Joe Gonzalez -King Of Prussia Mortgages, FHA, JUMBO, VA, USDA and more: October 2011

Whether a million dollar loan or a first time home buyer, more Realtors, financial planners, borrowers and other business professionals bring their home financing needs to Joe than anyone else in King of Prussia and the Delaware Valley. They come to Joe for one main reason... Results!

USDA Updates – They now charge for the awesomeness!

USDA Updates – They now charge for the awesomeness!

In my last post I gave a few tidbits about USDA (Click here if you missed it - Kick butt 100% financing that you’ll probably qualify for).   WOW, I didn’t realize so many people would respond.  Good Great stuff guys.  So here are a few updates….

October 1, 2011 USDA Rural Housing Loan Changes:USDA Rural Housing king of prussia

USDA Rural Housing has been taxpayer-subsidized for years.  Long gone are those days.  The USDA Rural Housing Program will no longer be dependent on tax payer money (wish we could say the same about the big banks! Can I get an AMEN!!) To stay in business, they started charging for the awesomeness of the program (as if you didn’t know that was coming).  They not only charge mortgage insurance upfront now, but monthly as well for the life of the loan. (insert Homer Simpson like “DOH!” right here) Relax Homie, the upfront has gone down & the monthly isn’t bad.  

USDA Rural Housing mortgage insurance rates are:

  • For purchases, 2.00% upfront fee paid at closing, based on the loan size - down 1% from 3% total
  • For refinances, 1.00% upfront fee paid at closing, based on the loan size - no change
  • For all loans, 0.30% annual fee, based on the remaining principal balance - this sucks but just think – FHA is 1.15%!

Real life numbers for USDA Rural Housing:t Name

 USDA Rural Housing king of prussia example

Okay so paying mortgage insurance for the life of the loan isn’t cool but before you get your panties in a bunch, let’s bring it back into perspective:

  • FHA charges 1.15%, which would be $184 per month (you may insert Homer-like “DOH!” again)
  • 100% financing – this alone is worth it
  • The rates currently are in the high 3% to low 4% range
  • It’s 100% financing (yes I said this twice)
  • It’s now only 2% not 3% upfront so it takes a little of the bite out of it
  • You don’t need a 660 credit score
  • Did I mention it’s 100% financing?

USDA Rural Housing king of prussia exampleFor my local clients, check out just a few of the areas that the USDA Rural Housing Programs are available in:
Collegeville, Royersford, Evansburg, Trappe, Limerick, Schwenksville, Skippack, Oaks, Kimberton, Chester Springs, West Pikeland, Mont Clare, Birchrunville, Spring City ALL QUALIFY!!!  (Insert Homer-like WOO HOO!!!)

 So what’s your next step you say? (get ready for a shameless plug for the Joe Gonzalez Team at Meridian Bank)

 I’m so glad you asked! Give Joe Gonzalez from Meridian Bank a call. I’ll be happy to help you with your financing needs! :-) I hope you enjoyed the info!

For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia   FHA Jumbo Loan, Mortgage King Of Prussia

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Comment balloon 3 commentsJoe Gonzalez • October 24 2011 03:44PM
USDA Updates – They now charge for the awesomeness!
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