USDA Interest Rates

This is arguably the hottest topic in the entire mortgage universe, “What is the lowest interest rate I can possibly get?” That, ladies and gentlemen, is the $64,000 question and yet the answer changes every day; even multiple times a day! However, the never ending quest for this answer leads most people to question the validity of FHA vs. Conventional vs. USDA vs. VA in terms of finding the lowest rate.

The truth of the matter is that yes, you can shave fractions of a point by bouncing between these loans and seeing which one posts the lowest rate at the time you look at it. What determines your interest rate more is the type of mortgage and length of time your mortgage runs for. I speak specifically about a fixed vs. an ARM vs. an Interest Only loan, or one of the several other possible programs available. These individual programs affect rate more than the people sponsoring it.

The biggest question is which program is best for you based on your own individual situation. Are you a member of our military? Do you live in a rural community? How much of a down payment can you afford if any? Based upon these and several other factors, you may qualify for a loan program you never even knew existed getting you not only a low rate but also a low monthly payment with a larger budget for a house!

Want to know more? Call one of our mortgage professionals today to find out what loan program suits you best and how you can lock the lowest rates of the day, or possibly even the hour! Hurry!

USDA Funding

There has been a lot of talk about how USDA is consistently up and down in terms of funding. A strong feeling that USDA could run out of money all together has been brought to the attention of the U.S. government. There is good news on the horizon for those of you that live in more rural areas of the country and qualify for USDA loans.

In April, the House Financial Services Committee voted unanimously to approve HR 5017 – the Rural Housing Preservation and Stabilization Act of 2010. The bill is designed to ensure funding for homeowners who want to get a USDA loan. Under the new bill, lenders will pay up to a 4 percent premium for the guarantee at the time of the funding of the loan which will then enable the financing of the program to be self sustaining over time. For the Fiscal Year in 2010, the bill authorizes up to $30 billion.

UDSA loans are extremely popular with those who qualify, thanks to their 100% financing and no mortgage insurance. USDA has nearly tripled in popularity from last year, so it is important that you call First Option Mortgage as soon as possible in order to secure your USDA loan before time runs out!