Mortgage Lender Agency Baytown TX | USDA Loan Info | (888) 464-8732

What are the requirements for the USDA program in Baytown? 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 Baytown.

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.

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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 Baytown 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.

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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.

prequalify for mortgage
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.

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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 Baytown.

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

Then it also has some home price limitations.

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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.

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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.

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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 Baytown – Do You Pre-Qualify?

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- Hi my name is David Young and I'm the Directorof Business Development at RCN Capital.

I'm the person that runs ourCorrespondent Lending Program.

RCN's Correspondent LendingProgram is a robust platform designed to partner withother private lenders in the private lending industry to help them scale their business.

Really we've tried to focus on presenting a robust turnkey platform that helps people scale theirbusiness along four channels, capital, geography, human capital, and technology and infrastructure.

RCN Capital can help inall four of those areas.

RCN is very active in the hard money space with non-owner occupiedresidential real estate.

That includes one tofours and multi-families.

We have three product lines essentially based on term length.

There's a 12 month term product, there's a two plus one, twoyear with a one year option, and there's a 30-yearfixed rental program.

All of those are availableunder a white label umbrella through our correspondentlending platform.

Correspondent lending programis available nationwide.

Anyone can go to rcncapital.

Com.

Scroll down towards the bottom and you'll see a map of the United States showing that we're lendingin almost every state.

RCN seeks to partner witha variety of entities out there operating inthe private lending space.

Generally we connectwith other hard money, private money lenders thatare active in the same space and are looking to expandtheir business in scale, as I mentioned earlier, maybe a need to scalegeographically or with more capital or the other items thatI mentioned as well.

We also can partner undercertain circumstances with other lenders thatare actively lending and it may not be directlyin this exact space right now but would like to expand theirbusiness into a new vertical by getting into theprivate money lending space and non-owner occupiedresidential properties.

We can also consider opportunities that arise with thosetypes of organizations.

Zero-Down Home Buying with a USDA Loan

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The human head weighs eight pounds.

I'm Dan on your inside team at Growella.

And, this is today's Mortgage Minute-and-a-Half.

You can't judge a book by its cover.

Well, sometimes you can.

But you definitely can't judge a real estatereport by its headline.

Especially in the case of this month's HousingStarts report from the U.

S.

Department of Housing and Urban Development.

The report measures the number of times builders"broke ground" on new properties over the past 30 days and the most recent Housing Startsreport shows a overall slowdown in the number of starts nationwide.

And, that's what the news is reporting.

"Housing Starts Fall More Than Expected","U.

S.

February Housing Starts Fall Seven Percent", "Housing Starts Tumble".

And if you only got your news from the headlines,I'd forgive you for thinking that housing was down.

But, it's not.

These headlines, they're misleading becausethey lumping a whole bunch of government data into a single, combined figure that's notmuch help to everyday home buyers like me and you.

The reason Housing Starts is down? Because of a drop-off in data linked to apartmentbuildings with five or more units.

And, that's not what people like us buy.

We buy single-family homes and condos andother detached properties and the data on homes like these is strong.

Like, the strongest in ten years strong, finallyapproaching pre-recession levels.

Although you wouldn't know it from the headlineswhich are out there throwing doom.

Which is one more reason to surround yourselfwith professionals.

A skilled REALTOR or loan officer can helpyou make sense the market, to make a better choice.

Why you mad? Fix ya face.

Because mortgage rates are dropping todayand that's good news if you went to contract on a house this past week.

Mortgage rates for conforming, FHA, jumbo,VA and USDA loans are down as compared to Friday, but the amount they've dropped willdepend on where you get your rate.

Mortgage lenders use different pricing modelswhich respond differently to changes in the mortgage-backed market, which means that thelender that was best priced before the weekend may not be the one that's best-priced afterit.

This is one of the reasons why it's smartto shop around when you're looking for a mortgage.

Get quotes from two or more lenders to makesure you're getting a great price.

Thanks for the memories, mortgage rates.

Even though they weren't so great.

Because mortgage rates today are rising andthat's bad news if you went to contract on a house this past week.

Mortgage rates for conforming, FHA, jumbo,VA and USDA loans are higher as compared to Friday, and up about a half-point since theNew Year.

But the specific rate you can get today willdepend on your choice in lenders.

Mortgage lenders use different pricing modelswhich respond differently to changes in the mortgage-backed market, which means that thelender that was best price before the weekend may not be the one that's best-priced afterit.

This is one of the reasons why it's smartto shop around when you're looking for a mortgage.

Get quotes from two or more lenders to makesure you're getting a good price.

U.

S.

homeowners are refinancing different,according to Freddie Mac's most recent Quarterly Refinance Report which shows that of all therefinancing households that started with a thirty-year fixed rate loan, twenty-nine percentof them abandoned their thirty year and switched into a fifteen.

It's the highest percentage of homeownersmoving from a thirty to a fifteen-year fixed in more than a decade.

So, why are homeowners switching into 15-yearloans? Among other reasons, fifteen-year mortgagespreserve wealth.

At today's rates, over the life of your loan,you're going to pay thirty-seven percent less interest to your lender with a fifteen ascompared to a thirty and, on a three-hundred thousand dollar loan, that keeps an extraone hundred forty seven thousand dollars in your pocket.

That's money not spent and it can be usedfor whatever you want -- to pay for college, to buy a second home for your retirement,to invest in whatever it is that interests you.

Use it for whatever you want.

It's a lot of money and it's the upside ofpaying off your loan fifteen years faster.

Talk to your mortgage lender about your fifteen-yearhome loan options and see if a shortened up loan term can be right for your long-termplans.

Growella does mortgage news three times weeklyand we go live each Thursday at Noon Eastern, 11 Central.

So, put a like on it, leave a comment, andremember that mountains aren't just mountains.

They're hill areas.

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