Mortgage Lender Company El Paso TX | USDA Loan Info | (888) 464-8732

What are the requirements for the USDA program in El Paso? So that’s going to be looking at a 640 minimum credit score requirement.

There is a income requirement too when applying for a USDA Loan El Paso.

So basically the income requirement is about 78,000 if you’re in a family of 1 to 4 if you’re in a family of 5+ that’s gonna go up to about $103,000 on the income limit.

equity loan rates

The big requirement for USDA is that it’s property specific.

It’s got to be in a USDA Approved Zone. How much down payment does this program require?

It’s actually 0% down payment which is Great!

Ok Awesome, and how much does the average home buyer come in with out-of-pocket?

So because your down payment for a USDA Loan in El Paso is covered you’re just gonna have to come in with again your prepaid and closing cost So if it was a $300,000 purchase.

mortgage assistance

you’d be looking at about $7,500 cash for keys to get in the home.

What type of home buyer is the USDA Loan program Ideal for? So this is going to be ideal for the home buyer that’s looking for a property in those specific areas.

Ideally it’s properties that are going to be USDA Eligible rural zones.

So not right in the middle of the city, but maybe if it’s more on the outskirts, on a little bit of land, lower tax rate areas that’s probably going to be a property that’s eligible and that would be ideal because that one would probably qualify OK, Fantastic.

What is a USDA Home Loan?

I bet you’re wondering, what is a USDA home loan?

Designed with the residents of more rural areas in mind, the United States Department of Agriculture designed its loan program to enrich rural communities by providing affordable home loan options to low-income households that may not be able to secure home financing through other means.

Who has time to stop and smell the roses? You don’t, and this isn’t even a rose.

refinance loan
What are the requirements for the USDA program?

So USDA has a few interesting requirements First of all, you’ll need to have at least a 580 credit score Some lenders require a 620 credit score.

Your household income has to be under the county maximum Like a lot of down payment assistance programs. This is based on family size So 1 to 4 is one category and then 5 and above is a higher threshold for qualifying

What’s unique about this one is the home has to be within a designated area.

mortgage qualification

So, Typically what that means is.

NOT within a metropolitan area So within our area here (Riverside county) Our local cities around her don’t qualify But we only need to go 10 miles away to where there’s an open area where there’s Several homes that qualify.

USDA stands for United States Dept of Agriculture But it’s NOT a farm loan.

Specifically, they don’t finance this program for farms in El Paso.

It has to be a Single Family home in the El Paso area, without a barn structure on the property.

Then it also has some home price limitations.

loan lenders

The Threshold is a little bit lower than say an FHA loan for the loan limits.

Ok, and how does this program differ from other Down payment programs?

So it’s different because it’s not really a down payment program but it allows financing up to a 100% of the purchase price And it’s interesting because you can actually use this program with 1 or 2 of the other programs.

If you need closing cost assistance But, what’s unique it’s a 100% Financing so you don’t need a 2nd or a 3rd lien on the property.

Your interest rates are typically lower than if you combine it with a down payment assistance programs and you don’t have to repay any down payment assistance.

It has a monthly factor It’s like mortgage insurance upfront It’s financed at a monthly component.

Much less than FHA So if you can qualify for this program It’s better than FHA And As I mentioned, rates and payments Are typically lower on this program So USDA is really a great program.

refinance loan

Great!

And on average How much does the home buyer have to come in with out-of-pocket?

So Again, we are financing the whole loan Purchase price up to 100% So the only thing remaining is then the closing costs Typically, plan on around 3% of the purchase price for funds to close.

The question there then becomes, Well, Where does that come from? Typically, we ask the seller to cover those costs And if we can get the seller to cover 3% Then, the buyer may only need to come in with an earnest money deposit.

And they may even get most or all of that back.

If the seller is covering all the fees.

One unique feature about USDA Versus all other loans is that if the home appraises for more than the purchase price.

We can finance the closing costs up to that appraised amount So, no other loan I know that we can actually finance the closing costs.

What type of home buyer is this program ideal for?

So certainly those that don’t have access to money for a down payment Anyone that wants to live that doesn’t have to live within a metropolitan area because, again, the house has to be in an area that is not in a high densely populated area.

gmac mortgage

It’s also suited well for people who have some credit issues and anybody that qualifies for this program would definitely be better served than going FHA so those type of people.

And besides the Area restrictions are their any other property restrictions? So property restrictions are going to be similar to FHA They’ll do manufactured homes.

They’ll do homes with Casitas So no real other restrictions.

Just if it conforms to the FHA guides then it should qualify for USDA There’s a couple little quirky things that you don’t run into very often like you can’t actually have a barn on the property It definitely can’t be for agricultural purposes It has to be for residential purposes.

USDA Loan El Paso – Do You Pre-Qualify?

loan interest rates

Hey this is Chris the Mortgage Pro.

In this video we're comparing conventional loans to FHA loans to VA loans whichone's the best one? Which one's right for you? You know so many consumers are curious.

Which loan is best for me? Today I want to help you figure out which one isgonna benefit you and your family the most, for you a short-term and/orlong-term goals because it's different for everybody.

Now there are advantagesto each one of these loans so some have lower interest rates, some have lowerfees there's all kinds of different things to think about! Now most peoplehave a tendency to just look at one thing.

The payment! Which is cheaper? Well, it's understandable when you're buying a house you say, hey which which payment is cheaper? But, again how long you gonna be in that house? Is there PMI? Will the PMIdisappear? When will it disappear? If the PMI is gonna disappear in five years butI'm gonna be here in 20 years, maybe this other loan is better a long term! So wehave to look at these things as a whole.

Now people ask you all the time what'stoday's interest rate? It's impossible to answer that question, because yourfinances and every person's finances are as different as fingerprints! When welook at the whole situation you have to understand that all these items,represent different risks to the lender and the higher the risk the higher theinterest rate! The lower the risk for example if you put a lot more money down,obviously a lower risk right? Or if you have a higher FICO score lower risk,right? Well we have to look at these things as a whole to help you determinewhat interest rate you're gonna get and that also helps determine which programis right for you! Okay now it's time we're gonna get into the nitty-grittywe're gonna get into the comparison.

Number one - conventional loan.

Aconventional loan has a minimum of a 620 Fico Score Credit score if you're notsure what a FICO score is that is your mortgage credit score.

Now on an FHA loansome lenders go as low as a 500 my company goes down to a 550 the truth isnobody gets approved at 500 anyway and on a VA loan we're also looking at thesame thing many lenders go to 500 company goes to 550.

Okay PMI mortgageinsurance and on FHA it's called MIP mortgage insurance premium now on aconventional loan what happens is it is very very dependent on what is yourcredit score somebody with a very high credit score might have a very lowmortgage insurance payment, but if you have a 620 Fico score your mortgageinsurance payment could be way high.

Now on FHA FHA has pretty much standardized, here is your MIP rate remember they're the same thing they just call themsomething else here's your MIP rate it doesn't matterif you have a 620 a 580 a 550 or 800 FICO score makes nodifference you're gonna pay the same rate.

On a VA loan great newsno PMI no MIP you got that one.

Okay we're almost halfway through the videoso hit the subscribe button and hit the like button I appreciate thatnow if you'd like to comment, I will answer every single question personallyand of course you're welcome to share this with anybody you think it'svaluable for! Okay Debt ratio! A debt ratio is thepercentage of your gross.

Gross income is before they take taxes out.

A percentageof your gross income to your debt.

Now on a conventional loan with a high FICOscore they're gonna allow you or a 50% that includes your car payment yourcredit cards student loans alimony child support all those kind of things plusthe new house payment, that should be no more than 50% now if you have a lowerFICO score, it's probably gonna be 45% that's how conventional works.

Now let'stake a look at FHA with a 580 FICO score or above, here's what's basically goingto happen.

You're gonna probably be approved to a 56.

99%let's call it 57%, again that includes all your debts plus thehouse payment as a payment.

Lastly we have a VA loan.

Now a VA loan works veryvery different it looks at how much moneyis left over after paying all this stuff.

And it's called residual income andeverybody depending on what area of the country you live inand how many people in your family there's a certain formula for it.

Now if you have 20% more than that just to give you an example if it was athousand dollars but you have 20% more $1200 and a high FICO score you may even go up to 60 or 65% debt ratio which is unbelievable and its highest in thewhole industry.

Interest rate on a conventional loan you're often going tohear Fannie Mae, Freddie Mac those are conventional loans.

On a conventionalloan you are gonna have a higher interest rate than either FHA or VA.

Onan FHA loan it's lower than conventional and right about the same as VA they havevirtually the same interest rates.

Down payment on a conventional loan you'reusually looking at a 3% down payment.

People ask me about a conventional loanFannie Mae Freddie Mac yes those are conventional loans.

Now if we look at anFHA loan an FHA loan is gonna require a three and a half percent down payment aslong as your FICO score is 580 or above.

If it's 579 or below it requires a 10%down payment and of course for our veterans who honorably served, we thankyou! You get a zero percent down payment loan.

Okay so we talked about PMI, MIPmortgage insurance whatever you want to call it.

But there's also somethingcalled upfront mortgage insurance.

Now on a conventional loan there is no upfrontmortgage insurance, but those of you with a high FICO score might want to pay some, and they eliminate the monthly PMI payments forever,.

So that's a big dealand that's only available on a conventional loan and it doesn't makesense unless you have a really good FICO score.

On an FHA loan we take the loanamount and multiply it by 1.

75 percent we have to add that to the loan amount.

Simple example - if you have a hundred thousand dollar loan 1.

75 percent is $1,750, we're gonna add that, so you'd actually be borrowing $101,750 upfront mortgage insurance.

On a VA loan there's a couple of differentscenarios here the first time use of a VA loan it's 2.

15%so on that same hundred thousand dollars it's two thousand one hundred and fiftydollars added on on a second time use it's three point three percent so that'sthree thousand three hundred dollars now it doesn't sound like the end of theworld but if you're taking a four hundred thousand dollar loan and it'sa second VA loan that's three point three percent that is $13,200, that maymake you say mmm this other loan might be better.

Now though lastly if you're aveteran who happens to be disabled 10 percent or more there is no upfrontmortgage fee that there is no VA funding fee it doesn't exist for you.

Okayseasoning from bankruptcy many Americans through the last fewyears they've had a hard time and they did file a bankruptcy on a conventionalloan 4 years must have elapsed from the discharge not from when you startedbut from when it was finished before you're allowed to apply for aconventional loan.

On an FHA loan it's only two years and on a VA loan it'sonly two years.

Short sale seasoning.

Well a lot of people ask what's a short sale? Well at a time when people owed more than the house was worth, they often wentto the bank and said, hey my house is worth three hundred I owe four hundredand the bank accepted three hundred thousand dollars.

That was called a shortsale.

Well if you have a conventional loan if you want to apply for aconventional loan it would be four years after a short sale.

For an FHA loan it'sthree years must have elapsed from the time of the short sale and for a VA loanit's only two years.

Again Vets win, they earned.

A foreclosure well yessome people went into really hard times on a conventional loan we are looking atseven years before you can buy a home againOn an FHA loan it's only three years and For the vets - two years from aforeclosure okay Time back to work after an extendedabsence.

Well on a conventional loan there is actually no real time frame butthe lender will take a look they just want to make sure it's reasonable andeverything is considered as a make sense situation you can be back to work forone month after or six months or a year off.

On an FHA loan FHA guidelinesrequire six months back to work with pay stubs proof they've been back to workfor six months before they'll accept that income.

On a VA loan it varies perlender some lenders will accept right back to work some might want six months or three months a lot of them will require just get past the probationaryperiod on the job and you're good to go.

Occupancy on a conventional loan you can buy for a rental, you can buy for a second home if maybe you want to live inthe mountains or down by the beach on the weekends or obviously for anowner-occupied property.

For a FHA and VA loan it is owner occupied.

Only.

Hopefullythis video will help you need a decision making process which loan is right foryou but if you still stuck, reach out to me call me, text me, email me and if youwant this information for free go to www.

Fireyourlandlord.

Info click onthe tips page we have a download button right for you and of course I want tohelp you fire your landlord.

USDA Mortgage Loan Pros & Cons

gmac mortgage

- One of the things we wantedto talk to you, Gary, about was - we focus on bringing value to the agents and doingdirect to consumer.

So, we're doing two different models-- - Of course.

- So one of the thingsthat we are going in on is: a third of the buyers are now millennials.

- Okay.

- In our markets, andof those millennials, all the things we learnedover the past 10 years on marketing actually arepushing these people away.

Right, so we're toldto, when a lead comes in call them x number of times over this period of days and blast them-- - There's not a single personthat wants that phone call.

- No, nobody answers the phone.

So, they actually will fill out an inquiry on a lead page or something and they'll say they're interested but when we call them, theydon't answer the phone.

- What about texting them? - So that's what we've been doing.

I've noticed a littletip: like emails weren't getting opened in personal email boxes.

Work emails are getting opened, but personal inbox has become a wasteland.

- That's right.

- So I've been texting video clips through the service called BombBomb, and then also justsending quick texts asking when they would like totalk, and it's working-- - Imagine talking to people the way they want to be talked to.

- So like, is that what you believe.

what are your thoughts on text? - I'm ALL IN on text.

- Okay.

- I'm very bullish on text,it's why I have first in line.

And I believe in it the most.

Notice how I said, "what about text?" Text.

- So you think in terms ofbuilding a subscription model.

- If you added what your Instagram handle in your lead gen form andsaid in little parentheses "we will follow you on there" and DM you if we're unable to get to you by phone-- - [Neel] Yeah.

- You'll get everybody.

- [Neel] Yeah, and then-- - What you should reallydo on your lead gen form is how would you like usto communicate with you? E-mail, phone, InstagramDM, come to your house, smoke signals, write you a letter? You get a lead gen andthen you've decided through tried and true practicesfrom the 19-fucking-70's this is the industry now to communicate with them butthey don't want to communicate.

If someone called me I would be upset.

I'm upset when people call me.

- [Neel] 'Cause youdon't want a bandwidth-- - Because there's technology.

It's called text me and I'llget back to you when I can.

Not you call me on my time.

We value time.

You should make the leadgens predicated on not just, you should absolutely askthem upfront aggressively how would they like to be talked to.

If you say, we acknowledgemany people now communicate in different forms, how would youlike to be communicated to, one two, pull down, e-mail and Instagram, call and handshake, letter and telegram.

- [Neel] Makes sense.

- It will work.

- [Arjun] And with millennials that's-- - And there's old schoolmillennials that want a phone call.

And there's a 73 year oldgrandma who's hip as fuck.

(Arjun laughs) - Yeah.

- Individuality to how they want it, not just millennials do this, got it? And you have that ability.

That's how the form should be set up.

- So you actually built aservice of--and then for texting is that something they have to opt in for? - Yeah.

- Okay.

- Big time, like, you get theirthing then they gotta opt in and confirm because it'sa very sacred ground.

- It's not a spamming place.

- No, it is not.

- Okay.

Okay, and isthere anything else that you can give us as far asmarketing to this demographic which is becoming a biggerportion of our buyers? - Look, I mean, they'recynical to marketing.

They don't want the fucking-- - [Neel] They don't wanna be sold.

- They don't want thehotshot, I got a Lamborghini and a suit and I'm your real estate guy.

They want authenticity, theywant contextual creative where they live, you know? They want information, they want value, but they're like any other human.

They either wanna beentertained or informed.

Right? - [Neel] Yup.

- [Arjun] Makes sense.

- It's basic, but the problem is you can't run an infomercial anymore.

They don't carethat--there's no 27 year old that thinks it's cool thatyour face is on a bench.

- Yeah.

(Gary laughs) - I mean literally when I seea real estate agent's face on a bench I'm like thatperson is definitely dead.

- [Neel] We'll go on thefreeway and see a billboard where somebody just put up their face and I'm like that's for you,it's not for anybody else.

- 100%, and that's fine too.

- Yeah, that's cool.

- Like, Mazel Tov, enjoy, Iput my face on a billboard back in the day, it's fun, I get it.

The part where they reallylose, believe it or not I'm a little bit funny with outdoor media.

The same billboard cansell for $20,000 and 2,000.

So my opinion changes on that.

- [Neel] So there's a price but it's just not what they're asking.

- Correct, so billboardssell in a funny way.

You'll sign a six month contract and they couldn't sell it to someone else so now the month is there,now they're scattered, they don't want an emptyboard so you can buy it for 2,000 just for the month.

So I like that billboard, here's where I getscrewed up: the content.

So now you've got thebillboard at the right price.

I'll take it.

Yeah, every passenger islooking at their phone, Yes, I don't think billboardsare as good as they were 30 years ago, but you giveme a $20,000 board for 2,000, right, everything's got a price.

- [Neel] Yeah.

- That's how I think aboutmedia, but then creative.

The problem with most real estate agents when they get a billboard is they take their most stock image in a good suit.

Nobody wants to talk to you, Barry.

- [Neel] Yeah.

- [Arjun] Yeah.

- 1-800-Barry will helpyou is fucking 1987.

Why don't you put a billboard that says every other real estate agent sucks? And wear that awesome shirtthat you're wearing now and that will convert way better.

Even though some peoplehate that you said "sucks".

I know what every single banking and lawyer outdoor billboard looks like.

It is a person in a suitwith a tacky phone number.

Can't break through.

You've never seen it becauseyou're so used to it.

- Yeah, it's vanilla.

- Yeah, it's the same thing-- - You get somebody with a Faze Clan hoodie saying "I'm a lawyer andevery other lawyer sucks" and put a phone number they'regonna cream up 22 to 30.

- [Neel] Yup.

- 25 to 35.

Right? - [Neel] Yeah, that makes sense.

- [Arjun] Real estate and mortgage, both these industries moving forward with everything that'shappening in technology and how they're having to adjust to pivot which one feels the impact more? - Both because they're so inherently tied together, you know, both.

- The middle gets eliminated on both.

- Yeah, tech will eliminateeverything in the middle.

Glass doors, people will tell you those sunglasses got eliminated.

- [Neel] I bought these from Warby Parker.

- Correct, you used to goto fucking Sunglass Hut.

- [Neel] Lenscrafters or something.

- That's exactly right.

Got it? The internet wins, welose, now figure it out.

- Yeah.

- If you're in the middle you're finished.

I really believe that.

Nowthe question becomes, when? I'm right about that.

- [Neel] Mhm.

- But if I said this in 1994and you owned a bookstore you'd be like, you got called out first.

Mr.

Bezos came along.

If you were a taxi cab driverand you watched this video for some reason because it hityour fucking Instagram feed and you're like, I run an Internet taxi in 2009 you're laughing at me,that kid doesn't know shit.

And then Uber put you out of business.

- [Neel] Yup.

- The internet will puteverybody out of business if you don't build something defensible.

The only thing that'sdefensible is the best product, the best, and this is thescary thing for people because now they hearthat and they're like, well I'm the best, no you're not.

The best product that's differentiated.

You're just a real estate agent.

There's plenty of people thathave done it for 27 years too.

Or they could be LeBron and Kobe.

I have a funny feeling if I decided to be a real estate agent next year even with my lack of experience that I'd be really good at it.

(Gary laughs) - [Neel] Is that why you got Liz into it? - No, my sister got into it because she always wanted to doit, I mean, I pushed her to make the jump and supported her as she navigated inevitably what a lot of stay-at-home moms navigate which is, you know, you feel a level ofguilt that you wanna do it.

She grew up in an Eastern--Iknow what household she grew up in, onethat's very traditional, Eastern European, momstays home, you know? - [Neel] Yeah.

- So she had to go through her own shit.

The part that I pushed Liz onis her content on Instagram is "I suck, I haven't sold shit.

" - [Neel] But it's real.

Yeah.

- That's gonna lead to allour business, you know? - Yeah, it makes sense.

- Definitely.

- It just seems like justbeing at this conference there's a disproportionate amount of people in a higher age bracket.

People are in realestate and mortgage for, we have no young people in our office, it's all older people thathave been doing it for a while.

And I think they get stuck on-- - Well, everybody's introuble with young right now because everybody young thinksthey're Mark Zuckerberg.

[Arjun Laughs] - [Neel] You can't hire anybody young.

- You can't hire anybody young 'cause they're all starting companies.

We need the economy to collapse.

Then you'll get young.

- [Neel] Yeah.

- When everybody realizes theirdirect to consumer kombucha is not going anywhere,they're going to get a job.

- [Neel] Yeah.

- [Arjun] Punched in the fucking mouth.

- Punched in the fucking mouth.

- [Neel] But theseguys, for a lot of them, everybody is kind of plagued by the shoulda, woulda, coulda's'cause they're in the older part of their life and it keeps them back from future opportunities a lot of times-- - Of course.

- But I saw a piece ofcontent of yours a while back, I don't know, mixed insomewhere that said, you were talking again about how you could have invested in Uber-- - Yes.

- But you don't get yourself hung up on it because you could have doneit and then got hit by a bus.

- I'm glad you--did youlike that piece of content? Super interesting, right? - It just hit me 'cause I'm like, all the mistakes I madebefore, it let you to where-- - It got you to where you are now.

- This is the reason whyyou're at where you're at.

And use that as your fuel to go forward.

- Yeah, and by the way, Icould have been way better.

I mean, I'm prettysmart, that 400 million, it could be great, it could be great.

But it didn't happen.

Until somebody shows me a time machine my ability to look back anddwell is going to be zero.

- Yeah, makes sense.

Let me thank you for doing this too, man.

We got a ton of wine onthe way, I think, so-- - Yeah, what are you gonna do? - He's a big wine guy, I'm not.

- This is why I'm so excited about the barter I did with wine.

- It's a win-win.

- Yeah, but it was always a win-win.

I always loved when I didbarters for books, sneakers, any time I'm sellingsomething I want to barter because I want it todo well and I know that access to me is very valuable'cause you can't get it.

So I always knew I hada market and obviously as I've gotten biggerthe market gets bigger.

I mean, some of theshit I did for Crush It, like buy five books and I'llbe your best friend for a year, I didn't have the same leverage.

So anyway with books what Iwatched a lot of people do was they would buy a thousand books and put it in a warehouse.

Yeah.

Because they just wanted my time.

Maybe they gave away a couple but I don't blame them, they're busy.

If you can buy 1000 booksyou're probably busy, you know? So they're like, thebest use of their time was to put them in the corner.

Wine's going to be different.

Wine, people are gonna do shit with.

'Cause it has a natural currency in our society that's better than a book.

- [Neel] 'Cause clients love it.

- Yeah.

- [Neel] Agents love it.

- And then for me, it wasalways--once I ran the math, buy 4,000 sneakers was worthwhatever I was doing for you.

Buy four sneakers was worthwhatever you just bought, I decided was worth it based on how much pressure I felt to sell it.

What's interesting aboutthat, though, is I'm like, hm, this actually mightreally work for me.

Because I did the trade that was worth it but the backend has more of a residual.

You're going to give it to clients.

They're gonna fucking love it.

They can't get itanywhere else besides me.

It's a direct to consumer brand.

- [Neel] Could be in retail.

Okay.

- So they're gonna go tothe website and order it.

It's just gonna travel better than books.

- [Neel] It works better, yeah.

- Easier to enjoy right away.

- And I'll tell you, andI'm very proud of this, it's a $40 wine for 20 bucks.

- That's fantastic.

- So my hope is that peoplewill be able to taste it.

It's a big Delta.

- Yeah.

- That's awesome, man.

Thanks, Gary.

- Thanks.

loan rates

USDA Loan Company in Texas | USDA Loan Info | (888) 464-8732