usda loans

[Anonymous]

I am looking to buy a house with my fiance very soon. The house we are looking at is USDA eligible and so is our income levels.

Is the usda loan with no pmi (but with updated monthly charge forgot what it was) still better than a conventional loan? We have 3.5 to put down on the price range of the house we are looking at. However if we did not have to put that down we can use it to pay off our credit cards which together is about 7 grand.

Also where do you even go to get a usda loan?

[Anonymous]

Looks like the broker my brother went through does usda loans. So I might be giving this guy a call.

I make 30,000 a year. Been with my employer for a year. However, I just got promoted to full time and my new salary. So basically last year I only made about 17000 dollars. I graduated college and got this job about 4 months later. So im hoping that the lender will excuse my short employment history because of that.

My finance is about to get a job at a hospital and is going to be making about 55,000 a year. She just graduated college about three months ago.

We both have no student loans. I have an auto loan of 25,000. She has no loans.

We both have excellent credit. Like I said together we have about 6 grandish in credit card debt.

Basic questions of mine are:

Does usda tend to be student friendly do those with short work history but working in their field. Such as my fiance only having two paystubs.

Does sellers get nervous when accepting any bids from usda preapprovals because they tend to take a little longer?

Do you think we have a decent chance at getting a mortgage with no issues?

USDA you pay no PMI but you pay a 3% fee or something every month? How does that compare to paying PMI ? And long term usda vs fha only paying pmi for 5 years? Over the term of the loan what do you really pay more to?

[Hammer23]

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@Anonymous wrote:

Looks like the broker my brother went through does usda loans. So I might be giving this guy a call.

I make 30,000 a year. Been with my employer for a year. However, I just got promoted to full time and my new salary. So basically last year I only made about 17000 dollars. I graduated college and got this job about 4 months later. So im hoping that the lender will excuse my short employment history because of that.

My finance is about to get a job at a hospital and is going to be making about 55,000 a year. She just graduated college about three months ago.

We both have no student loans. I have an auto loan of 25,000. She has no loans.

We both have excellent credit. Like I said together we have about 6 grandish in credit card debt.

Basic questions of mine are:

Does usda tend to be student friendly do those with short work history but working in their field. Such as my fiance only having two paystubs.

Does sellers get nervous when accepting any bids from usda preapprovals because they tend to take a little longer?

Do you think we have a decent chance at getting a mortgage with no issues?

USDA you pay no PMI but you pay a 3% fee or something every month? How does that compare to paying PMI ? And long term usda vs fha only paying pmi for 5 years? Over the term of the loan what do you really pay more to?

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You pay a 2% upfront fee (which can be financed into the loan) and .3% per year for the "guarentee fee". 

Example $100,000 Home Purchase 

Loan Amount $100,000 (102,040 with the 2% financed into the loan)

Yearly guarentee fee(this amount decreses each year as you pay down your loan)   $306.12 (added to your escrow payment $25.51 per month) 

Your "PMI" in this instance is $25.51 per month on an ongoing basis. It is recalculated every year based on your outstanding balance. This is much less expensive than almost every other PMI program I have seen. It is permanant meaning it doen't go away when the LTV goes under 80%, however

With FHA you would need 3.5% down (minimum) your upfront MIP (PMI) would be $1688.75  and your MIP (monthly PMI) is $100.52!

You pay almost 75% less in monthly PMI with USDA upfront, plus you don't need the 3.5% down. I would go that way if you can. If the PMI not dropping off at 80% bothers you, you could always consider refinancing into a conventional mortgage when your mortgage reaches the 80% mark.

[Anonymous]

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@Hammer23 wrote:

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@Anonymous wrote:

Looks like the broker my brother went through does usda loans. So I might be giving this guy a call.

I make 30,000 a year. Been with my employer for a year. However, I just got promoted to full time and my new salary. So basically last year I only made about 17000 dollars. I graduated college and got this job about 4 months later. So im hoping that the lender will excuse my short employment history because of that.

My finance is about to get a job at a hospital and is going to be making about 55,000 a year. She just graduated college about three months ago.

We both have no student loans. I have an auto loan of 25,000. She has no loans.

We both have excellent credit. Like I said together we have about 6 grandish in credit card debt.

Basic questions of mine are:

Does usda tend to be student friendly do those with short work history but working in their field. Such as my fiance only having two paystubs.

Does sellers get nervous when accepting any bids from usda preapprovals because they tend to take a little longer?

Do you think we have a decent chance at getting a mortgage with no issues?

USDA you pay no PMI but you pay a 3% fee or something every month? How does that compare to paying PMI ? And long term usda vs fha only paying pmi for 5 years? Over the term of the loan what do you really pay more to?

---

You pay a 2% upfront fee (which can be financed into the loan) and .3% per year for the "guarentee fee". 

Example $100,000 Home Purchase 

Loan Amount $100,000 (102,040 with the 2% financed into the loan)

Yearly guarentee fee(this amount decreses each year as you pay down your loan)   $306.12 (added to your escrow payment $25.51 per month) 

Your "PMI" in this instance is $25.51 per month on an ongoing basis. It is recalculated every year based on your outstanding balance. This is much less expensive than almost every other PMI program I have seen. It is permanant meaning it doen't go away when the LTV goes under 80%, however

With FHA you would need 3.5% down (minimum) your upfront MIP (PMI) would be $1688.75  and your MIP (monthly PMI) is $100.52!

You pay almost 75% less in monthly PMI with USDA upfront, plus you don't need the 3.5% down. I would go that way if you can. If the PMI not dropping off at 80% bothers you, you could always consider refinancing into a conventional mortgage when your mortgage reaches the 80% mark.

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very helpful! thank you. this definitely broke it down for my head to understand much easier.

[Anonymous]

Just to add to Hammer23's post....the USDA "PMI" will increase as of October 1, 2012 from .3% to .4%.  If you received a mortgage commitment on or after October 1, your new PMI will be .4%.