2016 USDA / Rural Development Changes!
HUGE Announcement!!!!
The USDA made some major improvements to the Single Family Housing Guaranteed Loan Program also know as a Rural Development loan. The upfront guarantee fee changed from 2.75% to 1% of the loan amount and the annual fee changed from .5% to .35% of the average scheduled unpaid principal balance for the life of the loan. What’s that mean????
Here is a 150,000 example:
| Old Program | New Program | |
|---|---|---|
| Upfront Fee | $ 4,241.63 | $ 1,515 |
| Monthly Fee | $63.75 | $43.84 |
Now the really cool thing is the RD loan program is once again in many cases much more attractive to home buyers than an FHA loan. Lets run a quick comparison.
FHA VS RD $150,000 price, assuming 4% interest rate, $200 for property taxes, & $80 for insurance
| FHA | Rural Development | |
|---|---|---|
| Principle & Interest | $703.15 | $723.36 |
| Insurance | $80 | $80 |
| Taxes | $200 | $200 |
| Mortgage Ins. (PMI) | $101.71 | $43.84 |
| Total payment: | $1,084.86 | $1,047.20 |
| Down Payment Required | $5,250 | $0 |
| So RD saves $38 per month and is zero down! | ||
For more information feel free to reach out to me or download this flyer!
Latest Blog Post
June Lunch and Learn: Deals with Reels
Level Up Your Leads: Join Our “Deals with Reels” Event!
Ready to turn those scrolls into sales? 🚀
In today’s fast-paced digital world, social media, and especially Reels, have become a powerhouse for connecting with potential clients and generating real estate leads. Are you leveraging this dynamic tool to its full potential?
Join us for an insightful event, “Deals with Reels,” where we’ll unlock the secrets to using short-form video content to grow your real estate business!