Mortgage Interest Rate
The interest rate on this mortgage is another winning factor. Most
100% LTV loans in the past were considered sub-prime loans with considerably
higher rates. This USDA rural development mortgage is not a sub-prime loan! The interest
rate is based on market rates. The maximum is either one (1), the
FNMA 90-day, A/A plus 60 basis points rounded to the nearest 1/4%. OR two
(2), the lenders posted VA rate. These interest rates are
unbelievably low when you consider that it is a 100% loan to value
mortgage with VERY flexible credit guidelines. Don't be fooled by
the fact that it is a rural development mortgage. Yes, the property
must be in an approved location but that doesn't mean the boon docks! If
I were a buyer with a median income I would go to the Rural Development
site and find out what areas are approved for this loan and find a home in
that location. You would be surprised at what you will find.
There is a link to their site on our property eligibility page. Before
you go there, read about all the other benefits of this loan on our site.
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