USDA Loan Program Gets Funded

The Single Family Housing Guaranteed Loan Program of the U.S. Department of Agriculture, better known simply as USDA, has been funded for the 2011 fiscal year. While the program never stopped, there were certain delays while the funding became official. Now that funding has been set for FY2011, qualifying home purchases can use USDA loans to buy the property with no money down. 

Generally borrowers may obtain a loan to purchase on an owner-occupied home that is located in a designated rural area.  A designated rural area is defined as an area that has a population of 10,000 or less. Communities with a population of 20,000 or less can be considered “rural” if located outside a metropolitan statistical area (MSA).  Areas such as Kyle, Liberty Hill, and Hutto are USDA eligible.  Contact us at info@missionmortgage.com for the complete list of USDA eligible rural areas near Austin.

The USDA has also announced additional changes to the guarantee fee structure, which includes the guarantee fee for purchase transactions of 3.50% (increased from 2.00%), and the guarantee fee for refinance transactions is 1.00% (increased from 0.50%). Borrowers must have a minimum credit score of 620, non-traditional credit is no longer allowed, and the appraisal validity period has been reduced to 120 days (from 180 days).  If you have any questions about the program, please feel free to contact us at info@missionmortgage.com.

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About missionmortgage

A full-service professional mortgage banker providing lending in Texas for over 25 years. Our main office is located at 901 S. Mopac Expwy, Barton Oaks V- Suite 120, Austin, TX 78746 with branches in Lakeway, Houston, and Sealy. Mission Mortgage has been ranked as a Top 10 Mortgage Company in Austin for the past 7 years (Austin Business Journal).
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