USDA loans are one of the best options for those looking to buy a home. When comparing a USDA loan to an FHA loan the savings can be substantial. Using a $200k loan amount and assuming both have the same interest rate a USDA loan will be roughly $70/mo less than the FHA loan. Also the monthly Insurance on a USDA reduces each year as the loan balance decreases.
A few more key features of USDA loans.
100% financing. You are able to borrower the higher of the purchase price or the appraisal. This could help roll in more closing costs allowing a buyer to limit the out of pocket costs.
Flexibility with debt ratios. USDA loans allow for borrower to have a back end debt ratios up to 47%. Meaning a potential buyer could qualify for more house.
Fico scores 620 and above.
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These are just a few of the benefits of the USDA loan program. If you have any questions do not hesitate to reach out to me.
Craig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS 398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com
