USDA Loan Interest Rates
502 Rural Development Guaranteed Loans are backed by the United States Government. This is why lenders do not have to add major risk adjustments to their pricing like they do on conventional and FHA loan products. This results in competitively low-interest USDA Loan interest rates. Eligible borrowers find that rates are generally lower with the USDA loan program when compared to conventional loan programs.
How are These USDA Loan Interest Rates determined?
There are multiple factors that determine what a borrower will pay in interest. The main factors include your credit score, debt to income ratio, and loan to value.
Borrowers with excellent credit, low debt to income ratios, and cash reserves will receive the most advantageous rates.
If your credit isn’t in perfect shape, don’t stress, you can still get a great rate with the USDA home loan.
It is important to note that the market conditions play a vital role in your mortgage rate. Market conditions change daily, which can drastically affect your mortgage rate.
Locking in Your USDA Loan Interest Rate
Once you’ve identified the house you wish to purchase and have entered into a contract for that property, your lender will help you figure out what your rate will be.
In most cases, the lender will have a better forecast of your rate after an underwriter has reviewed your loan. Most lenders cannot lock a rate longer than 60 days.
It is important to note that some lenders will try to entice borrowers with unbelievably low rates that are virtually impossible to qualify for.
Calculate USDA Loan Interest Rates with the USDA Mortgage Calculator
We only work with lenders that have a proven track record of great service and ongoing training of USDA loan guidelines and procedures.