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!
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