Common USDA Loan Myths

by Brian Mayer on July 17, 2012

I was talking to a Realtor the otherusda loan myths
day who was arguing with me that it takes 45 days
or longer to close a USDA loan.

I tried to explain that it was not true to no avail…

So please allow me to dispel a few misconceptions
about USDA loans and maybe share with you
a tip or two about USDA Loans.

Myth – USDA Loans take 45 – 60 days to close 
Truth – USDA is 1-2 days to approve loans right now
(I can close a USDA loan in as little as two weeks!)

Myth – USDA Loans are for farms or rural areas
Truth – Most of Maryland and Virginia are USDA Eligible Area

Click here to see the USDA area maps
Myth – USDA Loans are for low income borrowers
Truth – Calvert and Charles are 101k – 133k
St. Marys is 93k – 123k (combined houshold income)

Myth – USDA Loans have stringent guidelines
Truth – I can do them using only alternative credit,
620 credit scores, no money in reserves, and up
to 41/48 DTI ratios

Myth – USDA Loans are for first time home buyers only
Truth – Not at all, there are no benifits or penalties for
being a first time home buyer with USDA

Myth – FHA Loans are better for most buyers
Truth – FHA’s monthly MI is 4X higher than USDA.
USDA will give you a lower payment and no down
payment is required.

Myth – USDA can not be combined with CDA or
other down payment assistance programs

Truth – Not true most of the time

  • USDA Loans require No Down Payment
  • Up to 6% seller contribution towards closing
  • You can get money for minor (lender required) repairs
  • You can even roll closing costs into appraised value above seller help!

So there you go… usda loan expert

If you want a second opinion about your loan or you need a USDA expert, please call me 443-624-9398 or fill out the contact form to your right.

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