What Are The Benefits Of A USDA Home Loan?
South Carolina USDA loans are structured just like conventional ones via Fannie Mae and Freddie Mac. Where they differ, though, is with respect to down payment requirements and mortgage insurance.
Which allows a home buyer to finance a home for 100 percent of its purchase price. The U.S. Department of Agriculture will assess a two percent mortgage insurance fee to all loans, and the cost may to be added to the loan size at the time of closing, as can the 2000 loans no credit check costs of eligible home repairs and improvements.
You can’t do that with a Fannie Mae or Freddie Mac loan.
Another “RD Loan” advantage is that its annual mortgage insurance fee is just 0.40% annually, no matter how large or small of a down payment.
This is less than half of the private mortgage insurance charged via a comparable conventional loan, and up to one-fourth of what the FHA will charge (except for participants in the FHA HAWK program for reduced MIP).
Furthermore, because USDA home loans do not have a specific loan size limitation, home buyers can theoretically borrow more money with a USDA mortgage than via conventional, VA or FHA routes.
Loans insured by the U.S. Department of Agriculture are available as 30-year fixed rate mortgages only, and come with their own USDA Streamline Refinance program.
How Do I Qualify For A USDA Home Loan in South Carolina?
Similar to FHA home loans, rural housing loans aren’t made by the USDA. Rather, the USDA insures mortgage lenders making USDA Section 502 loans against loss. Читать далее “Unlike conventional loans or FHA Loans, USDA South Carolina loans have no down payment requirement”