Tag Archives: USDA

LOOKING TO BUY A NEW HOME, BUT YOUR NEW JOB HASN’T STARTED YET?

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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 →

POT TALK: LENDABLE INCOME OR NOT

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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 →

NOT ALL PRIVATE ROADS ARE TREATED THE SAME

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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 →

USDA SINGLE FAMILY HOUSING GUS UPDATES

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USDA Single Family Housing

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.

http://www.rd.usda.gov/contact-us/state-offices

 

Thank you!

USDA: SINGLE FAMILY HOUSING ORIGINATION UPDATES

USDA: SINGLE FAMILY HOUSING ORIGINATION UPDATES

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In the event that you have a USDA loan in your pipeline or are writing up an offer using USDA for your financing type, please take note of the critical dates that may impact on-time closings in the USDA updates … Continue reading →

DO YOU QUALIFY FOR A USDA NO DOWN PAYMENT MORTGAGE?

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While most people think of the US Department of Agriculture as a Federal agency that works with farmers or stamps meat, there is a home loan program under the umbrella of the USDA otherwise known as Single Family Housing Guaranteed Loan Program.

The main objective of this mortgage program is to provide affordable zero down financing for moderate income families in “rural” areas or areas of low population density.

Key notes of this program:

  • There are defined income limits by household size
  • The purchase price limit is the conforming loan limit in your area
  • There is no down payment required although you may put money down if you so choose
  • You can negotiate for the Seller to pay all of your closing costs
  • There is both an upfront guaranty fee paid to USDA as well as a monthly guarantee fee which is much lower than a mortgage insurance premium would be
  • The home itself may be single family, an approved condo, townhome or new construction
  • The home and property may not be “income producing” or be deemed to have that potential which brings about a whole host of other criteria
  • No barns or significant outbuildings
  • Not in a flood zone
  • No manufactured homes
  • Not on a historic register
  • Not sub-dividable
  • 1 power meter only

If your household income meets the requirements and the home is located in an eligible area, this is one of the best mortgage programs available today!  Great 30-year fixed interest rates and it is not limited to first time homebuyers!

Give me a call today to identify whether you may qualify for this great program!