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Mortgage Broker Los Angeles CA | Shannon Christenot 818-601-2231

As one of the city’s top mortgage brokers, I can connect you with competitive loans from reputable lenders throughout the metropolitan area. Call now (818) 601-2231

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What is a USDA Loan & Should You Get One?

June 17, 2020 by Shannon Christenot

Why Should You Opt to Get a USDA Loan?

For most first-time homeowners-to-be, the most difficult and painstaking process is applying for a housing loan. While most homes look flexible on paper, what throws people off are high rates for the down payment. For most people, they can afford to pay the monthly mortgage but are driven away by the upfront costs for the home.

While services such as VA loans cover down payment dues, for the most part, they are only available to those in service or veterans. However, an alternative exists for those who are looking for a nice place to live without requiring to be a combat veteran to avoid the upfront down payment costs. With USDA loans, you can secure a dream home with minimal requirements. Here’s what you need to know about it and why you should opt for a loan like this:

What Is A USDA Loan?

These loans are guaranteed by the United States Department of Agriculture, with the goal of providing affordable financing for homes in rural areas or suburbs. Let’s face it, living in the bustling cities with all the high rises screams extremely high real estate prices.

This is usually an unrealistic option for most first-time home buyers, as the prices for even just an apartment or a studio can be through the roof. With the big cities like San Francisco and New York City having prices that are insane depending on the districts you find yourself in, perhaps you will want to consider other options.

Why You Will Want to Secure A USDA Loan?

With a 0% down payment, you can use the excess money for other things such as home improvements, furniture, or even to start a business or invest. Although there are housing loans out there with low down payment rates, no is better than low. Additionally, you can get a house you dream of rather than being confined to a small space in an urban environment, which is a plus.

Another thing that makes these loans so attractive is that they often have lower loan costs. For example, let’s compare an FHA loan with a USDA one. For a $200,000 loan amount, FHA requires an upfront insurance premium that is 1.75% the amount, which is roughly $3,500 at closing or included in the loan balance. Additionally, there is an annual premium based on the equity amount, so if the down payment came out to 3.5%, the annual premium is 0.85%. That premium is an extra $140 dollars per month.

A USDA loan has an upfront guarantee of 1% of the loan amount, which is $2,000 at closing, or rolled into the loan. The annual guarantee comes out to 0.35% of the average unpaid principal balance each year. The initial premium would amount to around $60 per month, with a steady decrease each month as you work to pay the loan off.

With all this math, the basic thing you can take away from it is that USDA loans mean lower monthly payments for your house.

What Are Some of The Qualifications for A USDA Loan?

Like any loan, maintaining a good debt-to-income ratio is important, with a higher score making it easier to obtain loans. USDA loans are given to those who have a score of 640 or higher on the FICO scale. Having reserve income set aside to cover your payment in case of emergencies like job losses will help you obtain a loan as well.

USDA loans are designed to aid with home development for affordable housing in rural areas, and with most states having suburban areas readily available to live in, you are fortunate. When it comes to these loans, the adults in a household cannot be making more than 115% of the median income in the area.

Shannon Christenot for USDA Loans in Los Angeles

When it comes to owning your own home, a nice way to start is to apply for a USDA loan and live in the suburbs or in a rural area. These loans are a good way to save a lot of money and continue to have a spacious dream property in a peaceful and tranquil area.

I am Shannon Christenot and I am one of the top mortgage brokers in Los Angeles. I can assist you in finding the right home loans for you. Contact me at (818) 601-2231 to get pre-approved for a loan today!

Filed Under: USDA Tagged With: California, Los Angeles, USDA Loan Tips

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Shannon Christenot
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Jason Roderick Donaldson
Jason Roderick Donaldson
20:26 17 Nov 22
Shannon was extremely helpful, proactive, and available. We were out of the country, which presented unexpected difficulties, and she handled everything superbly for us on the ground. Way beyond the... call of duty.read more
ChrisJen Chun
ChrisJen Chun
01:49 10 Dec 21
Shannon is the best! She’s super responsive and is so professional and informative! She will walk you through the whole process and is able to answer any questions you might run into. She was even... available to answer a question we had during signing of the escrow docs.We also loved how she was able to provide different number scenarios and was able to paint the big picture for you. We would highly recommend her!read more
Michael Flancer
Michael Flancer
22:47 22 Nov 21
I am an experienced real estate investor and have been investing for over 30 years. I have completed at least 20 original purchase / refinances in my real estate career. I have worked with many... different mortgage brokers over the years and I must say that Shannon is at the top. She has completed 3 refinances and 2 purchase loans for me this year.She is cool under fire and her processor, Josh is awesome. They make a great team. She can provide loan options which are very competitive and mostly lower than rates that banks offer.Before you move forward with a bank or another lender, reach out to Shannon. You will not regret it.read more
Matt Glenn
Matt Glenn
02:05 07 Nov 21
Shannon is, without a doubt, one of the main reasons that we have a home right now. Especially in Los Angeles, the process of buying was so full of stressful, fast-paced steps — compounded for us... because of our demanding work schedules. Shannon made the process feel so manageable. She took the time to help us understand each step and advise us on how best to proceed. She never shied away from giving us an honest, realistic assessment of each offer and of our overall financial situation. Her experience was clear the whole time we worked with her, and I cannot recommend her highly enough. Thank you Shannon!!read more
joshua freedman
joshua freedman
19:43 29 Oct 21
There is not enough that I we could say about Shannon and her team. While most lenders come from the "cold hard math" side of things, Shannon exudes a wealth of knowledge along with a personal and... invested approach to ensure that you feel comfortable and informed every step of the way. Buying and selling a home is clearly one of the most critical decisions as well as the most impactful stresses one could have on their life. We could not be more thrilled to have gone through this process with Shannon as we were put at ease in a time that volatility and competition have plagued the home buying experience. Anyone who is looking for someone with a deep understanding of the market and loan funding who also takes a personal and sincere approach to their work should not hesitate to work with and refer Shannon Christenot as their lender.read more
Anthony Ridino
Anthony Ridino
16:36 29 Oct 21
I’ve been referring clients to Shannon for over ten years and she always does an amazing job! This last transaction she handled for close friend of mine in Calabasas was the most impressive of all!... My clients needed to sell their existing home to qualify for their dream home. When there current home fell out of escrow, it was certain they were going to lose their dream home; this wasn’t an option to let my close friends down. So Shannon and I quickly started to brainstorm on all the possible options to try and make this happen. Within 24 hours we came up with some option and found a path forward. Definitely not easy, but a viable path to make it work. In addition, she somehow got this particularly hard deal to be fully approved and cleared to close two weeks early. In my 18 years of f selling real estate, I’ve never experienced a win this big so quickly, and for some of the most important people in my life. Thank you Shannon for always knocking it out of the park!read more
Raz Terovsepyan
Raz Terovsepyan
23:02 11 Sep 21
I met Shannon through my sister in law 7 years ago when I was in the process of buying a house. She went above and beyond to make sure the transaction went smoothly. I just refinanced my house for a... better rate and she delivered it as promised. All and all had a great experience and I’m looking forward to working with her again in the near future.read more
Kristina Robbins
Kristina Robbins
00:07 10 Sep 21
We’ve worked with Shannon and her team three times and all experiences were stellar. The first was buying our first home and she walked us through the process and explained everything along the way... to help us get quickly up to speed. The second time we were going for a refi in maybe the most turbulent mortgage market ever as COVID hit. She guided us through all the hurdles and worked double time to satisfy all the lenders new requests. We got a rate a full percent lower. The third time we did another refi at another .5% lower and again she got it done in record time. I can’t recommend this team highly enough.read more
Craig White
Craig White
19:59 04 Aug 21
I've worked with Shannon and her team for several years now and they are top notch!! Very professional, always one step ahead, responsive personable and trustworthy. We have had several difficult... deals and Shannon always keeps her cool and gets the job done. Highly recommend!read more
Carla Lowe
Carla Lowe
19:51 04 Aug 21
My experience with Shannon was off the charts! I represented the buyer in a transaction and Shannon was amazing! When we wrote the offer she promised 10 day(!) loan and appraisal contingencies, as... well as a 21 day escrow! This helped my client get their offer accepted! But even better: Shannon delivered! She always quickly replied to my emails, she answered her phone, and was ALWAYS professional and helpful! I also loved that the emails Shannon and her team sent to escrow were detailed and thorough! I have added Shannon to my short list of lenders that I refer to clients!read more
Susan von Seggern
Susan von Seggern
00:55 04 Aug 21
Shannon was instrumental in making sure we could put a quick close into our offer and that our loan did indeed close on time! We couldn't have done it without her!
Audrey Cosenza
Audrey Cosenza
16:43 02 Aug 21
Shannon at HomePro is a consumate professional. I have spent many years in commerical real estate but needed help for my home loan. Shannon's service was outstanding. I got the best rate and was... appreciative of her calm demeanor through the process. I highly recommend her and her services.read more
Mimi M
Mimi M
17:28 31 Jul 21
Shannon is amazing! Fast, responsive and always professional. We’ve completed three financings with her and all three were seamless and closed on time or faster than promised.Shannon was always... available and clearly communicated what we needed to provide at all times. Her team was organized and fast as well. Instructions to escrow were super detailed and precise. These days, your ability to close quickly can be the difference between having an accepted offer or not, making Shannon a truly valuable resource.read more
Benjamin Rice
Benjamin Rice
23:35 22 Jul 21
Shannon was a dream to work with and made everything so smooth and simple. Thanks so much! Highly recommended.
Rowaida Bourji
Rowaida Bourji
17:22 15 Jul 21
Working with Shannon has been a pleasure! She makes difficult and not so pleasant processes like home loans and refinancing easy and a breeze. Her knowledge and experience is admirable. One of the... best aspects about working with Shannon among everything else is how quick,responsive,and clear she is from start to finish!read more
Sherry Apodaca
Sherry Apodaca
15:41 13 Jul 21
Thank you Shannon and everyone on you team.Once again you have help me in everything I needed to refinance my house.You and your team are very good and professional.I would be glad to share your... company with anyone interested in buying or refinancing.Sherry Apodacaread more
Kelvin Vu
Kelvin Vu
18:08 18 May 21
Cannot recommend enough
Brandi Carter
Brandi Carter
22:33 14 May 21
If you are looking to secure a loan or refinance, this is your woman, the best in the business! Shannon got me a great rate on my first home loan, and most recently a great rate on my refinance.... Throughout the process, she was attentive and informative and readily available to answer any questions I had. As an added bonus, she has an amazing personality and is very friendly and personable. Can't say enough good things about Shannon and highly recommend!read more
Tammy K. Billings
Tammy K. Billings
22:31 14 May 21
Shannon is the consummate professional. Providing excellent guidance through a stressful process. Moving quickly with access to great resources on a moments notice. And somehow manages to do it all... with a smile and grace. I cannot recommend her highly enough... she coached me through waiting for just the right moment to get the best rate possible!!read more
Jonathan Sumilang
Jonathan Sumilang
17:07 13 May 21
Was referred to Shannon by my realtor and couldn't be happier. Shannon was responsive with my calls, text and detailed emails. Even though there was a minor bump on the road due to appraisal issue,... we navigated that with ease with her guidance. A very quick close... highly recommended.read more
Frank Diaz Jr.
Frank Diaz Jr.
15:44 13 May 21
First off, Shannon Christenot rocks!!! Shannon made the whole process of securing our loan, all the way through to the closing of Escrow effortless. I would absolutely recommend her to family and... friends!read more
Brandi Carter
Brandi Carter
01:54 13 May 21
If you are looking to secure a loan or to refinance, this is your woman, the best in the business! Shannon secured an excellent rate for me on my original loan, and most recently on a refinance.... Through the process, she was attentive to my needs and readily available to address any questions I had. As an added bonus, she has an amazing personality and will make the process seamless. Can't say enough good things about Shannon and highly recommend!read more
Debra Strong
Debra Strong
23:44 17 Mar 21
Excellent Work
Gia Battocchio
Gia Battocchio
04:20 04 Mar 21
My husband and I just purchased our first home last month! We were referred to Shannon by our close friend and I am so thankful she was our guide through this process. Shannon was positive and... personable from the moment we spoke. She alleviated our concerns over securing a loan by reassuring us EVERY step of the way that we were on track. She always responded promptly and kindly to my numerous calls and texts, and her confidence was the kind that only comes from someone with years of experience. But for those of you who aren't looking for hand-holding and just want to get the job done, Shannon works so QUICKLY! She and her team moved things forward in a streamlined manner and we were closing escrow in no time. This is EXTREMELY important in a city like Los Angeles where you have to move quickly on your dream home because there are always 20 other offers. I can't say enough good things about Shannon. You would be lucky to work with her!read more
Veronica Perez
Veronica Perez
20:24 19 Feb 21
Shannon and the whole team at HomePlus Mortgage are A+! Knowledgeable, responsive and trustworthy. Highly recommended!
Brendan Bolton - Klinger
Brendan Bolton - Klinger
22:13 05 Feb 21
Shannon is amazingly talented and is great to work with. She is super-fast and has always gotten us the best rates. Over the past 10+ years, Shannon has helped my family complete 5 major loans: 1... primary residence; 2 investment properties; 1 refinance; 1 cash-out refinance. If you are getting a loan in California, you cannot do better than Shannon. Get in touch with her and do your deal with the confidence of knowing things will go smoothly. Thank you, Shannon!!!read more
Joe Torreto
Joe Torreto
23:24 15 Jan 21
Shannon was amazing and her team! She continued to provide us an updates and truly understand the stressed that an owner goes through. She is a great asset to the team, and could not have done this... very stressful journey without her help. Thank you very much and another refi in 5 years, who knows. Great job, Shannon! Happy New Year to All!read more
Andrew Kline
Andrew Kline
18:06 13 Jan 21
Shannon is amazing! She is the go to lender on all of my transactions! Always on the ball and very responsive!
Norm Page
Norm Page
15:41 16 Dec 20
Shannon and team did a yeoman's job pulling my re-fi through in these challenging times. I had had another loan officer trying to work through the underwriters for months on end to little to no... avail. Then I engaged Shannon on a local reference, and she unlocked the key to the underwriters, whatever it was. My re-fi came through with a fantastic rate saving us a ton every month.read more
Roxann Smith
Roxann Smith
18:45 22 Oct 20
Shannon was a delight to work with. very professional and personable. she made the whole process as easy as could be. couldn't recommend her higher.
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