30 Year Fixed USDA no money down loans are available to all qualified buyers, not just first time buyers (FTB). USDA guidelines are more strict than for FHA loans and many times you will qualify for a lessor priced home going USDA. Sometimes this makes FHA a better choice though FHA requires at ;east 3.5% down payment of the purchase price. We can help you compare FHA, USDA and Conforming options. USDA is for owner occupied 1 unit properties in qualifying rural areas only. The major key is that these loans meet required 'guidelines' set by USDA, the government agency that administers USDA loans.

 

Interest rates do not vary much by risk, like conforming loans do, and are usually about 0.25% lower than conforming loans. 

 

Two types of Insurance, similar to Mortgage Insurance (MI), are both required on all USDA loans. 'Upfront Fee' and 'Annual Fee' paid monthly. Currently the Upfront Fee is 1.00% of the 'Gross Loan Amount' and is financed on top of the loan for a 'Total Loan Amount'. USDA 'Annual Fee' paid monthly is 0.35% factor, and is never cancellable and is there for the life of the loan, unlike conforming monthly MI which may be able to be cancelled. 

 

On an owner occupied purchase, gifts are allowed from relatives, and sellers can pay some or all of buyer's closing costs and pre-paids to reduce funds needed to close. A buyer doing a USDA loan can truly buy a house with just a signature at times.

 

While the USDA guidelines are 100's of pages long, this brief description are some of the general requirements. There are restrictions and you can't necessarily combine parameters and get a loan. USDA loans change requirements frequently. Requirements change without notice. Please call us to discuss your situation and goals. It is too complex to try and learn all the nuances on the internet.

 

USDA LOAN LIMITS for 2021 

Technically, there is no limit. The USDA "Single Family Housing Guaranteed - Income Eligibilty" income limits create the upper loan limits in essence. The maximum base loan amount is determined by underwriting the debt ratios using the buyer's qualifying income.

 

PURCHASE:

Minimum Down Payment as a percentage of purchase price:

Owner Occupied, SFR, Condo, PUD                                                                0.0%  

 

REFINANCE:

Rarely done. Call for information

 

CASH OUT REFINANCE:

Not eligible

Pacific Sunset Mortgage, LLC. NMLS #1086349 ML-5769. Steve Emory Sr Loan Officer NMLS #45523. I am authorized to conduct business in Oregon and Washington States. 15455 NW Greenbrier Pkwy  Suite 100, Beaverton, OR 97006. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify and Not all applicants will qualify. Equal Housing Lender. All opinions expressed by Steve Emory, on this website, on his Facebook pages, are Steve's opinions and do not reflect the opinions of Pacific Sunset Mortgage, LLC. You should not treat any opinion expressed by Steve as a specific inducement to take a particular mortgage or follow a particular strategy, but only as an expression of his opinion. You must make an independent decision regarding mortgages or strategies mentioned on his website. Before acting on information on this website, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial counselor. http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/1806349