How do You Pre-Qualify For a USDA Loan in Texas?
The USDA Guaranteed Home Loan Program in Texas is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan.
Many people who take advantage of this USDA Loan program in Texas are able to get into their homes with little to no money out of their pocket.
BUT, there are several USDA Home Loan eligibility requirements that you need to meet in order to take advantage of this home loan program.
The first USDA Loan requirement is that you cannot be a current homeowner.
If you already own your home but are planning to sell it, then you are still eligible! You just need to have your existing home sold BEFORE we can close the loan for your new home in Texas.
The next requirement is that your total annual household income cannot exceed the limits set by the USDA. Finding USDA Loan Texas isn’t as hard as it seems with a certified Mortgage and Loan Officer at your disposal.
These income limits are based on market area and family size.
Another requirement is that you cannot have defaulted on a USDA loan in the past.
This means that if you’ve had a past USDA loan that has gone in to foreclosure, you unfortunately aren’t eligible.
To take advantage of this program, the home has to be located in an eligible rural area.
But guess what, rural does not necessarily equal country! Homes do not have to be in a country setting.
In fact, there are many areas where entire counties and cities qualify for this program.
The property has to meet minimum property standards.
The home must be in satisfactory condition, and this loan cannot be used to finance any sort of income producing property.
That means mini farms, and properties with farm acreage are not eligible.
Do you want to find out if you qualify for a USDA Loan in Texas? We make it EASY! Just give us a call at USDA Loan Info (888) 464-8732.
We’re here to make your dreams of homeownership come true.
In 2019, What Do You Need for a USDA Loan in Texas?
Well hi there, I'm Michael Hausam of TheHausam Group at Vista Pacific Realty; so I had a couple of buyer consults last weekwhere the issue of pre-qualification came up.
or pre-approval or conditionalloan approval; there's a bunch of different words for that; oftentimesthey're used interchangeably, but this is arguably as an upfront effort one of themost important things that a homebuyer can do and the confusion about theseterms and what they mean is pretty significant; also there's quite atremendous strategy involved if you complete this process correctly; so Iwant to define a few terms and correct a few errors along the way; all right, sofirst of all the pre-approval or pre-qualification, conditional loanapproval, whatever you call it, is basically all the work that's done by abuyer up-front, before they ever go out and buy a house; okay it really makessense to do that no matter what because you want to be making sure that you'relooking for homes in the price range that you can qualify for and also itmakes a heck of a lot of sense to make sure that the home that you'd like issomething that you can actually spend the money on to buy, both on the cashdown as well as a monthly basis; but let's look into the details;there are basically three levels of work that can be done upfront; number one iscalled pre-qualification; pre-qualification is a verbalconversation with a lender; sometimes it might include a credit report sometimesnot, it never includes providing incomedocumentation; basically a pre-qualification is a paper-napkindiscussion with the lender that says, "yeah this is about whatit's gonna cost and if everything you told me is correct, you might be able toget a loan.
" It basically is the simplest, least intrusive way to have aconversation with a lender to kind of figure out, "yeah I think you couldprobably qualify for a loan.
" But let me assure you this, precisely zerolistening agents and home sellers are impressed with the pre-qualification; thesecond level of advanced work is known as a pre-approval; now way back in theday, in the 1990s when I first got into the mortgage business, a pre-approvalmeant that you took an entire loan file and took it to an actual humanunderwriter who went through everything and signed off on the loan; that wasliterally pre-approved before finding a home; well nowadays it's a little fuzzierthan that; a pre-approval typically will include providing income documentationto the lender, pulling a credit report, and then submitting to an electronicunderwriting process, but no formal loan underwriting approval is given; basedupon my experience roughly 99.
9 percent of all transactions go together with apre-approval.
But notice the key point on that: no underwriting approval from anactual human underwriter; what they do is this is they take all the incomedocumentation and then they type it in the computer - pay stubs show this - incomeshows that - credit report shows this - they put that all into a computer press ENTERand Fannie Mae's version of this is called the desktop underwriter and itspits out what they call a "finding" and the finding is they are going to getapproved; or you're likely going to be approved; what it isn't is an actualapproval; the key test would be this: if you've got what you think is a fullyunderwritten loan approval from a lender, you can ask them what are the conditionsof the loan approval and you'll hear something like, "well, we don't have actualloan conditions yet because you need to find a house and submit the loan withthe contract and appraisal and all that to get your loan conditions.
" Well that'sthe key: you don't have an approval you have an electronic pre-approval, which isnot quite as strong and that brings me to number three: aconditional loan approval or sometimes it's calleda TBD approval; TBD meaning the property is to be determined; the conditional loanapproval is like the pre-approval of old and that is you take the entire file, thepay stubs, the bank statements, the tax returns - everything - the credit report, yousubmit that to an underwriter, who goes through and signs off on it, will provideof list conditions from the lender in order to close the loan; it literally isa loan commitment; and this is the important part:the typical lender and I would say in my experience probably 2/3 of them do notlike to do conditional loan approvals, because that underwriter is a twohundred or two hundred and fifty thousand dollar a year person and their autograph,literally their signature, is sufficient to release those funds and the lender'sgonna want that underwriter not working on deals that haven't yet happened, but onthose that are already in escrow; but the key thing is if you find a lender whowill get you a conditional loan approval, you can literally go out into themarketplace with an approval in hand, effectively negotiating as cash; let meshow you an example: this right here, this is a conditional loan approval on atransaction that I did recently, from a lender that I work with called Parksidelending and if you look at this two page, three, four-page document, it's got theunderwriters name right here: Sean Mackie; it has a full on commitment from thislender with a list of prior-to-doc conditions, going onto two pages and thena list of prior to close conditions; so this is literally the commitment fromthe lender to make the loan; so the borrower's and I (my clients), we wentthrough and looked at all of these conditions to make sure that there wereno conditions on here that we couldn't meet; once we figured that out and wewere satisfied, we were able to write an exceptional offer ;the offer that wewrote didn't have a loan contingency at all; it was very important that myclients' problem, which was they needed a loan, and literally that is a problem: ifyou don't have enough cash to buy a house and you need a loan, that's yourissue, that's not the sellers issue; so we wrote the offer without a loancontingency because we already had the loan and we didn't need the time to goout and find one; and that effectively made my clients just as good as all-cashbuyers; well, as you could imagine, the listingagent and the seller loved that and we got the transaction accepted;surprisingly, we found out later they were competing against a 50% downoffer; so think about this: my clients were writing a 20% down offer,the competition was writing a 50% down offer; now typically you would think thata 50% down offer would be a better offer than the 20% down, right? Well not in thiscase; the 50% down offer, they asked for a two-week loan contingency, my clientsthey asked for none; if you'd like to discuss this further, I'd be happy tohelp you ;you can call me 949 413-2371, youcan also email me Michael @ HausamGroup.
Com Thank you very much and have agreat day!.
CalHFA's Lender Training: FHA First Mortgage Products
[MUSIC PLAYING] Hello, and welcome toCalHFA's lender training.
My name is Molly Ellis.
Our focus in this video is ourconventional first mortgage programs, basic guidelines,and the common ways to layer closing costs and downpayment assistance programs to benefit your borrowers.
First, let's talk about ourCalHFA Conventional Program.
This is a conventional firstmortgage with a very affordable interest rate.
It has a maximumloan to value of 97%, and a maximumcombined loan to value of 105% with a minimumcredit score of 640.
It follows FannieHomeReady guidelines.
Technically, CalHFA doesn'thave a loan amount limit.
However, we do chargea high balance fee for any loan over $484,350.
This would only be applicableif the Fannie HomeReady loan limit in the countythe property is located allows you to exceed $484,350.
Otherwise, you'd have to adhereto the HomeReady loan limit.
On a high balance loan,the max LTV is 95%.
For the highbalance fees, please check out the rate pageon CalHFA's website.
Next is our CalPLUSconventional program.
This first mortgage alsofollows Fannie Mae's HomeReady guidelines, but itcomes with built-in loan for closing costs called theZero Interest Program or ZIP.
CalHFA offers ZIPat a loan amount of 2% of the firstmortgage loan amount or 3% of the firstmortgage loan amount.
Please check out therate page for pricing.
ZIP has a zero interestrate with deferred payments.
It's only available forfirst-time homebuyers, and remember, the definitionof a first-time homebuyer is someone who is not owned andoccupied a principal residence in the past three years.
One of the bestbenefits of using either conventional program isthe reduced mortgage insurance rates through GenworthMortgage Insurance.
The borrower can choosea monthly premium, a single premium, or theycan choose from several split premium options.
This allows you tocustomize the loan to meet the needsof your borrower.
You can access Genworth'sMortgage Insurance rates through our RateExpress, or we've also included a link in theloan program handbooks on the website.
Click on Lenders/RealEstate Agents, then click the LoanProgram Handbooks tab, then choose the program handbookapplicable to your loan.
For all CalHFAconventional programs used by first-time homebuyers,homebuyer education is required for at leastone borrower on the loan.
CalHFA does not allowmanual underwriting or non-traditional crediton our conventional loans.
What makes our program so greatis our down payment assistance and closing cost assistancelayer these programs with our first mortgagesto increase affordability for your home buyers.
For example, if yourborrower is employed in a K through 12 publicschool in California, they would be eligiblefor CalHFA's Schoolteacher and Employee Assistance Program.
This mortgageassistance will lend 4% in down payment or closingcosts at a very affordable 3 and 1/4% simple interest rate.
Or if your client doesn't workin California's public schools, they can use our MyHomeAssistance Program.
MyHome is 3 and 1/2% of thesales price or the appraised value, whichever is less,which could get your borrower almost 6% or 7% in mortgageassistance when you layer it with CalPLUS and ZIP.
The interest rateis only 3 and 1/4% simple interest withdeferred payments.
And whether you'reusing the School Program or theMyHome program, it does need to be insecond lien position, and your borrower needs tobe a first-time homebuyer.
Make sure you take a minuteto check out the rate page on the CalHFA website.
We offer a lower interestrate if the borrower decides not to use the down paymentor closing cost assistance, and a lower rate if theyare purchasing home either in a Fanny HomeReady areadesignated as no-income, or when the borrower's incomeis below the Fannie HomeReady limit.
Please remember, theFannie HomeReady limit is only an indicatorfor a lower rate.
If the borrower is overthe Fannie HomeReady limit, they are stilleligible for CalHFA, it's just at a higher rate.
You can use the FannieHomeReady Lookup Tool to find the informationon specific property address and get the FIPS number-- you'll need to enter it intoCalHFA Mortgage Access System.
That covers our conventionalfirst mortgage programs and the down payment assistanceand closing cost assistance that can be layered with them.
Now let's move onto the property requirements and maximumlender origination fees.
The property requirementsfor these programs for the most part follow FannieMae's HomeReady guidelines.
Also, make sure you adhereto any lender or investor overlays.
The sales price ofthe property must be within CalHFA'scurrent sales price limit.
A one-year homewarranty is required for first-timehomebuyers unless they're purchasing new construction.
The property cannotexceed five acres.
Manufactured homes are allowed.
If it meets Fannie Mae MHAdvantage, the max LTV is 97%.
But if it's MH standard,the max LTV is 95%.
Either way, minimumcredit score is 660.
If the property meetsFannie Mae guidelines for an accessory dwellingunit, then as allowed, you can count the rental income.
Now, let's talkabout lender fees.
First, to originateCalHFA loans, you must be aCalHFA-approved lender.
The maximum a lender cancharge in lender fees on the first mortgage is 3%.
This includes origination,processing, and underwriting.
It does not includeany third party fees.
Our rates are at par, so youhave to charge origination on these loans.
But with the closing costsand payment assistance from ZIP andMyHome, the borrower will still have very littleout-of-pocket expenses.
CalHFA will allow you to chargean additional subordinate processing fee of $250 forMyHome or the School Program, and an additional $50processing fee for ZIP.
Also, you may not chargeany additional fees like origination,per diem interest on the subordinate loans.
We want to help make this easy,so we have provided some tools to help you process loanswith CalHFA programs.
The loan program handbookfor each one of our programs includes all the detailsabout the program in one easy handbook.
The loan program matrixprovides a quick reference of terms and requirementsfor all CalHFA programs.
The very popular loanscenario calculator will help you calculateloan amounts and print results for your borrowers.
You can find these toolsunder Lenders/Real Estate Agents on our website.
Click on Loan Program Handbooksfor the program handbooks, the Calculator icon for theloan scenario calculator, and the Tools, Affidavits, andDocs tab for the loan program matrix.
Now let's look at the funstuff before we close.
Our single familylender training team offers in-person trainingclasses every month across the state.
Attend a four-hourworkshop to learn all about CalHFA's programs.
Classes are announcedeach month on our website and through our monthlye-news announcements.
To sign up for our class,visit CalHFA's website, choose the Training Calendarlink under Lenders/Real Estate Agents, and sign up for a classthat will work best for you.
We also provide customizedmarketing materials that can be downloadedfrom our website by clicking on theLenders/Real Estate Agent section of the website,choose the Loan Officers tab, then choose the Sales Toolsand Marketing Materials link.
For any questions you may have,contact Single Family Lending at 916-326-8033.
Or you can email ourLender Services Division at lendertraining@calhfa.
Thank you so much for your time.
Now get out there andhelp more Californians have a place to call home.
- USDA Loan Agent Texas TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Houston TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency San Antonio TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Dallas TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Company Austin TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Fort Worth TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Company El Paso TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Arlington TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Corpus Christi TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Plano TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Company Laredo TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Lubbock TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Irving TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Garland TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Amarillo TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Grand Prairie TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Brownsville TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency McKinney TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Frisco TX | USDA Loan Info | (888) 464-8732
- USDA Pasadena TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Killeen TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Mesquite TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency McAllen TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Waco TX | USDA Loan Info | (888) 464-8732
- USDA Denton TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Midland TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Company Carrollton TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Round Rock TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Abilene TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Pearland TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Beaumont TX | USDA Loan Info | (888) 464-8732
- USDA Odessa TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Richardson TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company The Woodlands TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map College Station TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Lewisville TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Tyler TX | USDA Loan Info | (888) 464-8732
- USDA League City TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Wichita Falls TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Allen TX | USDA Loan Info | (888) 464-8732
- USDA San Angelo TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Edinburg TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Sugar Land TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Mission TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Conroe TX | USDA Loan Info | (888) 464-8732
- USDA Bryan TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Longview TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Pharr TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map New Braunfels TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Baytown TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Flower Mound TX | USDA Loan Info | (888) 464-8732
- USDA Cedar Park TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Temple TX | USDA Loan Info | (888) 464-8732
- USDA Missouri City TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Georgetown TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company North Richland Hills TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Mansfield TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Victoria TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent Atascocita TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agency Harlingen TX | USDA Loan Info | (888) 464-8732
- USDA Eligibility Map Pflugerville TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agent San Marcos TX | USDA Loan Info | (888) 464-8732
- USDA Loan Agent Rowlett TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Port Arthur TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency Euless TX | USDA Loan Info | (888) 464-8732
- USDA Spring TX | USDA Loan Info | (888) 464-8732
- USDA Loan Company Grapevine TX | USDA Loan Info | (888) 464-8732
- Mortgage Lender Agency DeSoto TX | USDA Loan Info | (888) 464-8732
- USDA Galveston TX | USDA Loan Info | (888) 464-8732