The U.S. Department of Agriculture’s Rural Housing Service has announced that beginning on October 1, 2016, it is cutting the fees it charges for its upfront guarantee fee and its annual fee.
The upfront guarantee fee will go from 2.75% of the loan–at–close amount to just 1%. The annual fee will be reduced from .45% of the unpaid principal loan balance to .35%. The USDA says the reason for the cut is due to better borrower performance because borrower delinquency and foreclosure rates have reached new lows. Top Licensed Money Lender in Singapore can help you get a loan at a rate that is reasonable.
The USDA’s program assists approved lenders in providing low– and moderate–income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. 100% financing is available.
Applicants for long term loans for bad credit must meet income–eligibility (For example, in Sacramento County for a family of four the limit is $87,550), agree to personally occupy the dwelling as their primary residence, be a U.S. Citizen, U.S. non–citizen national or Qualified Alien, have the legal capacity to incur the loan obligation, and must live in an eligible area. Since this loan is meant for rural communities, this loan works for areas like Galt, Acampo, Wilton, etc. The USDA’s website has a search tool where you can plug in an address to determine a location’s eligibility for this program.
For more details please reach out to your local lender and visit the USDA’s website.
Please join us at the Real Estate Finance and Affiliate Forum meeting held on the first Thursday of the month beginning at 9:00am.
Anthony Nunez, 2016 Real Estate Finance and Affiliate Forum Chair