<h2 style="padding: 0px; margin: 1.8em 0px 0.6em; color: #111111; font-size: 1.25em; line-height: 24px; font-family: Georgia, 'Times New Roman', Times, serif;">Most Frequently Asked Questions About USDA Loans</h2><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;">

<p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;"><img title="USDA Loan" class="alignright size-full wp-image-706" src="http://www.usdaloanhome.com/rural-development/USDA-Loan.jpg" height="220" alt="rural development loan" width="295" style="padding: 0px; margin: 0px 0px 1.5em 1.5em; float: right;" />Q</strong>. <strong style="padding: 0px; margin: 0px;"><em style="padding: 0px; margin: 0px;">How much money do I need?</em></strong>

<p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. There is no down payment required however there are closing costs and you will need an earnest money deposit.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">Closing Costs</strong> - Are negotiated in the contract. The seller can contribute up to 6% and the lender can provide a credit based on the interest rate.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">Earnest Money Deposit</strong> - Typically $500 or $1000 used to secure the contract. It is given to the Realtor when you make an offer as a good faith deposit so the sellers lock into the terms and take the house off the market.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">How many years is the loan for?</strong></em></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. 30 year fixed only. Your principle and interest payment can not rise and there is no early payment penalty.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">Is there mortgage insurance?</strong></em></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. Yes both monthly and an up front fee that can be rolled into the loan.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">Monthly MI</strong> is calculated as .3% of the loan amount paid annually. As an example on a 250k loan amount .3% is $750 split up over 12 months is $62.50 per month. Compared it FHA with 3.5% down its 4x less per month.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">Up Front MI</strong> or "Guarantee Fee" is 2% of the sales price. As an example a 250k loan would be 5k so the actual loan amount will be $255,000.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">Do you need to be a first time home buyer?</strong></em></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. No, there is no penalty or benefit to being a first time home buyer with a USDA loan however you can not own another home and obtain a USDA loan without special circumstances i.e. relocating for a job.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">Are USDA Loans available everywhere?</strong></em></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. No, there are location restrictions. Check with the USDA website for maps of your area. Eligible areas are determined based on census data of population density.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <strong style="padding: 0px; margin: 0px;"><em style="padding: 0px; margin: 0px;">Are there income requirements?</em></strong></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. There are two income calculations on a USDA loan.</p><ul style="padding: 0px; margin: 0px 0px 1.5em 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><li style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">The Income Limit</strong> - Calculated using everyone living in the house and is capped based on the county the house is located in.</li><li style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">Debt To Income Ratios</strong> - The USDA recommended debt to income ratios are 29/42 however there are several factors that allow a borrower to go higher - Credit/Money In Reserves/Length Of Job History/Rent or Mortgage payment history/current rent or mortgage (payment shock.) The highest I have seen are 39/48</li></ul><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"> <strong style="padding: 0px; margin: 0px;">Q</strong>. <em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">Where do I apply for a USDA Loan?</strong></em></p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">A</strong>. There are two types of USDA loans, direct and guaranteed.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><strong style="padding: 0px; margin: 0px;">USDA Direct Loan</strong> - Can only be obtained directly through your local USDA office.</p><p style="padding: 0px; margin: 0px 0px 1.5em; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; line-height: 24px;"><em style="padding: 0px; margin: 0px;"><strong style="padding: 0px; margin: 0px;">USDA Guaranteed Loan</strong></em> - Can be obtained through most local mortgage companies in USDA eligible areas or by calling <strong style="padding: 0px; margin: 0px;"><span style="padding: 0px; margin: 0px; color: #ff0000;">443-624-9398</span></strong></p><h3 style="padding: 0px; margin: 1.8em 0px 0.6em; font-weight: normal; font-size: 1.25em; line-height: 24px; color: #111111; font-family: Georgia, 'Times New Roman', Times, serif;"> To learn more click for USDA Loan Guidelines</h3></p></p>