06-18-2010 01:21 PM
I was approved and have the approval letter in my hand for a USDA loan.
My mid score with TU is 618. (EQ 616 EX 630 LO pull)
I understand you can get a USDA approval under 620 if you have rental history but I don't so still don't know how I could be approved.
However they are offering me 5.25%. Is this a good rate?
I've never bought a home before so any help is appreciated.
06-20-2010 12:01 AM
Is this a direct or a guaranteed loan?
06-20-2010 12:37 PM
That is not great but it isnt horrible either
Because of the lower score you are probably being hit with some added adjustments making for a slightly higher rate
If you can get it done with those scores the rate is what it is
06-21-2010 03:15 PM
Actually another lender gave me 4.75% today.
On other question please. The builder said they would give me $3500.00 in buy down money to buy the rate down. He said it would be bought down from 5% to 4.75%. My lender told me I really didn't need the buy down because her rate is 4.75 % as it is. Shouldn't I still let the buyer give me that buy down money to lower from 4.75%?
I've never purchased a home before so I really need all the advice I can get.
06-22-2010 12:20 AM
Yes in theory you should be able to buy it down further than the 4.75%, however some lenders have a minimum interest rate that is offered, this lenders may be 4.75%. I am looking at a couple rate sheets now and one doesn't get any lower than 4.5% for USDA, another one goes down to 4.25%.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO