Yes, it’s possible, however, lenders are looking for stable income when you apply for a mortgage so there are some key points to be aware of if you are in the midst of a job change at the same time … Continue reading →
For a very long time, although people could legally work in the pot industry in states where pot had been legalized, those working in the pot industry have not been able to use their income to qualify for a mortgage. … Continue reading →
Identifying what is and is not acceptable income when a Borrower has more than one job whether part time or seasonable can get sticky! On more than one occasion, I’ve had calls from clients I had done a pre-approval on … Continue reading →
In the lending world, there is often a fear of private roads when in fact, not all private roads are treated the same. Each of the traditional loan guidelines have varying guidelines which I’ve outlined below. FHA defines access to … Continue reading →
Program Announcement – May 28, 2015 Please be advised the Housing Finance Commission expects to announce funding for a below-market House Key Opportunity Program on or about June 24 2015. A formal announcement will go out upon program launch. The … Continue reading →
Help low- and very low-income applicants who do not qualify for the Section 502 Guaranteed Loan Program by advising them about the Section 502 Direct Loan Program.
While your tireless efforts have resulted in numerous homeownership opportunities through the Section 502 Guaranteed Loan Program, there are times when you cannot assist low- and very low-income applicants through the guaranteed program. When these applicants generally demonstrate a willingness and ability to pay their debt obligations but lack sufficient repayment ability for a guaranteed loan, you can still lend a helpful hand by advising them about the Section 502 Direct Loan Program, which is a subsidized mortgage program that can enhance an applicant’s purchasing power.
Direct loans are made directly by USDA, Rural Development and are available to households whose adjusted income does not exceed 80 percent of the area median. Eligible applicants can obtain modest and affordable housing by taking advantage of the direct program:
No down payment requirement.
Fixed promissory note interest rate that considers the Treasury benchmark interest rate. (The rate in effect for March of 2015 is 3.00 percent.)
Payment assistance that reduces the borrower’s mortgage payments to an effective interest rate as low as one percent.
Standard loan term of 33 years.
We ask that you encourage these applicants to contact their local Rural Development office using the link below to learn more about the direct program and obtain an application for assistance.