What are the requirements for the USDA program in Grapevine? 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 Grapevine.
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.
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 Grapevine 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.
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.
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.
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 Grapevine.
It has to be a Single Family home in the Grapevine area, without a barn structure on the property.
Then it also has some home price limitations.
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.
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.
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 Grapevine – Do You Pre-Qualify?
When you're looking for a home,it's a major investment and financing is an important piece of it.
This is JJ Johannes with IAHomes and today we're going to talk to Dan Hillersmortgage professional at First Federal Credit Union.
Dan Hillers,First Federal Credit Union.
I'm a mortgage loan expert here.
I've been in the lending industry for 15 years.
Got into mortgage lending.
I was a personal banker and then had theopportunity come up to where I could do some mortgage lending and thought it wasreally interesting.
So got into helping people find their first home and, and loved doing it.
So just continued on from there.
You get to help people finance the probably biggest purchase of their life.
So you're in it from start to finish with them and you can really see the joy on their face when they get there,when they get their house and they really love,you know, closing,moving in and it is stressful, but you try to take the stress out of itfor them and, and make it an enjoyable experience.
I would say the two things people want to know,probably the most on the mortgage side of things are how much is it going to cost me, how much am going to have to bring in atclosing and what's my payment going to be,so those are the two biggest questions that I get on my side of things right from the get go on.
When someone's asking about getting qualified or getting prequalified.
We like to get on answering those questions right away for them and we can do a prequalification.
It doesn't take long at all.
We can jump on our computer,give them a prequalification within 20 minutes and tell them kind of what they're looking at bringing in and what their payment's going to be on the loan so that way we can get.
They get the information fast so that they can make a decision on whether they want to put a purchase or put an offer on the house or not.
A lot of people don't know that we are afull service mortgage company so we can.
We can do FHA,we can do VA, we can do USDA,we can do conventional, any type of loan on that side we can handle.
That's popular question as far as how much money people need when they go to buy a house.
It used to be,you had to have 20 percent down on it back in the day.
Now you can do it as little as or no percent or no money down on.
It just depends on kind of what your credit score is and what you're looking at doing big picture with the loan itself,but there are options where you can go a little bit lower on the down payment side of things.
On the location side,we have four locations.
We have one in Hiawatha on north center point road, one on first avenue here in Cedar Rapids425 First Ave and then our new one out here on Westdale Parkway and then we also have one in Spencer, Iowa up in the mall and Spencer.
The new feature that we have here at the Westdate location is our e-teller machine, so you can stop on in and you can walk up and don't have to wait in line.
If there is no one at the machine hit itand you can to a live person and do your transaction right through the machine.
That person may be here at Westdale.
They may be here,they may be at Hiawatha or Spencer, but you can have a conversation with them just like you would and do a transaction just like you would with a teller.
We give that personal touch to it to where you stop in.
We get to know you as a,as a member, not necessarily as a customer member number so we can really have that personal relationship with you.
If you need something, we're more than willing to help you out trying to get everything taken care of.
for you financially because it is your finances we're dealing with.
We're dealing with your money every day,so we need to make sure that we do it in a professional manner and still in a personal manner that we can converse with our members.
Gary Vaynerchuk on Realtor & Lender Marketing Strategy
What's the process, when do you even start looking for a loan? Do you advise that people start before they even find a house or is this something where uh, once you kind of find the place you should go and get a long, kind of, pre-qualified? I always recommend that you start with the mortgage lender, before you start shopping and getting your heart set on something that may or may not be in your price range.
I always usually recommend, if possible, stay with a local lender.
That way there's no excuse of, "I didn't get the fax that you sent me.
" You can actually go into the office.
Just like Joel, he's right here in Greenwood.
Bring the stack of papers to him and say, "You scan it, and you send it off.
" But yeah, a mortgage lender is like the very first step.
You can contact a realtor, I love it when people contact me first because I have preferred people that I've had experience with, working with lenders.
Usually your realtor is going to have a list of lenders that they have worked transactions successfully with that they can provide you some guidance on.
Yeah, and just to reiterate on that a little bit, there's nothing wrong with going and seeing Melissa and letting her know what you're looking for, so she can start kind of taking a look at the market and seeing what's going on, but you really want to come talk to a lender first because let's say you go and you find this house and it's $250,000 or $200,000 or whatever it may be and you love this house and it's everything you've ever wanted and you put in an offer and then you go talk to your lender afterward, there may be something that came up on your credit you weren't or your income didn't quite qualify you for that much.
Then the next thing you know, all your hopes and dreams are gone, and you'll be upset.
So get with your lender to make sure you're prepared before you go out and start you know, looking at houses.
Well, even if you are going to be looking, maybe next year, or six months out, I would say go ahead and contact a lender because, like, Joel's great about looking at their credit and saying, "Hey, this is going to cause you some problems, these are some ways you can go ahead and, you know, step up that credit score by, you know, doing X, Y, and Z.
" So it's always to go ahead, as early as you can and start working with your lender to get yourself ready.
Yeah, it's never too to get in touch with me and let me know what you're looking for.
So immediately? Mmhmm.