Rural USDA Home Loan Cost Cut Significantly

Good news for those looking to buy rural homes – the USDA Home Loan has just become cheaper!

Starting on October 1st, the beginning of the 2017 fiscal year, the USDA’s home loan’s will have cheaper upfront and monthly payments. The Upfront Guarantee Fee will drop to 1.00% (from 2.750%), and the Annual Guarantee Fee will similarly drop to 0.35% (from 0.50%). This comes as a pleasant surprise, considering the percentages have been increasing since 2011. This drop reflects the increasing health of the home and mortgage industry in America as it recovers from the crash back around 2008.

This loan is popular for first time home buyers as it is usually cheaper than the typical FHA Loans, even before this change in pricing. There is 100% financing, so there is no down payment required for the loan, eliminating a daunting hurdle for first time buyers. This loan is also slightly easier to acquire, with only a Credit Score of 640 required for eligibility.

While this loan is only for “Rural” areas, this term is quite flexible. About 97% of the US land mass is considered eligible. Good news for Vermonters, apart from the Burlington, South Burlington, Essex Junction and Winooski areas, the entire state is eligible for this loan! To find out if your address is eligible for this loan, you can find out on their interactive map here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp

This loan isn’t as readily known as the FHA loans, and sometimes are not even offered. It could help tremendously if you check to see if you are eligible for the USDA loan instead, as can save you hundreds, if not thousands of dollars!

For additional information, please contact our loan officers through our website: vermontmortgagecompany.com, or give us a call at 802-863-2020. Feel free to stop by our office as well!

Other Links and Sources:
http://themortgagereports.com/20723/usda-rural-development-mortgage-guarantee-fee-reduced
http://teammovemortgage.com/2016/04/30/2016-2017-usda-funding-fee/
http://www.usda.gov/wps/portal/usda/usdahome
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Vermont Mortgage Company is VHFA's 2023 Top Lender
Vermont-Mortgage-Company-135-College-Street-Burlington-VT

Vermont Mortgage Company

135 College Street
Suite 2
Burlington, Vermont 05401
802-863-2020

Directions »

Mortgage News & Helpful Tips

The Benefits of Having a Mortgage

Warm greetings from all of us here at the Vermont Mortgage Company! We know we talk a lot about mortgages and their different types, but what exactly are the benefits of a mortgage? Amazingly enough, it's more than just a way to pay for a house over a period. There...

read more

10 Home Buying Myths

Many times, so many of us think things are common knowledge, but instead they are just a mere misrepresentation of the truth. Like when we were little and grandma would tell us that if you keep crossing your eyes like that they will get stuck. However, as we get old...

read more

Mortgage Redo – What Does Refinancing a Mortgage Mean?

Greetings from all of us here at your local loan office! With the transition of the seasons finally upon us, it seems like an appropriate time to talk about something else that would be good transition for finances before the holiday season reaches near. Let’s dive...

read more