Reply
Regular Contributor
Posts: 209
Registered: ‎01-31-2012
0

USDA Loan Cap

Hi everyone,

I need your help as usual, I went ahead and applied for a mortgage loan for a new built, and the builder told me I could use my own lender, but require verification of my qualification from their bank (Sun Trust). I called a Broker and was pre-approved for 412k for a USDA Guaranteed loan and with the added (Guarantee fee) mortgage Insurance the loan amount is about 420K.  Today, I called the builder's bank (Sun Trust) and they approved me for 410K and told me everything checked out. However, they want to know how they could earn my business. First they gave me 3K credit which could go towards closing cost and their fees are 650.00 dollars. The Broker’s fees came up to 1100.00.  My questions are:

  1. 1.    What should I be looking for in terms of fees when comparing the two?
  2. 2.     the Sun Trust LO mention that there is a cap on USDA guaranteed loans which means my loan could not exceed 417k with the guaranteed fees/mortgage Insurance added. Is this true?? Please feel free to help. Thank you all.

Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


Take the FICO Fitness Challenge
Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: USDA Loan Cap

I know of no cap, you just can not go above income limits

 

I'd compare both loans and take the cheaper one.

Regular Contributor
Posts: 155
Registered: ‎05-13-2012
0

Re: USDA Loan Cap

I do believe that there is a cap, but what I would be more conserned with is what your monthly payment would be on one vs the other.. How much are you putting down, if you are not putting down 20% (which Im assuming you are not because you want to do USDA and not conventional) then I would say that USDA may be better, main reason being that you dont have such high PMI on USDA.. The PMI on FHA and or conventional (with less then 20% ) could be quite high and can make a difference of several hundred dollars monthly. Thats what I would ask about.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.