Comments on: The USDA Rural Development Loan Program: Top 10 Things Borrowers Need to Know

By: Kevin Sandridge

Kevin Sandridge — Mon, 30 Jan 2012 16:49:29 +0000

There is room for repairs via USDA as long as the value is there. I do not believe repairs can be structural.

By: Ashley Atkins

Ashley Atkins — Fri, 27 Jan 2012 20:15:29 +0000

Thanks for the info Kevin. I qualify for an RD loan. The home I want to purchase has an unfinished basement that I want to finish for my mom. Is this an eligible rehab costs?

By: Kevin Sandridge

Kevin Sandridge — Fri, 09 Dec 2011 14:46:04 +0000

Hey Sharon – the USDA Rural Development loans pay out at 100 percent. You still have to cover buyer closing costs and pre-paids (which include taxes, 1 year’s of homeowner’s insurance, and other fees). This comes to about 3 to 5% of the loan amount. Sellers can contribute towards some of your costs here. One thing to mention – if your appraisal (which you pay for out of pocket up front = $400 or so) comes out above your loan amount, it is possible to finance in some or all of your closing costs/pre-paids depending on how much over the appraisal is. Does this help?

By: Sharon laramie

Sharon laramie — Fri, 09 Dec 2011 03:42:21 +0000

i’m qualified for a rural dev. loan , not sure what that means, i know no down payment, and the insurence thing, not sure about and do they (rural loan) pay for the loan and i pay for the loan rate ins.and what else. it sounds like that, from what im gathering.my loans is upper 90′s just want to know in plain english. thanks

By: Kevin Sandridge

Kevin Sandridge — Mon, 28 Nov 2011 14:32:45 +0000

Ney Neel – at this time, rates for USDA mortgages are in the high 3s to mid 4s. Better credit scores obviously getting better rates.

By: Neel

Neel — Mon, 28 Nov 2011 01:58:08 +0000

What are the going rates for a USDA loan now?

By: Kevin Sandridge

Kevin Sandridge — Mon, 21 Nov 2011 15:00:08 +0000

@Rachel – it is advisable that you go into any loan requiring the home to be a primary residence with the full intention of really making it your primary residence. This said, life changes, jobs change, etc. Be open and honest – it’s always the best policy.

By: Rachel

Rachel — Thu, 17 Nov 2011 20:53:23 +0000

Great post – you actually did a better job of explaining this than most documentation I’ve found from USDA themselves. I have a question regarding USDA loans – I understand that one of the requirements is that the home is your ‘primary residence’. How long does the home have to be your primary residence? If for the life of the loan, what are the options for refinancing so that one could move out of the home and rent it to a tenant? I’m looking into FHA and USDA loan programs – obviously the USDA program is attractive as it’s 100% financing. However I’m unsure of my long-term status – I may HAVE to move for a job about 2 years from now. If I can’t sell the house at that point – what would my options be for moving out and renting the house? Would I have available options to refinance to get out of the USDA program (and thus the residence requirements)? I really appreciate any feedback you have. Thanks again.

By: Kevin Sandridge

Kevin Sandridge — Mon, 26 Sep 2011 13:24:04 +0000

Hey Brenda – actually, USDA is log-jammed right now, as they’re facing a deadline coming up where they’ll start charging a type of mortgage insurance fee similar to what you see with FHA loans. We have seen loans of late requiring multiple extensions, as there is no way to contact the USDA underwriters directly to prod things along. Unfortunately, all parties involved (buyer, seller, mortgage loan originator and lender) are at the mercy of USDA’s timeline.

By: brenda

brenda — Fri, 23 Sep 2011 14:23:28 +0000

How long does it take from time is submitted to usda to approval from them?