What you'll pay
Earnest money, credited back at closing.** Inspections and the appraisal,** paid early.** Closing costs:** title, lender, recording, and Florida's mortgage taxes, documentary stamps of $0.35 per $100 on the note and a 0.2% intangible tax.** Prepaids:** your first year of insurance and escrow deposits.** The upfront guarantee fee,** usually financed.
Ways to cover your costs
Compare programs in gifts and seller help by loan.
Seller concessions: sellers can contribute toward your closing costs, generally up to 6% of the price.** Financing costs:** if the home appraises above the price, some closing costs can be included in the loan.** Lender credits** in exchange for a slightly higher rate.** Florida assistance** like Hometown Heroes, which works with USDA. See Florida down payment assistance.
Your monthly payment
Principal and interest, property taxes, insurance, the annual guarantee fee, and HOA or CDD dues if any. In Florida, insurance and CDD assessments are the usual surprises.
USDA payment and cash to close
Estimate for a 30 year fixed USDA loan with the upfront fee financed. Get real quotes.
Almost nothing out of pocket
Courtney bought a new build in an eligible community south of Orlando. The builder paid most of her closing costs, and her upfront guarantee fee was financed.
Her earnest money came back at closing, so her out of pocket was the inspection.
Frequently asked questions
How much do I need to close on a USDA loan?
Often very little. Seller concessions, builder incentives and financed costs can cover most of it.
Can the seller pay my USDA closing costs?
Yes, generally up to 6% of the price.
Can closing costs be financed with USDA?
If the appraisal exceeds the price, some can be included in the loan.
Is there monthly mortgage insurance on USDA?
Instead, there's a 0.35% annual guarantee fee paid monthly.
Can I buy down my USDA interest rate?
Yes. You can pay points for a lower rate, or take a lender credit. See the true cost of a mortgage.
Do I get my earnest money back with USDA?
It's credited toward your costs at closing, often coming back to you when the seller covers your closing costs.