First post and probably don't have much to add. I recently closed on a property and used the Gauranteed product and it was painless for the most part. USDA was the hold up once it was submitted for approval, I ended up having to call the director for my state for them to finally sign off on it.
One thing people need to consider is that by the end of this year USDA will be adjusting their eligible areas as the census data is processed. So if you're looking to purchase in an area that you know is no longer rural it would be in your best interest to start the buying process now before that area is no longer eligible.
Hi, I'm a first time home buyer and ran across this thread in a google search. I was just hoping to post the USDA loan specifics that I was given to see if it's a good deal and all the costs look reasonable. I really have no idea what I'm doing =P. I understand the interest rates and such that go along with mortgages, but really have no idea at all about what to expect as far as fees and if fees and rates are even negotiable under a USDA loan to begin with.
This is what I have been quoted thus far on a home where the asking price is $145,000 (no negotiating of the price has been done yet.)
Sale Price: $145,000
Closing Costs: $5040
-Credit Report: 75
-Funding Fee: 205
-Underwriting Fee: 305
-Flood Certification: 25
-Settlement Fee: 200
-Document Prep: 200
-Notary Fee: 25
-Title Insurance: 1140
-Title Endorsement: 175
-Recording Fee: 250
-Pest Inspection: 65
-Transfer Tax Stamps: 1450
-Home Inspection: 350
- *Optional: Closing Protection Letter: 75
**** The above fees are slighlty off by ~70 dollars when I added them up. I'm thinking the mortgage rep forgot to list something.
Prepaid Items: $5984
-12 month tax escrow: 1800
-30 Days Prepaid Interest: 426
-1st Year Homeowner's policy: 690
-2 months insurance escrow: 180
-USDA Upfront "MIP": 2959
-2 months "MIP" Escrow: 99
*** again these costs don't add up to the total in bold. I must be missing something because I doubt this guy is that bad at math??
Payment Breakdown (Loan Amount $147,959 @ 3.5% Interest and $1565 Required at closing)
I'm curious which route would be best for me to go? Conventional vs FHA
Base salary $90k, quarterly bonuses of $8-9k
Middle score of around 640 (bank requires a middle of 620 for conventional)
Purchase price $230k
Down payment between 5-10%
One 3 year old collection of $2500
What would my best route be to go? Let me know if you need more info...
With a middle score of 640, it is unlikely to be conventional. The only way to really know for sure is to ask a LO