USDA Loan Upfront & Annual Guarantee Fees Explained

Explaining the USDA's Upfront and Annual Guarantee Fees

The USDA loan’s annual fee is 1% of the loan amount. This fee funds the guarantee that compensates lenders if the mortgage should ever default. It is this guarantee that gives lenders the confidence to extend home financing to those who may not be eligible for conventional financing. All major government backed mortgages have a guarantee. With the VA loan, […] Read more »

How Your Household Income is Calculated for a USDA Loan

USDA Loans and Part Time, Overtime, and Bonus Income

For all those living in the property over the age of 18 their income is counted when determining effective income meets the 115% median income limit for a USDA mortgage. Once the USDA lender determines the income qualifies for a USDA mortgage, the borrowers then document their income and provide that documentation to their loan officer. USDA loans ask there […] Read more »

Fixed Rate Guaranteed USDA Home Loans

Fixed Rate USDA Home Loans

The USDA loan program provides two basic options when financing a home, a 30 year fixed rate term and a 15 year fixed rate term. It’s important to note that even though the 30 year fixed rate is the most heavily marketed, USDA lenders do have the option of adjusting the term to a 15 year. Why would someone take […] Read more »

DTI (Debt To Ratio) Requirements for USDA Loans

DTI Requirements for USDA Loans

The United States Department of Agriculture, or USDA, has a special program that allows mortgage lenders to approve homebuyers using a zero down payment loan. There are several requirements for the USDA product and not all mortgage companies are very familiar with this special program. What sort of requirements? Perhaps the biggest single distinguishing feature, especially when compared to VA […] Read more »