usda: USDA Rural Housing Mortgages - Increased Income Limits
- 04/22/09 07:50 AM
On Monday, April 20, USDA Rural Housing income limits were increased. Here are our local limits and, if you are located elsewhere, just email me and I can tell you the limits in your area. Okaloosa County: If there are 1-4 persons in the household, maximum income is $76,250 and if there are 5-8 persons in the household, maximum income is $100,650 Escambia, Santa Rosa, Holmes, Bay and Walton Counties: If there are 1-4 persons in the household, maximum income is $73,600 and if there are 5-8 persons in the household, maximum income is $97,150. This is a great tool to … (0 comments)
usda: Update on USDA Income Limit Increases
- 03/05/09 04:36 AM
I wanted to share the response I received from someone at USDA today on the increase in the income limits. It still sounds very promising!
Here is my ‘canned' response sent to all inquirers. If it happens (we're very optimistic), it will be incorporated at the same time as our regular annual income adjustment, late March, early April, maybe by March 20, depending on when we get data from HUD (for the regular increase). ________________________________
NO guarantee but optimistic. Hopefully around March 20, maybe a little later. It would use the 4-person limit for the 1-4 person households, and … (4 comments)
usda: USDA Does NOT Lend Money - So How Can They Be Out???
- 01/25/09 12:52 AM
It is amazing to me to see how many phone calls we are getting from around the country asking how we can still do USDA Rural Housing loans since they are "out of money"! It is a misconception that the USDA lends money - they don't! Their role in the USDA Rural Housing Loan is to guarantee (insure) the loan against default. That is why the have the 2% funding fee as opposed to monthly mortgage insurance. Currently, they have used the entire appropriation that was given to them by Congress for FY2009; however, they are still issuing conditional guarantees that … (9 comments)
usda: USDA Rural Housing Income Limit Increase Postponed
- 01/13/09 10:39 PM
Even though we had it on good authority (we even had it in writing that unless someone complained it would take place January 20), USDA has postponed the 2-tiered income system, which will allow more buyers to qualify for this program, until March 20. I have heard that the reason for this postponement is that they have already used their FY2009 congressional appropriations in the first quarter, from October 1, 2008 - December 31, 2008 (actually, I believe they were used up as of January 9, 2009). While they have used all of the current appropriated funds, USDA RURAL HOUSING LOANS … (2 comments)
usda: 2008/2009 Mortgage Guideline Changes
- 01/11/09 08:00 AM
We have now had our first full week of a new year and I wanted to tell you "Happy New Year" and I hope that 2009 will be awesome for you. As you are aware, there were many changes implemented in 2008 and at the beginning of 2009, and will be more forthcoming. I wanted to give you a run down on them since it affects all of us and how we can get buyers to the closing table. I feel it is a lenders' responsibility to keep you, the Realtor®, abreast of what is happening to help you to keep … (5 comments)
usda: How Many Homes Can Be Sold With a Start Rate of 3.25% on a Fixed Rate Mortgage that Ends Up at 5.25%??
- 12/26/08 11:44 PM
Imagine this: You, as a Realtor have a house listed for sale and a motivated seller. This seller is willing to pay up to 4% to 6% or higher towards the buyers' closing costs and prepaids. You have a prospective buyer that qualifies for a USDA Rural Housing Loan (the income limits starting January 20, 2009 are much higher than where they currently are). Imagine now that you send your buyer to Northstar Mortgage Group for their financing. They don't have a lot of cash to use towards closing and their credit score is a 580. Imagine that they are told … (2 comments)
usda: With Rates So Low, What Happens If I Lock in a USDA Loan and Don't Get to Closing on Time??
- 12/18/08 12:03 AM
Currently, the investor we use for our USDA Rural Housing loans offers two rate lock extensions up to 60 days each, so that you can actually get 120 days extension. They do charge for this and we have been told that, effective today, December 18, 2008, the price (charge) to extend is going up. This price is charged as a one-time fee and is NOT an increase to your current rate. Here are the new costs for extending a rate lock in: 1 day extension - No Charge, but can only do 1 free 1-day extension, not 2 7 day extension … (1 comments)
usda: USDA Rural Housing Program - Buyer Can Get 2/1 Buydown with Start Rate of 3.75%! Less than 4% is HERE!!
- 12/09/08 04:13 PM
Based on today's rates, a buyer can get a 30 year fixed rate mortgage on a 2/1 buydown (rate is bought down 2% the first year and 1% the second year) with a rate of 3.75% the first year, 4.75% the second year, and 5.75% years 3 through 30! This gives you a better payment and cash out of pocket at closing than does a VA or an FHA loan! There is a cost to do this of 2.1% of the loan amount and this can NOT be paid by the buyer - it can be paid by the Seller, the … (0 comments)
usda: USDA Rural Housing Loans and In-Ground Swimming Pools........
- 11/07/08 04:00 PM
The USDA Rural Housing Mortgage program has very "black and white" guidelines, or so most people think. They have certain limitations on the debt to income ratio of the borrower (your total monthly debt divided by your total monthly income), they have a maximum income a borrower can make (see prior blog for how that is changing), they have geographical restrictions (which are VERY liberal and won't be changed until at least 2012) and they don't allow in-ground swimming pools. However, and many people don't realize this, you can ask for an exception if your buyer is purchasing a home that … (6 comments)
usda: USDA Rural Housing Loans - More People Will Now Qualify!!!
- 11/04/08 08:46 AM
Today, the final ruling was published to simplify the USDA Rural Housing program's income limit structure for the USDA Guaranteed Rural Housing Program. These income structural changes will become effective on January 20, 2009, unless they receive adverse comments by January 5, 2009. They had put an advance notice out about trying to do this on April 10, 2008 and have not yet received any adverse comments so this should be a non-issue. In essence, the current income limit structure that is based on household incomes from one to eight persons (in the household) would be restructured as follows: 1-4 person … (10 comments)
usda: If you are a Seller, or a Listing Agent, How about Offering a Rate of 4.75%???
- 10/29/08 03:27 AM
If you are familiar with the 2/1 buydown program, you know that rates are 2% less the first year, 1% less the second year and stabilize at the end rate for years 3 through 30. This is a FIXED RATE mortgage that allows a buyer to have an interest rate of 4.75% the first year, 5.75% the second year, and 6.75% for the remaining life of the loan based on today's rates! If you have a seller that is anxious to sell their property (and from what we're hearing, there may be a lot of bank auctions on foreclosed properties coming … (1 comments)
usda: USDA Rural Housing Eligibility and General Information
- 10/22/08 05:02 PM
If you are a Realtor® with a client, or you are a prospective real estate buyer, the USDA Rural Housing loan is a great program! It is one of the last truly "no money down" program and allows closing costs the the seller isn't paying to be included in the loan amount! The areas that are eligible will probably surprise you. Their maps haven't been revised in nearly 10 years and, as this program is based on the full-time population in an area, much of the Florida urban maps are still considered in this program. The maps won't be revised until 2012, or later, so … (1 comments)
While it may be tempting to choose a loan officer and lender strictly based on the lowest-quoted interest rate, it is recommended that the decision be prioritized by a different standard - their reputation. As the loan officer to provide you with testimonials from past clients, as well as ancillary-related professionals (you can see mine here). Google your prospecitve loan officer's name and see what type of information that they are contributing to help buyers and sellers and Realtors®. (It is suggested you google the first and last name of the loan officer, the word "mortgage" and the city … (0 comments)
usda: Florida Real Estate Foreclosures: Inflated Facts or Fiction??
- 10/19/08 03:05 PM
Florida has gotten the reputation for being "the foreclosure capital of the nation". What they don't tell you is that the basis of this "fact" is the the Lis Pendens filing, which is the first step in the foreclosure process. A Lis Pendens is file and it can take 6, 8, 12 8, and even 24 months in some cases to actually get to foreclosure. During this time (after the filing of the Lis Pendens and prior to the foreclosure), many of these properties are being sold (either as a short sale or a regular sale), or some of the … (3 comments)
usda: 100% USDA Rural Housing Mortgage Program - Funds Are Appropriated!
- 10/17/08 06:21 AM
As of today, the funds for Fiscal Year 2009 for the USDA Guaranteed Rural Housing program are available in all 50 states! USDA Rural Development loans are guaranteed by the buyers paying a 2% funding fee but the appropriation of the funds are done by Congressional appropriation. Each year, the funds "end" on September 30 and it typically takes a couple of weeks to get the final appropriation assigned and approved by Congress, as it did this year. During the time that the funds are "not available", we can still close USDA Rural Housing loans but we cannot get a … (4 comments)
usda: 100% USDA Rural Housing Loans for Low and Very Low Income Households!
- 10/14/08 03:39 PM
Most of my posts are on the USDA Guaranteed Rural Housing Mortgage program. This is a mortgage program that gives 100% financing, including, if necessary, the funding fee, closing costs, and prepaids to enable a buyer to get in a house with absolutely no money down. This program is one in which the client goes to a mortgage lender (such as Northstar Mortgage Group!), a bank or a mortgage broker to get their financing. If a client makes less than a specified amount for a specific purchase area, and the property fits the geographical requirements, we can assist a buyer with … (3 comments)
usda: PROVEN USDA Rural Housing Mortgage Loan Pro!!!
- 10/06/08 11:27 AM
My title on ActiveRain says that I am a "USDA Rural Housing Mortgage Loan Pro". I am licensed to do USDA Rural Housing loans in Florida, Alabama, Georgia, North Carolina, South Carolina, and Tennessee. The media tells you that 100% financing does not exist today for your buyers today. This is not true. Of course 100% financing is available to Veterans but it is also available through the USDA via their Rural Housing program. If you are going to place your commission check in the hands of a loan officer where your client needs 100% financing, send them to an expert. … (6 comments)
usda: USDA 100% Financing, No Down Payment, Rates Back at 5.5% No Points/No Origination Fee
- 10/06/08 05:12 AM
Today's rates on a USDA Rural Housing loan are at 5.5% again with no points, no origination fee. There is a 2% financed funding fee but no monthly mortgage insurance. What does this mean to a person who is currently renting? They can buy a home at a sales price of $155,400 and have a payment less than $900, not including taxes and insurance. This $900 payment does include the financing of the 2% fee. Here are the sales prices that can be purchased to keep principle, interest and financed funding fee under a renter's current rent; these figures do not … (1 comments)
usda: First Time Buyer? Buy a House with NO MONEY DOWN and get the $7,500 Tax Credit for 2008!
- 10/01/08 07:01 AM
HR3221, the bill signed into law about a month ago, allows for up to $7,500 in tax credits to be given to first time homebuyers that purchase a home between August 9, 2008 and July 1, 2009. This credit will be deducted from your 2008 tax return. It does have to be paid back but it is paid back over 15 years, which would be $500 a year added to your tax liability for the next 15 years as it is interest-free when repaying it. If you couple this with a USDA Rural Housing Loan (mortgage), you can get into a property … (1 comments)
usda: First Time Buyer? Buy a House with NO MONEY DOWN and get the $7,500 Tax Credit for 2008!
- 10/01/08 06:54 AM
HR3221, the bill signed into law about a month ago, allows for up to $7,500 in tax credits to be given to first time homebuyers that purchase a home between August 9, 2008 and July 1, 2009. This credit will be deducted from your 2008 tax return. It does have to be paid back but it is paid back over 15 years, which would be $500 a year added to your tax liability for the next 15 years as it is interest-free when repaying it. If you couple this with a USDA Rural Housing Loan (mortgage), you can get into a property … (0 comments)
On Monday, April 20, USDA Rural Housing income limits were increased. Here are our local limits and, if you are located elsewhere, just email me and I can tell you the limits in your area. ;)
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