You don’t need to buy a home in a cornfield to use the USDA Rural Housing loan, but the property does need to meet their rural definition, and many areas qualify.
USDA loans, like most others, require mortgage insurance. Effective October 1, 2014, the monthly mortgage insurance on a USDA loan will increase to .50%. This is up from the current .40%.
On a sample $100,000 loan amount, the new mortgage insurance costs would be $41.87 a month, up from the current $33.49 a month.
While no one likes the increased costs, USDA loans still have some of the lowest mortgage insurance costs of any home mortgage program, and is still an amazing value.
Learn more about USDA Rural Development Loans in MN, WI, and SD