Costs of Purchasing a Home

The USDA loan is targeted at the lower and middle income people the fees are extremely competitive when you compare them with other payment mortgage programs. The two fees that are involved in a USDA loan can be paid over time and these are:

  • Up Front Guarantee – This is the first fee and that is figured by calculating 2% of the loan amount that is proposed and then adding the calculated figure to the loan balance to be paid over time
  • Annual fee – This second fee works in the same way as monthly mortgage insurance. This fee is tallied by calculating 0.40% of the principle balance that is left every year and then the amount is divided by 12 which is then added to each monthly payment

Other potential fees and costs associated with USDA mortgage are:

  • Discount points and lender origination fees
  • Appraisal fees
  • Inspection fees
  • Survey fees and pest inspection fees
  • Closing Costs such as State and Local Taxes
  • Recording Fees, Title Fees and Escrows

Difference between USDA and traditional mortgage

The main difference between the two includes:

  • USDA Loan FeesUnlike traditional loan programs USDA program require no down payment and you can finance 100% of your property value
  • The property that you are planning to purchase must be located in the area defined by USDA
  • Unlike traditional loans, investment properties do not qualify for USDA loans which means that the property which will be purchased under USDA home loan must be owner occupied
  • To qualify for a USDA home loan the borrower must meet the income restrictions of the county in which you are planning to buy the property, however this program does allow consideration for expenses like Child Care

Talk to a Specialist Today

Email us or speak with one of our USDA Loan experts today at 877-342-7449 and get the best USDA loan deal in the market.