We live in Texas, and we found a new home in a USDA approved area and the builder has pre-qualified us (based on USDA guidelines) for the home.
Are interest rates different based on credit scores with USDA? I will be going down to see visit with the mortgage person on monday... and I want to be sure I get the best interest rate, if is can differ?
I know closing cost can vary widely by the mortgage companies... anyone know about the interest rates?
Thanks for all your help!
Have a GREAT day!
For the most part you'll see interest rates vary by .125-.250% from USDA lender to USDA lender. With the same lender you could get different interest rates depending on what your score is as well - most lenders minimum is 620 or 640, but if you have a 660 or 680 sometimes you get about .250 better in price, and with a 720+ it can be .500 better in price... meaning for the same rate that someone gets with a 720 score for no points, someone with a 620 would have to pay 1/2 point (1/2% of the amout they are financing). This price variance is much greater with conventional financing.
Here is a blog post I am fine tuning that may help you understand that concept a little better.