100 financing: What is this USDA mortgage loan program and how can I get more info?
- 11/03/10 09:41 AM
One of the most under used and most misunderstood loan programs is the Guaranteed Rural Development loan from the USDA. This zero down program has some of the best features of any mortgage loan and should always be looked at to serve the needs of low down payment buyers. Check out this video for some more info. … (3 comments)
100 financing: USDA announces funding availability
- 09/08/10 02:55 AM
The USDA has announced that system enhancements which allow them to use their new funding have been completed. Although these funds had been granted by Congress, the USDA was unable to use them pending changes in their system that allowed for the increased Guarantee Fee of 3.5%. What this means is that USDA loans are expected to be fully funded through at least 2011! Look for all of the lenders that had been out of the market to begin providing USDA loans again very soon- some lenders have already sent out notices this morning. The even better news is that GUS, the Guaranteed Underwriting … (7 comments)
100 financing: USDA Rural Development loans are back!
- 05/27/10 04:07 AM
The USDA issued a memo yesterday, May 26, 2010, reauthorizing the issuance of conditional commitments for USDA loans. What that means is that your better lenders (the ones that usually close USDA loans while funds are waiting to be allocated) will immediately be able to continue closing loans. The amount that has been authorized is $2.5 billion and it's expected that new funding will be available from Congress before this is exhausted (there are currently a few bills, but HR 4899 is the most likely to pass quickly- possibly by today). Do know this money comes at a cost. Per the memo, … (11 comments)
100 financing: USDA Rural Development loans are NOT out of money, and other important facts…
- 09/29/09 10:37 AM
Last Friday the USDA formally announced it was entering its annual "roll over" of funding as of its new fiscal year October 1st. This mainly administrative action results in USDA's funding being delayed until it's made available through the General Accounting Office (GAO). This by no means indicates the USDA is out of funds! What it does do is delay funding for loans and guarantees. While there are still a number of lenders that can and do close and fund loans during this period, the vast majority of lenders do not. This doesn't mean your loan won't close, it just … (39 comments)
The typically busy spring home buying season has sprung in Lake County which surpassed the 300 unit per month threshold topping out at 317 for the month of June, '09 as reported by the National Association of Realtors. Prior to this April had seen the best sales so far this year with 288 and the June sales blow away January's total of 187 sales. Sales are clearly trending upward with price and rate affordability playing a big role, coupled with the first time buyer tax credit incentive. While sales of single family homes under $50k took a sharp jump … (2 comments)
100 financing: USDA appraisal requirements changing July 01, 2009
- 06/26/09 08:37 AM
The last holdout- USDA- will be requiring the 1004MC addendum to the appraisal on all Rural Development loans effective July 1, 2009. Up to now they were the only loan program to not require it so the news certainly doesn't come as a surprise.
The memo from USDA states files in process prior to that date can be submitted without the 1004MC until July 31, 2009. After that all files must include the addendum. Personally I have not seen any negative impact from the inclusion of the addendum on FHA and VA loans, so I expect no negative repercussions from … (3 comments)
Today the USDA announced it regular allocation of funding had been credited is now available for use. These are the funds that can be used to guarantee refinance loans (you can only refinance a current Rural Development loan) and homes with pools. Remember pools still require a special exception t be approved. If the appraised value of the home doesn't exceed the purchase price by the value given to the pool, your buyer would have to pay the difference. Talk to a knowledgeable RD lender for more details. Also, if you are considering purchasing a home and using the … (2 comments)
100 financing: USDA income limits change April 20, 2009 for Lake County
- 04/10/09 12:19 AM
It's been confirmed! The income limits in Lake County (and the entire Orlando area) for USDA Guaranteed Rural Development loans will go up to $70,750 for households from 1-4 persons and $92,400 for households from 5-8 persons. No false start anymore folks. We can start taking and processing applications immediately but cannot submit them to the USDA until 04/20. Folks don't take this lightly. I did my preliminary research on this change when it was first announced and discovered EVERY FHA deal I had done would have qualified for RD. Why is this a big deal? RD has no … (0 comments)
100 financing: Rural Development loans not jumping on the appraisal change bandwagon
- 04/07/09 08:10 AM
I just confirmed that the USDA will not be requiring the new 1004MC form for their appraisals. This in spite of the fact that Fannie and Freddie, FHA/HUD and the VA are requiring them. That effectively makes RD loans the only ones NOT requiring this additional info. Coupled with the fact you can still order your own appraisals through local expert appraisers, not some national company, this makes the RD loan program mighty attractive! As if you didn't have enough reasons before to like the program- count these benefits on top of such attractive features like: 100% financing, that can include closing … (0 comments)
100 financing: USDA Rural Development loans no longer accepting ANY pools?-updated 04/08/09
- 04/06/09 11:35 AM
Those who know me know I don't usually repeat hearsay. I like to confirm things beyond a shadow of a doubt before writing about it but this is just too important not to share. I heard from a reliable source today that because of some wording in the new funding allocation for USDA RD loans that they were no longer accepting pools under any circumstances. Those of us familiar with RD loans know there has always been an exception process to approving pools. It seems that may now be gone. My trusted source in Florida is out until tomorrow so … (8 comments)
100 financing: USDA Rural Development program receives new funding
- 03/23/09 10:20 AM
The USDA announced Friday that the funding allocated by the recent economic stimulus bill had been received. Many lenders continued to close and fund RD loans awaiting this allocation but others stopped closing them. With this notice look for many lenders to get back into the RD game. Indeed Suntrust just announced today that they are once again accepting RD loans. On a separate note, we have been notified the anticipated income guideline changes will not become effective until late April or early May, and although there is no guarantee they will pass "the Agency is very optimistic the change … (4 comments)
100 financing: Latest update on availability of funds for Rural Development loans
- 02/26/09 02:12 AM
Pursuant to my sources at the USDA it will be taking about another two weeks for the funding allocated by the recent economic stimulus bill to trickle down to retail levels. For those who are seeking a Guaranteed Rural Development loan from a lender such as myself, this should not affect you since we are still funding loans in anticipation of the money we know is coming. If you are working with another lender who is not funding loans, it's probably worth it to wait with them as opposed to starting over with another lender. Do know, however, they have … (8 comments)
100 financing: RD loans no longer underutilized...latest info on program funding
- 01/05/09 11:55 PM
The USDA sent out a notice regarding availability of funds yesterday and estimating funding for the current period would be exhausted by January 9, 2009 "if not sooner". They site demand at historic highs as the reason for the shortfall, and this comes as no surprise to those of us that have been using the program. They are clear to state, however, that they will continue to take and process applications and a source of mine expects additional funding to be online shortly after the inauguration of President Elect Obama. That said the delay in funding should be short lived. In the … (7 comments)
USDA Rural Development loan expert Sue Botelho was quoted in an excellent article regarding the increased popularity of RD loans in the Wall Street Journal today. Sue has done a great job getting word out regarding the strengths of the program and its zero down features. Congratulations Sue! The article quotes other sources and demonstrates the program's effectiveness but it also stresses that as the program becomes more popular, funding will be an issue. Unlike FHA and VA this loan program is solely funded by the government. Although losses have been in line with or better than other government … (6 comments)
100 financing: More GREAT news if you want to purchase a home in Lake County, FL!
- 11/07/08 04:39 AM
Upcoming changes in the Rural Development loan program should allow more families to qualify with ZERO down and ZERO closing costs! The income restrictions are expected to ease, allowing households from 1 to 4 family members to make over $70,000/yr and still qualify. Households having 5 to 8 family members would actually be able to qualify even if they make over $92,000/yr! These are substantial increases so if you were told you made too much to qualify for an RD loan, please look again! This coupled with the fact that every home in Lake County is in the eligible area … (10 comments)
Upcoming changes in the Rural Development loan program should allow more families to qualify with ZERO down and ZERO closing costs! The income restrictions are expected to ease, allowing households from 1to 4 family members to make over $70,000/yr and still qualify. Households having 5 to 8 family members would actually be able to qualify even if they make over $92,000/yr! These are substantial increases so if you were told you made too much to qualify for an RD loan, please look again! This coupled with the fact that every home in Eustis is in the eligible area will … (2 comments)
Upcoming changes in the Rural Development loan program should allow more families to qualify with ZERO down and ZERO closing costs! The income restrictions are expected to ease, allowing households from 1to 4 family members to make over $70,000/yr and still qualify. Households having 5 to 8 family members would actually be able to qualify even if they make over $92,000/yr! These are substantial increases so if you were told you made too much to qualify for an RD loan, please look again! This coupled with the fact that every home in Mount Dora is in the eligible area … (2 comments)
Local information regarding Mortgage lending in Central Florida including Orange, Seminole, Osceola, Lake, Volusia and Marion Counties. Also providing up to date information on HUD and government loan programs, and first time buyer programs. I'm required to tell you I'm not acting on behalf of HUD/FHA or the US Government!
One of the most under used and most misunderstood loan programs is the Guaranteed Rural Development loan from the USDA. This zero down program has some of the best features of any mortgage loan and should always be looked at to serve the needs of low down payment buyers. Check out this video for some more info. … (3 comments)
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