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Analyze USDA Mortgage Rates and Requirements for Your New Home

When the time comes to purchase a new home, look into USDA Mortgage Rates before choosing a loan product. In many instances, the mortgage rates are lower than those seen with traditional 30-year fixed rate mortgages, especially when combined with a down payment on the property. One major benefit of the program is there is no early prepayment penalty, a fee, many lenders are now opting to charge borrowers. If you are interested in obtaining a USDA mortgage loan, you need to understand the requirements of doing so.

Eligibility

To qualify for this home loan program and USDA rates, you must meet certain eligibility requirements. The home needs to be your primary residence, and you must meet the income guidelines, which tend to be more liberal than those seen with most lenders. Only United States citizens, those who are qualified aliens or United States non-citizen nationals qualify for a USDA loan, and the borrower must be legally capable of obtaining a loan. Individuals barred from participating in federal programs may not make use of this loan program, and only those properties that meet the program criteria are eligible for a loan of this type.

USDA Loan Rates

Individuals wonder if they should search for a property eligible for USDA loan rates. Are the rates that much lower than seen with other types of loans? When you choose a USDA loan, the interest rate tends to be extremely low and there is no Mortgage Insurance required. In addition, you must have a minimum credit score of 620. Conventional mortgage rates tend to be higher, and one must have a higher credit score along with a five percent down payment. Those eligible for a VA loan need to consider this option, as there is no down payment requirement, as another option to compare with VA home loans. FHA loans, in contrast, require a 3.5 percent down payment and a minimum credit score of 580. FHA loans require a Mortgage Insurance Premium or MIP. Consider all options to determine which is best for you. Many individuals find the USDA mortgage interest rates best meet their needs.

Mortgage Insurance

USDA Mortgage Rates

One must consider mortgage insurance when researching USDA home loan rates, as this is a requirement of obtaining the loan. USDA home loans do not carry a mortgage insurance premium. They do, however, have a Guarantee Fee. When purchasing or refinancing a home, the buyer must pay two percent upfront guarantee fee at closing, based on the loan size. All loans also include a .40 percent annual fee, with this fee being assessed on the remaining principal balance.

Be sure to check USDA Mortgage Rates when searching for a home loan. You must ensure the property is eligible for this type of loan before proceeding, but many are surprised to find the definition of a rural property is very broad. Your dream home may qualify even if it is on the outskirts of a major metropolitan area. The goal is to find the cheapest interest rate, and quite a few individuals find they get this low rate with the help of a USDA loan.

For more information, contact our USDA Home Loan Specialists at 281-860-2533 or use any of the tools on this website.

Why Choose TexasUSDALoans.org

USDA Loan Specialists Available to Help You

Our USDA Loan Specialists are always available to help answer your questions. You can contact a dedicated USDA Loan Specialist through our website or by calling us directly.

A Simplified Process that cuts through all the clutter

From the very beginning, our USDA Loan Specialists will assist you in weighing your options, confirming your eligibility, and obtaining the documents required to get you to the closing table.

USDA Approved Lender

USDA Rural Development requires lenders offering USDA Loans to go through their approval process. Amcap Mortgage Ltd. is a USDA approved lender specializing in USDA Loans in Texas.

 

$0 Down Payment

Zero Down Payment

A USDA Loan allows the borrower to finance 100% of the home's value and purchase with $0 down. Other loan programs require 5-20% down.

Low Fixed Rates

Low Fixed Interest Rates

You get a 30 year, low interest fixed rate mortgage with zero early prepayment penalty.

Easier to Qualify

USDA Loans are Easier to Qualify

Qualifying requirements for a USDA Home Loans are similar to an FHA loan and requires no Mortgage Insurance.

USDA loans help make home ownership possible for a wider range of people.