USDA Bryan TX | USDA Loan Info | (888) 464-8732

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

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 Bryan 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.

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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 Bryan.

It has to be a Single Family home in the Bryan 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 Bryan – Do You Pre-Qualify?

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hey this is Chris the mortgage pro todayI'm gonna teach you how to qualify for a mortgage well there's a lot of thingsobviously that a lender has to look at so let's go through each and every oneof them the first one that stops everybody and they get all nervous iscredit now some people have outstanding credit and some people hey they havechallenges maybe they had late pays you know bad things happen to good peopleall the time and sometimes that's the reason for a low credit score sometimesit's you don't even have enough credit so let me give you a way to think abouthow the lender will look at your credit they say to themselves hey if this guycan't pay a $25 a month credit card are we gonna lend them three hundredthousand dollars it's a small way of thinking don't think fold up thinkbigger think I'm not gonna go out to dinner I'm gonna pay my bills first youpay your bills this is what my mama taught me first you pay your bills youpay the mortgage you pay all your other debts then you figure out a wheat andsteak over eaten beans it's just a way to think if you think like that in ashort period of time your credits gonna be good enough to fire your landlordokay next thing lender needs to know income well do you have job stabilityhow long you been on your job look you could get a job and get approved thenext day you really can but if you change jobs every three months well thatjob stability isn't there they want to see some kind of stability do they wantto see income of course how do they know that you can afford to make that paymentthey need to know that you have the income they expect it to continue forusually three years is what they're looking for obviously you can get fireyou can get laid off things could change but they have a reasonable expectationof three years going forward that the income will continue so they want to seethat they'd love to see a history the stronger the history the stronger thecase you could fire your landlord okay next thing they want to seedownpayment they call this skin in the game if you put up your own money thatyou worked hard for for a down payment they say hey they got some skin in thegame they're serious they're committed now if you put a zero down program andwe have these zero down programs they work great for some people but it makesa little bit tougher for the underwriter to say yeah they're worth taking a shoton so we want to see a down payment sometimes people put $200,000 on a downon a four hundred thousand dollar house do they have some skin in the gameit makes the underwriters decision way easier doesn't it and if a person can'tput a thousand or two thousand dollars down it makes the underwriter a littlenervous so take advantage of the programs save some money but be surethat you're ready to show you're committed to this transaction okaysomething else obviously the underwriter wants to seewe need an appraisal of the property we have to know the lender needs to knowthat if it's a four hundred thousand dollar loan that the house isn't worththree hundred and fifty thousand dollars so the collateral is the last piece ofthe puzzle that they have to make sure it's worth it but that also protects youas the borrower why because if you commit to buying a house for $400,000and it appraises at three hundred and eighty thousand is that something youreally want to do so this is designed to protect you and protect the lenderthat's a big deal okay not only do they want to see your credit but on thecredit report it's a list of debts what do you mean well you have your carpayment on there you have your credit cards you may have child support alimonywe have to look at all the debts if you make $5,000 a month but you have $2,000a month in debt doesn't leave a whole lot for a house payment so we have tolook at all the numbers versus your income so that's the last thing thatthey're gonna want to see how much is going out already because you're gonnaadd on this new house payment okay so those are the five things that alender needs to see they want to see your credit are youresponsible do you pay your bills on time or do you make excuses for notpaying them do you have crazy debt that's out of control that you can'thandle when you add on house payment do you have income and job stabilityhow's that going do you have five new jobs or one new jobit doesn't really matter if you have two or three jobs but if you change your jobon a regular basis not gonna work what else they want to see how much moneyyou've saved what's in your 401k what's in your IRA what is in your bank do yousave money do you have a financial responsibility that you are showing youare a responsible borrower those are the key things they want to see andobviously the appraisal they want to make sure the collateral is solid itprotects the lender and protects you so this is Chris Trapani call me I'll helpyou figure it out and together we're going to fire your landlord!.

[Mortgages] How to Qualify (HOME LOANS) Home Loan Requirements | 2019

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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.

Bigword.

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.

Slightly differentregulations.

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.

Private lenders.

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.

Bye now.

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