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.

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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 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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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.

What is a Conventional Loan?

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Well hi there, I'm Michael Hausam of TheHausam Group at Vista Pacific Realty.

So the question I want to address today iswhether you as a homebuyer or a mortgage borrower should use a mortgage broker ora direct lender.

What's the best place to go to get a loan? Now as far asdefinitions go, a direct lender is somebody, an institution, that's lendingtheir own money; whether it's a bank like Bank of America or Wells Fargo or Chaseor a mortgage banker, like Quicken Loans or Loan Depot.

a mortgage broker is acompletely different animal ;that's a third party intermediary, who's basicallytaking your loan package and taking it to a direct lender.

So what's the bestone to use? Well in my background, as I've mentioned before, I started out in thereal estate business on the mortgage lending side.

I first worked for afinance company, that was a division of an automotive company that made mortgageloans; and then I went to work for a bank and then I work for two differentmortgage bankers, and now I can broker loans as a mortgage broker.

So the quickanswer is: the best place to get a mortgage loan is through a mortgagebroker.

'Cause that's what I do! But as self-interested as that answer is,it's also the right one, as far as I'm concerned, because I have my license witha mortgage broker because I want to be able to obtain the best possiblefinancing for my clients.

But there are reasons for that.

Consideration number1: your profile.

If you've got extremely good credit and your income and assetsare very simple, you can basically get a loan from anywhere.

But if yourcircumstance is more complicated, if your credit isn't great, if your tax returnsare complicated or your employment is complicated or your assets arecomplicated, then you might have a difficult time finding a direct lenderwho will make that kind of loan.

A mortgage broker willhave the experience and probably dozens of different avenues to take your loan.

So that's the first consideration.

Now the 2nd consideration is the type ofloan that you want.

If you want to borrow six hundred and seventy nine thousandsix hundred and fifty dollars or less and you want a standard thirty-yearfixed-rate loan, that's a Fannie Mae Freddie Mac agency loan, and everybodymakes those loans.

But if the loan you want or the loan you need or the loanthat you qualify for doesn't meet those requirements, it's a little morecomplicated.

If you've got credit or asset or income issues, you're probablynot going to be qualifying for a Fannie Mae or Freddie Mac loan.

Nn that case itmay be difficult to find out which bank will make the loan for you.

Also someborrowers have extremely unique profiles as far as high net worth individuals, andthey want to cross collateralize brokerage accounts, other properties,significant assets that they have and it takes a custom high-end private bankerto make those loans.

I also had a circumstance recently where a borrowertried to see if I could match a rate and quote given to them by their creditunion.

Well at that time their credit union was offering a special promotionfor people that were in the ministry - the wife worked for a church - and adifferent promotion for people in education and the husband was a teacher.

They also had a special credit with their credit union because of the timethat they'd been members of the credit union.

Well the circumstances in thatsituation were such that these borrowers got an amazing deal that wasn't readilyavailable in the marketplace.

Consideration number 4 is thetransaction itself.

Where is the loan going to be handled? Maybe you're notaware and haven't been paying attention to the mortgage business like I havelately, but Wells Fargo and Bank of America and Chase have all announced aton of layoffs; they're consolidating operations.

I just ran into this with a buddy of mine that had a really good relationship withthe lady at his local B of a branch.

Well he was talking to her about gettinga loan, but it turns out that other than just taking the loan application itself,a hundred percent of everything that was going to be done on his loan was handledout of state.

The people would've had no idea who he was and, more importantly, no ideaabout what was going on here in Orange County real estate.

The other issue thatcame up with that loan is that this particular banker didn't have any ideawhat a conditional loan approval was.

It's something that I use in my realestate business extensively and that's the type of loan that you get a borrowercompletely underwritten by a human underwriter; the loan is completelyapproved before finding a house.

Well, B of a won't do that type of loan.

Theywould give a pre-qualification letter but they wouldn't get anybody to signoff on the loan.

Well that has an impact on the transaction.

So we ended up notusing Bank of America because they couldn't help us the way that we neededto be helped.

Also another consideration is if you're using a local mortgage bankor local mortgage broker and the representative is right here in thecounty, there's some pressure that can be brought to that individual that wouldn'tnecessarily be the case if you just pick up the phone and talk to somebody wayoff in Michigan at Quicken.

Being a real estate agent (and I'm here at an openhouse right now) it's very common to have mortgage bankers and mortgage brokerscome in here to the open house to try to get business from me.

Well can youimagine if I'm in a transaction with one of those mortgage bankers or mortgagebrokers and something goes sideways, it's not just that one transaction thatthey're gonna be thinking about.

It's all the other transactions that they'rehoping that I'm going to send to them and you as a borrower can benefit fromthat situation.

Whereas if you're on the phone to some21 year old recent college graduate that's got a headset in the cubicleoutside of Detroit and you're one of seventy-five people and his pipeline,your tragic circumstance or urgency isn't gonna mean quite as much.

And thatcould impact you in your transaction Consideration number four is simplycosts.

And let's be honest ,when it comes down to it, the question that's alwaysasked is not, "How good is your service and where is your processing centerlocated?" It's, "What's your rate and fees?" So let me give you a little bit of atutorial on how it works for mortgage bankers.

Their loan officers are giventheir rate sheet, "This is today's rates and this is what you have to go out intothe marketplace with," and if you're dealing with one of those individuals,they have their rate for the day and you get that opportunity, whereas with themortgage broker I'll get 75 or 80 different lenders whoare all competing for my business.

So what happens is they because they don'tneed to pay a loan officer and have office space and all that for a retailbranch, they're delivering on a wholesale basis; so they deliver dramatically lowerrates to me as a mortgage broker and then I, seeing all of these differentlenders competing against one another, can figure out the loan for you and theprice for you, as these guys are all trying to fight it out.

You then benefit;so that's one huge advantage that a mortgage broker has, is that at the clickof a button, literally the click of a button, they can do far more shoppingeffectively then you can do picking up the phone calling all over town andcomparing rates.

Now for my particular clients, what I do if I'm representingyou as a home buyer, I offer substantially discountedorigination fees; as for me the loan piece isn't the way that I make myliving.

The loan piece is the way that I make sure that my clients get the bestservice, the best terms, and the best performance, so that theirtransaction holds together.

It's absolutely impossible, other than in themost unique of circumstances, that I can't dramatically undercut the costsand fees of any mortgage banker or mortgage broker for my real estateclients.

So if you'd like to learn more about that or if you'd like a simplerate quote, you can call nine four nine four one three two three seventy one.

Youcan email me Michael@HausamGroup.

Com.

also right above my head there should bea little round button with an 'i' when you move the cursor; click on that andthat will take you to my website and you can get more information there, as well.

Lastly, please follow and subscribe to this youtube channel.

I very regularlydo advice for borrowers, for home buyers, and home sellers; tips and other littlethings to help make your real estate experience easier and happier.

Thanks somuch for watching and have a great day!.

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