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.
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.
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 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.
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 Bryan – Do You Pre-Qualify?
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.
Borrowers: Mortgage Broker or Direct Lender?
Hello Texas realtor Bubba Bashawwith Austin's Lender and we are bringing it let me tell you what we're doing weare so excited because we are realtor centric our goal is to help you have agigantic spring in summer of sales and we put some things into place to makethat happen the first is prequalmybuyer.
Allyou have to do is go to www.
Com Put in your name your phone numberyour email your clients name phone number email in any notes as soon asthat comes in we immediately are on the phone with your buyer look let's behonest your highest and best use of time is selling real estate not chasing leadslet us help you with that now once that link comes in we're going to talk toyour customer on the phone and we're going to encourage them to do a loanapplication at our website AustinsLender.
Com All they have to do is clickon applying at the top of the screen do over at and when it comes in and theyenter into our program called Floify.
That's our loan flow program and you'regoing to love this because throughout the loan process at each major point youand the customer are going to receive both text and email updates so youalways know what's going on speaking of always knowing what's going on we'vemade another little change when you call our office512-953-7359, every phone rings Somebody is answering your call we arenot going to have voicemail anymore because we are realtor centric andthat's just the only way to be now one of the other great things we have foryour clients with the 640 and higher credit score that are looking for aconforming loan we have now gone to day one certainty and what that means iswhen your customer applies online at AustinsLender.
They're going toreceive a link asking for permission for us to receive all of their documentselectronically.
No more digging for pay stubs no more digging for banks in it nomore my tax returns in the storage warehouse and I got to get it on Tuesdayof the following week all of that will be brought in electronically throughFannie Mae so when we give you an an approval it IS an approval.
We are notsecond-guessing anything and the best part about day one certainty is FannieMae for years has recorded home valuations across the US.
They have thebiggest database of anybody so in many cases will also get an appraisal waiverwhich means we don't have to were done appraisal so upfront we know that whenwe sent you an approval gets an approval it's not a prequel it is an APPROVAL fora first-time buyer with a 640 or higher credit score and we're doing it righthere in Austin Texas.
We are so excited about our website austinslender.
Comthat makes it easy for your plan to apply it's like follow the bouncing ballit's not a page where you have to fill in a whole bunch of crazy stuff and aska question and they answer yes or no it's so simple once that happens flow fiflow if I follows them all the way through the loan process and sends youtext and email updates every day if we're missing a document like a divorcedecree they're going to get a text and an email every day they can uploaddirectly into their loan file this is the greatest program at all now let metell you one last thing if you have a customer you're close to closing dateand they're about to go on vacation don't worry about it.
Because we haveeclose.
Eclose means your borrower can close they're alone from a laptop onvacation in their pajamas it is so simple because now our title company ourinvestor in a third party called notarized are all on the webinar withthe borrower so they can sign all documents without going to a titlecompany they can even sign the note in the deed a lot of people go oh no youhave to sign the note that you know you know not anymorethey've already been done in Texas we've already done it it's excitingour goal is to make your spring the best you've ever had and I hope that you'llstart by using pre quote my buyer calm it's a great port if you have a customeryou need us to talk to call us 512-953-7359.
We are here to be your lender.