What You Need to Know About USDA Loan Program Updates

A very popular and great loan program is about to get even better. USDA 100% loan to value program is about to get even more affordable.

Starting October 1, 2016 USDA is lowering the upfront premium which is financed and tacked onto the loan as well as the monthly premium. The zero-down program offers a loan product to qualified borrowers in eligible areas to literally come to the closing table with no money out of pocket, receive a great low rate, and affordable payment.

USDA mortgages are to promote homeownership in rural areas, however “rural” is quite liberal. Many suburban neighborhoods are eligible for financing as well and buyers can check for eligible areas by clicking the link below this article.

“The USDA loan product has always been a very popular one for our clients and continues to be a great avenue especially for those first time homebuyers or cash strapped individuals. We fully expect these changes to only grow this product and enable us to offer an even better product to our clients,“ stated Sales Manager Cory Walradth.

USDA being backed by the government allows lenders to approve mortgages that may not qualify under guidelines for other programs. Bailey & Wood is currently doing USDA loans with credit scores as low as 620. With the costs being reduced and flexible underwriting guidelines you will want to check this program out if shopping for a home in an eligible area.

Is the home you are looking at eligible for USDA financing? Click here to check http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

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