Comparing Conventional Home Loans to USDA Mortgages in Stockton If you’re considering purchasing a home in a rural or suburban area, there may be more financing options to consider than conventional home loan such as USDA home loans. So how do these loans differ from conventional loans? Read on. • Applicants for USDA home loans must have a minimum 640 credit score – 640 is also the minimum for a conventional loan. However, the higher the score, the better the interest rate on the mortgage. • Income limit depends on the location of the property – if the income of all adult occupants in the home is greater than 115% of the median income in that area, you won’t be eligible for a USDA loan. Conventional loans have no income limits. • No down payment is required – lenders can provide up to 100% financing on USDA loans. Although you can put down as little as 3% on a conventional loan, you’ll be required to pay PMI unless you can put down 20%. • No PMI is required on USDA loans – however, there is a 1% upfront guarantee fee required at closing. Furthermore, there is also a 0.35% annual fee required on the loan balance that is paid monthly. Remember the right mortgage lender can help determine what type of loan is a better fit for your financial needs. H.O.M.E. Lending 1919 Grand Canal Blvd A6, Stockton, CA 95207 Hours: Monday-Friday 8am-6pm Saturday-Sunday: Saturday-Sunday:CLOSED https://www.google.com/maps?cid=4791781880556229538