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USDA loans

Would like information about USDA loans. What are the requirements? What fees and costs are associated with the loan? Are there specific houses? Me and my fiance found a modular in the country for $34,000. My fiance makes roughly 32,000 a year. Are there minimum to the loan that needs to be taken out? Would this option be better than FHA loan? Any other information would be appreciated.
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February 01 - Upland
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February 07
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February 06
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February 05
Dollar for dollar, the USDA RDL is the best loan out there other than a VA loan. I have closed hundreds of them over the years. The USDA requires no down payment, has the shortest waiting period after a short sale, and requires no money down!

The USDA loan can be used to finance a SFR, Townhouses, Condos, Manufactured Homes and Modular Homes. We can do down to 600 on USDA RDLs and unlike what was written below, the income limits in CA are between approximately $77K - $101K. So the USDA is  NOT only for low income borrowers. Your only problem is the loan amount. You'll be hard pressed to find a lender who will lender below $50K.

Best of Luck!
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February 04

USDA Home Loans are primarily used to help low-income individuals and allows 100% financing for a home purchase, or refinancing in a designated rural area that is USDA designated.  These home loans are guaranteed by the United States Department of Agriculture and must meet guideline requirements. Home loan eligibility is based primarily on income and the property you are choosing to purchase.

USDA Guidelines:

  • Purchase or streamline refinance is available
  • All working family household members' income must be included for eligibility including non-purchasing spouse income
  • Applicants for loans may have an income of up to 115% of the median income for the area.
  • Evaluating borrower income eligibility can be viewed at section 4.2, page 1 on the USDA website Subject property must be in a location designated as a USDA Rural Development housing area
  • Maximum 6% seller concessions are allowed
  • Minimum 640 credit score is required, eligibility can be found on the USDA website
  • Maximum debt-to-income, or DTI allowed is 46.9%
  • IF the house appraises for more than the purchase price, closing cost may be financed into the loan
  • The Guarantee Fee of 2% and the MI of .4% may also be financed depending on appraised value
  • 30 year loan term is only term allowed
  • Non-occupant co-borrowers are not allowed on USDA loans
  • Delinquent Federal Debts are not allowed
  • Installment debts must have six payments or less remaining to exclude from DTI
  • Deferred debt must show "Deferred" for 12 months from 1st payment date to exclude from DTI
  • Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance
  • Applicants must agree to personally occupy the dwelling on a
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February 04
USDA loans are also known as rural loans. This is because there are specific homes that these loan qualify for in rural areas. The benefit of this loan is that there is a 0% down payment because there is 100% financing. For credit, different lenders will have different minimum credit score requirements but I recommend having at least as score of 620 or better. Also, below I have pasted a site that shows rural/USDA houses. The best thing for you to do is to speak with a lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
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February 04
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Eligibility may be restricted to rural areas—"rural" being defined very loosely—but USDA loans are still great because they're extremely accommodating of low-income consumers. Even if you do have trouble paying your mortgage, they'll give you a break, with subsidies, assuming you meet the requirements. Unlike conventional mortgages, there's no down payment required – the loan can even cover closing costs, if the seller doesn't. You don't have to have great credit, either: If your FICO score is low because you don't have a recent credit history – rather than having a bad credit history – you may still qualify. For short-term loans go here.

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February 02
 
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