Int. Rate Decrease for USDA Direct Loans 3/1/15

[Anonymous]

I just got THE BEST news in my inbox from USDA Rural Development!

February 23, 2015 

Interest Rate Decrease for Single Family Housing Direct Programs

The following interest rates, effective March 1, 2015, are reported as follows:

Section 502 Direct – Program Loans           currently 3.250%     will be 3.000%    (this is us!)

Section 502 Direct – Non-Program Loans          currently 3.750%     will be 3.500%

Section 524 Housing Site Development Loans – Non-Self-Help        currently 3.250%    will be 3.000%

[Lemmus]

...thank you ...I may have to reconsider and go direct ...right now the best conventional USDA rate I've been quoted is 3.5% ...0.5% over 30 years is a pretty big "convenience " fee even though I normally hate dealing with any goverment entity.

[StartingOver10]

Wow! What a fabulous rate - congratulations! You should never have to refinance that loan!

[DaveInAZ]

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@Anonymous wrote:

I just got THE BEST news in my inbox from USDA Rural Development!

February 23, 2015 

Interest Rate Decrease for Single Family Housing Direct Programs

The following interest rates, effective March 1, 2015, are reported as follows:

Section 502 Direct – Program Loans           currently 3.250%     will be 3.000%    (this is us!)

Section 502 Direct – Non-Program Loans          currently 3.750%     will be 3.500%

Section 524 Housing Site Development Loans – Non-Self-Help        currently 3.250%    will be 3.000%

Currently being processed for pre-approval of USDA Direct in Virginia
Submitted pre-qual via email 1/14/15 -- USDA did a single hard credit pull 1/23/15 -- Invited to apply 1/30/15 -- Submitted app. via email 1/31/15 -- Selected for processing 2/17/15 -- Snail-mailed requested documents and payment for credit check 2/20/15

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Good news! So you're working directly with the USDA? Is it through the local USDA office? I looked at their list of lenders and called one about getting a pre-approval. They immediately wanted last 2 years tax returns, last 2 pay stubs, sent by email, and that's not going to happen to someone I've only spoken to over the phone. I'd much rather work directly with the USDA.

I'm selling my 10 acre property w/manufactured home, no options for a cash out refi, and I'm getting near retirement age & too much to keep up with. I want to buy a smaller home w/city sized lot in a nearby small town. I'm looking at a USDA mortgage w/no down payment as then I can use most of the equity in my current home to fund my woefully underfunded retirement account.

[Anonymous]

Yep, we're going directly through the USDA at a local office. From what I've read, there are pros & cons to both. With the Guaranteed loan, the process can go faster because you don't have to deal with the potential delays associated with a lack of funding, but the qualifying process will likely be stiffer due to lender overlays. The Direct loan is easier to qualify for compared to the Guaranteed, but that leaves you buying a home at the speed of government. For us, it's worth the hassle to go direct. I hope you find success with the program as well, Dave! Have you learned much about it or do you need some links?

[DaveInAZ]

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@Anonymous wrote:

Yep, we're going directly through the USDA at a local office. From what I've read, there are pros & cons to both. With the Guaranteed loan, the process can go faster because you don't have to deal with the potential delays associated with a lack of funding, but the qualifying process will likely be stiffer due to lender overlays. The Direct loan is easier to qualify for compared to the Guaranteed, but that leaves you buying a home at the speed of government. For us, it's worth the hassle to go direct. I hope you find success with the program as well, Dave! Have you learned much about it or do you need some links?

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Hi - Thanks, but I've booked marked the Single Family Housing Direct Loan main page. I just confused that the list of lenders is for the guaranteed loan program, now I realize that for the direct loan program you just apply directly through your local USDA office. Especially with the lower interest rate in March I'd rather try the direct loan first. Right now I have time, home has been listed for a couple weeks and no offers yet, but I was thinking over the weeekend I should look into getting pre-approved/qualified for a new mortgage as once I accept an offer and current property goes into escrow I'll need to be able to move fast on a new home. So I started looking here and foiund a couple threads about the USDA mortgage programs. I called the local USDA office yesterday a couplke times & just got voicemail, I try again this afternoon and if I still can't get a live person I'll just stop by tomorrow, a day off for me.