100% Financing with a USDA Loan in Tobyhanna
If you plan on buying a home in Tobyhanna or Tobyhanna Township check out the USDA Loan Program.
Located in Coolbaugh Township in Monroe County, Tobyhanna is a town of about 7000 that sits within the scenic Poconos. Home buyers is Tobyhanna can buy a home without any down payment using the USDA Mortgage Loan program.
Next to Coolbaugh Township is Tobyhanna Township. Tobyhanna Township is home to about 9000 residents in several neighborhoods. The town of Tobyhanna is not located in Tobyhanna Township. Sometimes this can be a slight confusion to those unfamiliar with the area.
The good news is that although they are not the same place, both Tobyhanna and Tobyhanna Township are both eligible for the 100% USDA Loan.
The USDA Mortgage Program is also known as a Rural Development Loan. This program allows for 100% Financing, so there is no down payment required. Even better, you can also finance in any closing costs if the appraised value allows.
For example, if you have sales price of 180K and let’s say closing costs are 6K, you can finance 186K and roll the closing costs into the loan. The key to making this work is that the home would need to appraise for at least 186K. Another option to have closing costs covered is to negotiate for the seller to pay them. USDA loans allow the seller to pay up to 6% of the sales price. In most cases, this results in no money needed at closing from the buyer.
Both Tobyhanna and Tobyhanna Township are zoned eligible for the USDA Mortgage Program.
USDA Eligible Neighborhoods in Tobyhanna Township
Estates at Emerald Lakes
Fawn Ridge Estates
Lake Naomi/Timber Trails
Locust Lake Village
Old Farm Estates
Pocohanna Cabin Colony
Pocono Lake Preserve
Stillwater Lake Civic Association
Stillwater Lake Estates
Timber Lake Estates
The rest of Monroe County, Pennsylvania is also eligible for a No Down Payment USDA Loan. To find out about other areas of Monroe County, Pennsylvania that are eligible visit the Monroe County USDA page.
Disclosure of possible terms
(i) The amount or percentage of the downpayment.
USDA Requires No Down Payment. USDA Guaranteed Mortgages are available with 100% Financing.
(ii) The terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment.
USDA Loans are only available as 30 year fixed rates with no balloon payment, no negative amortization, and no prepayment penalties.
(iii) The “annual percentage rate,” using that term, and, if the rate may be increased after consummation, that fact
Example: $180,000 sales price with USDA Guarantee Fee Financed into the loan amount would result in a final loan amount of $181,800. A 30 year fixed interest at 4.5% with an Annual Percentage Rate (APR) of 4.758% would result in a Principal and Interest payment of $921.15. The USDA Annual Fee of .35 of the loan amount would result in a monthly Annual Fee amount of $52.50. This monthly Annual Fee amount of $52.50 would be collected with the monthly mortgage payment. Assuming $3000 per year for property taxes and $840 per year for homeowners insurance would result in the a total monthly mortgage payment of $1293.65. This is a scenario to illustrate possible payments. Interest rates fluctuate with market conditions. An interest rate can be locked at time of application. Loan must close with the lock in period. Your interest rate may be different than the interest rate used in this scenario. The property taxes and homeowners insurance used in this scenario are hypothetical and will vary according to the property. USDA Guaranteed Loans are only offered as 30 year fixed interest rates, which means your rate can never increase after closing.
Monroe County USDA Household Income Limits
Deductions to reduce your USDA Household Income Calculation
$480 for each minor child living in the household
$480 for any student living in the household who is not on the mortgage application
$400 for each disabled household member who is not on the mortgage application
Documented Child Care Expenses for household members under the age of 13
Documented Medical/Disability Expenses for household members age 62 or older (this deduction is allowable if the expense exceeds 3% of the household income)
Benefits of the USDA Mortgage Program
USDA Mortgages do not require a Down Payment
USDA Mortgages allow the Seller to pay up to 6% of the sales price towards the Buyer’s closing costs
USDA Mortgages allow the closing costs to be financed into the loan amount, if the appraised value supports the needed loan amount
USDA Mortgages are only offered as 30 year fixed mortgages
USDA Mortgages can be paid ahead of schedule or can be paid off at any time with no prepayment penalties
USDA Mortgages are not only offered in rural areas
USDA Mortgages are also available in many large towns and suburbs of cities