What are the requirements for the USDA program in College Station? 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 College Station.
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 College Station 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 College Station.
It has to be a Single Family home in the College Station 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 College Station – Do You Pre-Qualify?
If the elevator tries to bring you down, gocrazy.
Punch a higher floor.
This is Dan on your inside team at Growella.
It's Monday, July 9, 2018.
It's today's The Mortgage Minute-and-a-Half.
People be like put me in work work work workwork work.
And employers obliged.
Friday, on the ninth anniversary of the endof last decade's recession, the Bureau of Labor Statistics reports that two-hundredthirteen thousand people entered the U.
workforce last month and that's a positivesignal even though not everyone re-entering the force has found an actual job.
Just the act of looking for jobs suggestsconfidence among U.
workers, and confidence leads to consumption which drives the domesticeconomy forward.
The jobs report also showed U.
worker hourlywage growth to be on the downswing, a data point which gave mortgage rates a quick Fridayreprieve.
Slowing wages reduce the pressure of economicinflation and when the pressures of inflation drop, mortgage rates often do, too.
So, take a look at today's live rates andget yourself a quote.
Rates are holding near the lowest in six weeks.
Today's mortgage rates are in the dirt dirtdirt dirt dirt dirt.
Interest rates for FHA loans, VA loans, conforming,USDA, and jumbo -- everything's up to kick off the week.
The rates you get from a lender are customizedand more than a dozen factors go into your quote.
Whether you go fixed or ARM, full fee or zerocost, even your choice of lenders affects the rate you get so talk to two or more lendersand find your preferred combination of rates, fees, and service.
No matter how far you push the envelope, it'llstill be stationary.
And no matter how matter how many times youhear you need twenty percent down to buy a home, it's still going to be not true.
You don't need twenty percent down to buya home.
And that fact makes a data point from EllieMae a little more concerning.
The mortgage software firm asked more thanthree thousand renters: "What's stopping you from buying a home" and the overwhelming answerwas "I haven't saved enough for a down payment".
Of all things, saving for a down payment shouldnot be the thing that stops you from buying.
After all, there are seven government-backedmortgage programs that let you make down payments of less than five percent -- some don't evenrequire a down payment at all.
HomeReady, HomePossible, HomePath, FHA loans,USDA loans, VA loan, Conventional 97.
Then, there are local government programsthat give money to buyers for buying in particular areas.
And it's there, if you want it.
So, don't get hung up on the twenty percentdown thing if you want to buy a place.
Lenders don't care so much what you put down.
They just want to know you can make your monthlypayments.
So, talk to a lender and find out what's possible.
You can't know until you ask.
Growella does timely and relevant mortgagenews three times weekly and you can visit the site at Growella dot com for more excellentmortgage and real estate news.
Go on and click the like button.
What's blue and not heavy at all.
The New Reverse Mortgage | Reverse Mortgage Improved
Hey Mark Albert here, so glad you're withme today.
Today for the very first time on my youtube channel I get to discussfake news.
I love it.
So pay attention it's gonna be prettyexciting.
Private lenders stress test.
This is new and it's unsubstantiated.
At least five or six syllables.
Let me tell you if you know how manysyllables in that word please write down below so I tried to figure out that fiveor six words syllables.
Fake is one syllable.
News is one syllable.
This isfive or six.
Its unsubstantiated and we're gonna look at that together.
First of all lenders in Canada there's three categories.
There's A lenders, Blenders, C lenders.
A lenders where you get your best rate you need your best creditscore.
Need at least six hundred fifty credit score.
You can do that at fivepercent down with an A lender, any of the big banks and many other lenders thataren't part of the big bank series.
B lenders, if you can't qualify with an A lenderyou got to go to B lender.
Credit score you can get away with under six hundredwith some of them.
But you gotta put 20% down.
A little easier to get in to qualify based on stress test but you gotto put a bit more down.
C lenders, that is where you're talking privatemortgages.
So from a credit standpoint it's less importantand why is that? the reason is is because you're looking at an equity loan.
So theloan is based off of the equity on in on the house and so private lenders willlend out based on the amount of equity you have.
And this is pretty helpful forsome people who can't get they need more money and there with an A lenderor B and they need more money for pretty strategic reasons and these guys havehelped people have been stuck in a bit of a pickle.
They've been very veryhelpful for a lot of people.
So you didn't know this probably but privatelending in Canada it's about 10% of the total value of mortgages out there.
So right now all mortgage business is estimated about 1.
5trillion dollars in the mortgage market in Canada and 10% of that isprivate money.
Okay? So on January 25th which is this pastFriday a number of media outlets picked up a story published by Reuters and openlike this, it said "Canada is considering subjecting private lenders to the samemortgage stress test rules faced by banks to prevent housing marketsfrom being destabilized by the lenders rapid growth, three sources with directknowledge of the matter said this" and that's unsubstantiated.
How do I knowthat? Well let me tell you.
There's two things that I'm gonna tell you.
MortgageProfessionals Canada is an organization, they're a really key strategic partner inthe mortgage industry in Canada and I happen to be a member of them.
So theysent me a notice on this.
This is what they did.
They contacted directly theMinistry of Finance from the Government of Canada.
They called out directly andthey spoke to senior ministry officials and they were advised by them that thesereports are unsubstantiated.
Word-of-the-day unsubstantiated can'tsay that too many times in a row I tell ya.
Not currently considering anyregulation on private lending so we're clean right? And that's the firstaffirmation.
Secondly, we got Bill Morneau Finance Minister, he wasspeaking to reporters in Ottawa.
This is what he said, he said this "I'm notcurrently considering any stress test on private mortgage lenders".
There you go.
No stress test.
Nothing being considered.
So what does that mean for us? Well foryou, just know, you want to get if you got to get a mortgage for your house youwant to get an A lender if you can.
Right? If you can't you got to defaultto a B and as time moves on circumstances may be that you may needmore resource and because of the stress test you may not be able to qualify formore money.
But you're already an A mortgage or a B mortgage and you haveequity in your home and if the need is important you should be able to look atconsidering private lending if it meets the need.
If you need to get advice onthat, I'd be happy to, reach out to me my contact information is below.
Listen I hope this was helpful.
Thank you so much for being with me today.
Have yourself a fantastic day.
Looking for to talking you soon.