(Closed) USDA home loans???

posted 3 years ago in Home
Post # 17
Member
429 posts
Helper bee
  • Wedding: May 2019 - York, ME

I just purchased a house through USDA loan in June, and I’m so happy I did! I think in all, I spent less than $1000 up front to buy the house, which included the inspection and a structrual engineer’s assessment.  The seller paid for all closing costs. The only thing with USDA is that you can’t remove the PMI once you have 20% equity like you can with an FHA.  You pay about .5% a year in PMI insurance, and a larger percentage at closing/rolled into the loan.  Our purchase price was $157,000, total loan amount came to $161,000, and we pay $933/mo in mortgage, taxes, and insurance, and my interest rate was 3.5%.  Let me know if you have any questions! I did so much research, it’d be nice to help someone else out! 🙂

Post # 18
Member
2942 posts
Sugar bee
  • Wedding: May 2014

RedHeadKel :  If you had no equity, and a hardship that didn’t allow you to make your payment, selling your property to avoid foreclosure or short sale would be impossible.  If you have equity and a hardship, you are in a better position to sell prior to foreclosure without needing a short sale.  You are on the hook for the full amount of your mortgage when you sell, no mater if you can make the full mortgage back from a sale.  

Post # 19
Member
2942 posts
Sugar bee
  • Wedding: May 2014

co_katherine :  FHA no longer allows removal of PMI at 80%.  FHA requires life of loan MI or 11 years depending on your equity at purchase/refinance.  Just FYI.  Only loans through Fannie and Freddie allow early removal of MI.  

Post # 20
Member
944 posts
Busy bee
  • Wedding: November 2012

We bought our home 4 years ago with a USDA loan. 0% down, our total monthly mortgage with insurance/taxes built in is less than $1,000. It is well within our means to pay for now and we have money in savings for emergencies. 

We did have to provide a $1,000 escrow deposit which we got back after closing. I have no idea if that’s typical or universal, but just thought I would mention it!

The process was really easy; we pre qualified, any home in our area of interest qualified for the loan so we didn’t have to pick through what would/wouldn’t qualify. If we had to do it again I would do it the same way!

Post # 21
Member
56 posts
Worker bee
  • Wedding: October 2015

co_katherine :  I know your post was several yrs ago but my husband and I are about to pull the trigger on a USDA loan. It’s the best decision for us. I have been trying to estimate what our payment would be for a home we are buying for $152,000. I think it would be close to yours.

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