USDA Loan Specialists
USDA Loans are mortgage loans that help make purchasing a home more affordable for those living in rural areas. The U.S. Department of Agriculture backs USDA loans in the same way the Department of Veteran Affairs backs VA loans for veterans and their families.
This government backing means that compared to conventional loans, mortgage lenders can offer lower interest rates. USDA loans are for families who demonstrate economic need, so your adjusted gross income can’t be more than 115% of the median income in the areas. You can find out if your income is eligible in the same place you check property eligibility. If you qualify, you can buy a home with no down payment, although you’ll still need to pay closing costs. To learn more about USDA Loans please contact the USDA Loan Specialists at Dovetail Mortgage today.
What is the best option for me?
When choosing a mortgage, you need to consider a wide range of personal factors and balance them with the economic realities of an ever-changing marketplace. That is why it is important to partner with the right mortgage broker in Braintree, MA that can understand your background. Individuals’ personal finances often experience periods of advance and decline, interest rates rise and fall, and the strength of the economy waxes and wanes. To put your loan selection into the context of these factors, consider the following questions:
- How large a mortgage payment can you afford today?
- Could you still afford an ARM if interest rates rise?
- How long do you intend to live on the property?
- In what direction are interest rates heading, and do you anticipate that trend to continue?
Frequently Asked Questions Regarding USDA Loans
Provided By Dovetail Mortgage: Your USDA Loan Specialists in Braintree, MA
The USDA Loan is a mortgage option for qualified rural homeowners. USA loans are issued by approved lenders and are guaranteed by the United States Department of Agriculture.
guarantee gives lenders more confidence in the borrower and gives them the ability to offer more favorable rates and terms.
USDA loans are available to both first-time and repeat homebuyers.
There is no maximum loan amount restrictions on USDA loans. Your maximum loan amount is based on your debts, ability to repay, and income.
There are 3 refinance options that the USDA offers to current borrowers: Streamline, Streamline-Assist, and Non-Streamlined refinance. The USDA does NOT offer a cash-back option.
The USDA loan program enables qualified borrowers to purchase their home without a down payment, which will save them thousands of dollars in upfront costs.
USDA loans have a one-time fee of 1% of the loan amount. There is also an annual fee of 0.35% of the loan amount that is financed into the monthly payments. USDA home buyers have the option to finance the 1% fee into the monthly payments if they wish.
USDA loan rates are typically lower than conventional mortgage rates due to its government insurance, AKA the USDA Guarantee.
USDA offers 15-year and 30-year fixed rate terms.