Wisconsin Mortgage Advice

The USDA (United States Department of Agriculture) home loan was created for low income families looking to buy a home in rural areas. This program has become more and more popular in recent years, because of the tightening of lender guidelines with conventional home loans.

There are many benefits of a USDA Wisconsin Rural Housing home loan, but these are the ones that makes this program stand out from the rest.

100% Financing. No Down Payment Required

The USDA Rural Housing mortgage loan still allows you to buy a home with no money down. It's one of the only programs still available that allows 100% financing. This is a great benefit, because you can buy a home with very little money out of pocket. This leaves more money for home improvements and savings for future repairs of anything breaking down in the home.

No PMI (Private Mortgage Insurance)

Conventional mortgages require a PMI payment, in addition to the mortgage payment, if you don't have a down payment of 20%. With USDA Rural Housing mortgage loans in Wisconsin, you do not have to pay for PMI. Even if you finance 100% of the purchase price, you will not have PMI as part of your payment. This is a huge benefit, since it keeps your mortgage payment low, while allowing you to qualify for a larger mortgage loan.

Low Interest Rates

Even though you don't have to put any money down with USDA Rural Housing mortgage loans, you will still receive a lower interest rate. Depending on your situation, typically, the interest rates are not much more than 0.5% higher than conventional mortgage loans. This is a great benefit in addition to not having to come up with a down payment and not having to pay PMI. A lower interest rate will save you tens of thousands in interest payments over the life of the mortgage term.

Just these 3 benefits alone will put you in a better position to buy an affordable home.

Learn more about the details of the Rural Housing home loan in Wisconsin…