USDA = 100% Financing

USDA Offers 100% Financing on Purchase and Refinance Loans

On a purchase loan, the loan amount can be increased above 100% to include closing costs if the appraised value exceeds the sales price.

USDA refinances are limited to existing USDA loans.  Streamline refinances are available without appraisals and are limited to paying off the balance of the loan only and closing costs cannot be rolled in.  Regular refinances allow for rolling in of closing costs based on the appraised value.

The property must be in a eligible zone and the household income must be at or below the limit for the area.

Give Nick or Jennie Garofalo a call at (410) 414-7334 for more information on USDA loans.  Funding for refinances is exhausted for this fiscal year but is expected to be replenished for FY13 in October.  Loan applications can still be submitted and underwritten but just cannot close until funding is available.

USDA Refinance Funds Exhausted for FY2012

On August 17, 2012, the United States Department of Agriculture (USDA) announced that Guaranteed Rural Housing (GRH) refinance funds will be exhausted by August 20, 2012.  Funding for these loans will be restored when Fiscal Year 2013 funding has been received by the USDA.  In prior years this has occurred in mid to late October.

USDA Purchase Loans Allow Closing Costs to be Rolled Into the Loan

The USDA loan program allows for closing costs to be rolled into the loan if the appraised value is greater than the sales price.  This is a great benefit for borrowers with limited cash reserves.  Under other loan programs, the maximum loan amount is limited to a percentage of the lower of the appraised value or the sales price.