BIG NEWS FOR USDA RURAL HOUSING MORTGAGE LOAN

In major news, the USDA recently reduced it’s funding fee from 2.75% to 1.00%.

According to D. Shane Whitteker, owner and chief broker at State College based Principle Home Mortgage, this fee reduction will mean a lot to anyone who qualifies for a USDA mortgage.

“This is really significant,” Whitteker says. “That 1.75% difference can mean a big savings for prospective homeowners.”

In other great news for State College home buyers, Whitteker says the USDA has also reduced their monthly mortgage insurance factor for calculation.

“The previous factor was .50% which is calculated on a yearly basis and then paid out monthly,” Whitteker says. “This factor has been reduced to .35%. Overall this provides significant savings to a home buyer that may qualify for a USDA loan.”

Many factors come into play in the approval process including a maximum amount of income that is allowed to be earned to qualify for this mortgage product. The home must also be in an area that qualifies.

“The good news is that most areas outside of a city qualify,” Whitteker notes.

Check in with State College based mortgage broker Principle Home Mortgage today and find out if this mortgage product fits your needs.