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!

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Buying and Financing Rental Property 2022 Event

July 2022 Lunch & Learn Event and Webinar for Realtors and Investors

Working with home buyers searching for a new primary residence is a totally different game compared to working with investors and rental property.  Sure, there are similarities, but what want-to-be home owners care about is different than what an investor cares about.  Frankly, for an investor, it’s all about the money and it should be.  When someone purchases a rental property they are essentially running a business.  If we can help them run a successful business and turn a profit they will likely come back and buy more properties.

There are lots of want-to-be investors out there and the hardest part is getting started.  We are going to help unravel the maze.  We will also look at long term planning.  Often just knowing what needs to happen to acquire the next property and the next one after that is one of the keys to success.  Owning rental property can be a great way to build wealth and we are here to help.

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