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100% Financing on USDA Home Purchases in Connecticut

Posted on February 16, 2015 · Posted in Connecticut First Time Mortgage, Connecticut Home Purchase Mortgage

 

USDA loans are one of the best options for those looking to buy a home. When comparing a USDA loan to an FHA loan the savings can be substantial. Using a $200k loan amount and assuming both have the same interest rate a USDA loan will be roughly $70/mo less than the FHA loan for the PMI payment (and better yet – USDA offers 100% financing whereas FHA requires 3.5% down).  Also the monthly Mortgage Insurance Payment on a USDA reduces each year as the loan balance decreases (the FHA Mortgage Insurance does not).

A few more key features of USDA loans.

  • 100% financing. You are able to borrower the higher of the purchase price or the appraisal. This could help roll in more closing costs allowing a buyer to limit the out of pocket costs.
  • Flexibility with debt ratios. USDA loans allow for borrower to have a back end debt ratios up to 47%. Meaning a potential buyer could qualify for more house.
  • Fico scores 620 and above.

These are just a few of the benefits of the USDA loan program. If you have any questions do not hesitate to reach out to me.

 

craig picCraig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS  398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com

 

 

FHA Disclosure

NMLS# 117273, Northeast Financial, 860-788-7237

The principal and interest payment on a 203,500 30 year FHA fixed rate loan at 3.25% on 96.5% loan to value is 1,025.99 with 0 points due at closing.  The APR is 4.491%.  Payments include a one time upfront mortgage insurance premium (MIP) at 1.75% of the base loan amount and monthly MIP is calculated at .85% of the base loan amount.  The .85% monthly MIP is required for a specific period of time regardless of your down payment or equity in your home.  The principal, mortgage insurance, and interest payment does not include property taxes or home owner’s insurance premiums, which will result in a higher actual monthly payment.  Rates current as of 6/26/17