USDA Loan - USDA Mortgage - 11 Facts - USDA Loans- USDA Home Loan 2020

USDA Loan - USDA Mortgage - 11 Facts - USDA Loans- USDA Home Loan 2020

hey this is chris Trapani the mortgage pro you 
know there are such things as usda loans zero   down payment loans they are created by the u.s 
department of agriculture and what basically   happens is these loans offer you so many wonderful 
options and i'm going to give you 11 facts about   usda loans fact number one usda loans require zero 
down payment item number two you're going to be so   excited when i tell you this there actually is no 
minimum credit score on a usda loan now the truth   is if you're really low in the 500s you're going 
to have a hard time getting approved with zero   percent down but as 640 fico score it's readily 
available and easy to get usda fact number three   usda is designed for rural areas you know even 
if the property has acreage it's designed to   be away from major cities and be in a more 
quiet serene type of suburban neighborhood   item number four you know usda loans are 
designed to have the lowest interest rates   they are at the bottom they're at fha and va they 
are the cheapest cheapest programs it's amazing   as far as the interest rate and remember you're 
still putting zero down fact number five you know   on fha loans and va loans except for when we have 
a disabled vet on the va side there are funding   fees or upfront mortgage insurance fees and with 
a fha loan it's 1.75 percent on a va loan it could   be as high as 3.6 on the second use and that could 
get really expensive on a usda loan it's only one   percent it's the cheapest funding fee of all the 
government loans fact number six on an fha loan   you're standardly going to pay a pmi rate mortgage 
insurance of 0.85 a year so as an example for   every hundred thousand dollars you borrow it would 
be 850 a year and we divide that into 12 months to   figure out what the payment would be obviously 
if it's a 500 000 loan multiply that by five   but a usda loan has only a 0.35 percent pmi rate 
that's amongst the lowest in the industry whether   it's private or government it's the cheapest you 
can get usda loan fact number seven this loan is   not for everybody it is from the median to low 
income earner basically 115 of your area income   is the max income limit and because of that it's 
also going to max out on how much you can borrow   so it's based on those two things what's the max 
in the area that will allow you to qualify and   what would that qualification allow you to borrow 
that's how you know how much you can borrow in   a given area fact number eight this is only for 
owner-occupied properties this is not so you can   put xero down and get yourself a rental and rent 
it out this is to live in for you and your family   fact number nine you must move into the house 
within 60 days of the close see you can't say   hey i'm gonna work on the house for the next six 
months 60 days that's the rule usda fact number 10   get approved for a usda loan how does that work 
well with me and with just about any lender in the   country you fill out an application you provide 
credit information you're going to provide income   information and we're going to provide banking 
information how much money do i have et cetera   and the lender is going to work on a pre-approval 
for you it takes an hour usda fact number 11   and this one's really exciting closing costs can 
be thousands of dollars sometimes six eight ten   thousand dollars for a loan and most borrowers 
have to either pay it out of their pocket   or get the seller to pay and right now in today's 
market sellers aren't paying for anything well the   great thing is usda you can often finance the 
closing costs hey thanks for watching if you   enjoyed this please give it a thumbs up and you 
could always subscribe to see all my other videos   now if you want to get started you can very simply 
fill out an application at   click the apply button it's really easy to 
get started and let's fire your landlord you

Qualify for USDA loan

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