Florida Home buyers interested in the 100% USDA mortgage often ask if they can put money down on their loan? The short answer is yes. USDA Rural Development is 100% financing, however, buyers can certainly put in a down payment (5%, 10%, etc) if they like. One note, if a home buyer has the “financial means” to do a conventional loan (like 20% down payment) they must to a conventional type mortgage. This will generally make sense anyway because conventional loans with over 20% down payment do not require the mortgage insurance (PMI) costs.
USDA home buyers should also remember the USDA (like all home loans) will require around 3-6% for closing costs and required pre paid escrow items. USDA will permit closing costs to be paid by the home sellers or rolled into the loan up to the appraised value. Read more here. However, buyers with some savings can pay this on their own thus reducing their loan amount, and monthly payment.
Questions? Just submit the quick request form on the right side of your screen or visit www.UsdaMortgageSource.com
Serving all of Saint Johns, Flagler, Volusia County ( Daytona Beach, St. Augustine, Palm Coast, Flagler Beach, Ormond Beach, Bunnell) USDA Mortgage Source is Florida 100% home loan leader.