts for upfront costs in a way that other single-number indices cannot. Because we began this effort in 2009, we can only techn... (read more) Rob Chrisman DSCR, CRM, Predictive Analytics Tools; Wholesale News; Application Volume Continues to Drop “What do you call a bovine with a stutter that makes chocolate milk? Cacao.” Speaking of sweets, hats off to Byte’s booth at the conference for dishing out some amazing s’mores brownies here in Philadelphia. (They will be my breakfast on my flight ou... (read more) Mortgage Rates 30 Yr. Fixed Rate 8.00% +0.08% Rate Change Points Mortgage News Daily 30 Yr. Fixed 8.00% +0.08 0.00 15 Yr. Fixed 7.29% +0.04 0.00 30 Yr. FHA 7.40% +0.06 0.00 30 Yr. Jumbo 8.06% +0.05 0.00 5/1 ARM 7.25% +0.15 0.00 30 Yr. VA 7.42% +0.07 0.00 Updates Daily - Last Update: 10/18 15 Yr. Fixed Rate 7.29% +0.04% Rate Change Points Freddie Mac 30 Yr. Fixed 7.57% +0.08 0.00 15 Yr. Fixed 6.89% +0.11 0.00 Updates Weekly - Last Update: 10/12 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.70% +0.03 0.71 15 Yr. Fixed 6.98% +0.01 1.04 30 Yr. Jumbo 7.56% -0.14 0.85 Updates Weekly - Last Update: 10/18 MBS / Treasuries UMBS 30YR 6.0 96.69 -0.47 Price / Yield Change MBS UMBS 6.0 96.69 -0.47 GNMA 6.0 97.33 -0.41 Pricing as of: 10/18 5:31PM EST 10 Year US Treasury 4.9150 +0.0770 Price / Yield Change US Treasury 2 YR Treasury 5.225 +0.009 5 YR Treasury 4.936 +0.066 7 YR Treasury 4.960 +0.073 10 YR Treasury 4.915 +0.077 30 YR Treasury 4.995 +0.070 Pricing as of: 10/18 5:31PM EST Latest Video Fed Governor Christopher Waller: Officials can 'wait, watch and see' before... Housing starts less than expected, permits top outlook Home and insurance costs are hurting consumers more than rates, says Hancoc... Homebuilder sentiment drops as mortgage rates rise higher Around the Web CNBC The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar CNBC Fed Chair Powell to deliver key speech Thursday: Here's what to expect CNBC Bad news for commercial real estate: Architects report a big drop in business CNBC Fed's Waller says officials can 'wait, watch and see' before acting on interest rates Calculated Risk Blog Fed's Beige Book: "Little to no change in economic activity" Calculated Risk Blog Housing Starts Increased to 1.358 million Annual Rate in September CNBC 10-year Treasury yield rises above 4.85% as investors weigh economic data Calculated Risk Blog September Housing Starts: Near Record Number of Multi-Family Housing Units Under Construction Black Knight How Much Does a Mortgage Servicing System Cost? Marketwatch Bonds looks 'cheap' to top JPMorgan strategist getting defensive amid Israel-Hamas war Calculated Risk Blog Lawler: Early Read on Existing Home Sales in September CNBC UK inflation holds steady for September after Bank of England pauses rate hikes Calculated Risk Blog AIA: Architecture Billings "New Decline in Business Condition"; Multi-family Billings Decline for 14th Consecutive Month

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