USDA Income Limits

USDA offers a no-down payment mortgage program which is available in rural areas (typically a town with population of 10,000 or less). USDA does not have loan limits, the program is limited by household income and if the property is in a USDA designated location. [Read more…]

USDA to reduce Guarantee and Annual Fees

2014-09-03_usdaEffective October 1, 2016, the upfront guarantee fee and annual fee (paid monthly) will be reduced with USDA mortgages. This new fee structure will take place until September 30, 2017, the end of the fiscal year for USDA.

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USDA Upfront Guarantee Fee Increase

2014-09-03_usdaUSDA has increased the upfront funding fee (aka “upfront guarantee fee”) by an additional 0.75 percent as of October 1, 2015.  From USDA:

On October 1, 2015 the upfront guarantee fee for purchase and refinance loans will increase from 2 percent to 2.75 percent.  The annual fee will remain at 0.50 percent for purchase and refinance loans.  This change is necessary to maintain the program’s operational cost structure, which requires no congressional subsidy support to offset credit costs.

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USDA Income Limits – Updated!

USDA has released new income limits effective April 1, 2015. USDA offers a no-down payment mortgage program which is available in rural areas (typically a town with population of 10,000 or less). USDA does not have loan limits, the program is limited by household income and if the property is in a USDA designated location.

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Changes to USDA Mortgages

2014-09-03_usdaUSDA offers mortgages with no down payment for homes that are located in designated rural areas to borrowers who meet household income limits. The mortgage rates are very competitive and the mortgage insurance (technically called “guarantee fees”) are very affordable. It’s truly a great program for those who qualify and are buying a home in rural areas, like Duvall, Enumclaw or Anacortes.

Recently, USDA issued Handbook 3555 with updated regulations for USDA mortgages. Here are just a few of the changes:

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USDA Income Limits for Washington State

USDA has published updated income limits for their zero down mortgage program which is available in rural areas. Other mortgage programs, like FHA or conventional, has loan limits which limits availability. USDA does not have loan limits, the program is restricted by household income. 

USDA offers a government backed program that allows zero down payment on homes that are in a designated rural community for families earning less than a certain income. A majority of Washington State single family residences (homes and condos) qualify…of course if you live in metropolitan areas like Seattle or Bellevue, odds are your home will not. However, if you’re considering areas like Duvall, parts of Maple Valley, Vashon or Bainbridge Island, it may qualify for zero down financing.

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USDA back up and running

usdaUSDA, which offers zero down loans for homes located in designated rural areas, was effectively shuttered during the government shutdown. Once the shutdown was over, USDA had a delay in getting their cogs moving at full speed. We’ve received word that USDA is back to “normal”.

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NAR fighting to keep current boundaries for USDA Zero Down Loans

There’s just 10 days remaining before the boundaries determining eligible properties for USDA financing are set to change unless Congress takes action. I shared with you USDA had posted the “future” boundaries on their website back in April. 

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