Did You Know that You Can Qualify for a USDA Loan Texas?
Today we’re gonna talk about FHA and USDA Loan in Texas for the year, 2019 and Here’s What You Need To Know.
And we’re getting started right now!
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FHA loans & USDA Loans in 2019 what you need to know.
Buying a house with an FHA loan or refinancing to FHA loan could be very very advantageous.
There’s a lot of good points to the FHA loan and I’ll go over just a few of them.
First and foremost, it only requires three and a half percent down payment I know I saw a study almost 3/4 of people think you need 20% down.
But for an FHA loan you only need three and a half percent down.
The FHA loan is a very good loan because I came about, you know, in the ’30s after the crash of ’29, and back in those days people had to put down at least 50% of the property have a balloon payment so it really cornered off how many people can actually buy a house so this allowed more buyers to buy more real estate that’s why we kinda have the robust market we have today.
So again 3.
5% down lower FICO scores you can go as low as 500 FICO some lenders will go down that low from 500 to 579 is 10%down whereas a 580 or above the only 3.
Also since it is FHA is insured, you know since you paid a funding fee and mortgage insurance you know that’s one thing you pay for it allows for very low interest rates so compared to conventional vs FHA your interest rate will be lower because the the risk to the lender is insured with FHA mortgage insurance.
Also FHA loans will allow a higher debt to income limit so I’ve had some FHA loans go as high as 56% so uh you know usually at 43 45 was that was the cut off what a lot of lenders will have an overlay for that.
We go all the way for as long as we can get approval.
So I’ve had a lot of FHA loans that are you know over 50%that would have never gotten approved anywhere else but our company so that’s one thing.
Some of the drawbacks about FHA loans, they do require, you know, there’s some property requirements, you know , they you know, and they’re not as big as as you would think.
They just require have it be livable like you can have have any wood rod or anything of that nature of their owner-occupied only so you do not for fixer-uppers so but there is an FHA program for fixer-uppers called the 203K.
You know we’ll go over that in a different different conversation so but for a normal FHA loan you have a new good property requirements it’s good for you as the buyer because you can have a lower FICO lower down payment things like that.
FHA loans allow for all gift funds I’ve had some FHA loans where my client got a grant from the city and they paid like a hundred dollars they’re actually paid nothing at closing because we funded the appraisal and they paid nothing.
So you know FHA loans allow some some very creative financing options if you want to learn about your FHA loan scenarios you know give me a call or go to usdaloaninfotexas.com
Put in your info and I’ll get back in contact with you and as always you want to learn more about mortgages at the home buying process.
Hi this is Scott Hastings with Mortgages byScott, powered by On Q Financial.
You might wonder why I'm standing in the middleof a field and that's a good question.
The reason is I'm talking about USDA loanstoday.
Although this looks like a very rural areaI'm only really about a mile and a half from downtown Davidson.
A lot of people wouldn't think that Davidsonwould have any areas that are USDA eligible but there really are.
A lot of people give me a all looking fora loan where they don't have to put any money down and there's no mortgage insurance, andthat is a USDA loan.
USDA loans are great, the only thing is thatthey are not eligible for all borrowers because of income requirements or caps on householdincome, and they are not available on all properties.
The income requirement is going to be basedon the number of people that live in the house, not just the number of people on the loan.
Most loans are going to go by who is on theloan, so in this case if you have 3 people who live in the house, but only 1 person isgoing to be on the mortgage, the income is only going to be considered, as far as qualifyingfor the loan itself, by the person who's on the loan.
But USDA is going to count the number of peoplewho live in the household.
So if a husband and wife both work, but onlythe husband is on the loan, and if their income together is less than the maximum householdincome limit for that USDA area then they are good to go.
But if together their income exceeds the maximumincome limit for that area then unfortunately they wouldn't qualify.
Also not every home is going to be eligiblefor a USDA loan.
And there's not really a map where you canjust look at it and say "Oh that whole area is USDA eligible".
You have to go to the USDA website and youcan put in the address of the property and it will tell you whether it's a USDA eligibleproperty.
You can also go in there and type in the amountof monthly income the borrower has and see if that household income exceeds the maximumincome requirement.
There are some tips and tricks on gettingqualified for a USDA loan where you might not think that you would normally be eligible.
One is a mortgage credit certificate and certainthings like that so if you have any questions at all about a USDA loan please give me acall.