|Featuring the USDA Rural Development Program|
Texas Rural Home Loans
TEXAS USDA RD MORTGAGE - QUESTIONS AND ANSWERS
How is your company related to the UDAD?
In most cases the USDA does not actually loan money for a home mortgage, they guarantee the loan against default. Texas Capital Mortgage is authorized to do USDA mortgages anywhere in Texas.
Why haven't I heard much about USDA rural development loans?
For the last few years there have been other mortgage programs that were popular and offered zero down payment and easy qualification. There was less use for the USDA program during those times. Now mortgage lending programs are much tighter and USDA RD is one of the few remaining programs with 100% financing and very favorable terms.
How much money will I need to close?
Every transaction is different. You will usually need to pay $400 to $500 for an appraisal before closing. You can ask the seller to pay all other closing costs as long as that is not more than 6% of the selling price.
Will the seller usually agree to pay my closing costs?
This is very common. It depends on the real estate market in your area and how motivated the seller is. Note that the appraisal will need to be equal or greater than the selling price for the closing cost seller contribution to work.
How large of a mortgage do I qualify for?
Usually the monthly payment should not be more than 29% of your gross monthly income. In some cases your total Debt To Income (DTI) ratio can go up to 49% of your gross monthly income. Please call us and ask for a free pre-qualification for a specific answer.
How good does my credit need to be?
If your credit score is above 620 you will have a good chance of qualifying. You should not have more than one payment that was 30 days late in the last year. Please call for a free pre-qualification.
What if I have NO credit in the credit bureaus?
You may still be ably to qualify using references for things like utility payments, rental history, monthly auto insurance, and other payment records.
Is private mortgage insurance required?
No, there is a one time 2% USDA guarantee fee (the government may change this fee). In most cases you will be able to add this to your loan if you do not want to pay the fee upfront.
How does this program compare to a FHA mortgage?
In most cases the USDA mortgage will be better than FHA if you qualify. USDA is 0% down and FHA is 3% or more down. Also FHA charges an extra 1.15 % fee added to your payment and USDA does not. The rate is usually similar or better with USDA.
How much is the finance rate and how much will my payments be?
Rates can change up or down until locked. Please ask a mortgae loan origionator for the current rate and a good faith estimate of total costs and payments.
What if I don't qualify for a Texas USDA rural development mortgage?
We have several other good programs available. Please see the ALTERNATE PROGRAMS page of call a loan officer for information.
How long does it usually take to close a rural mortgage?
This can vary, 4-6 weeks is typical.
If I am ready to get started, what is the first step?
You can go to the APPLY NOW page, or call one of our mortgage loan origionators and we can get started by phone.
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