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23 Comments on USDA loans can be used to buy "fixer uppers"...Here are the best tips I know!
J Sard- Yes, you are right! There is a HUGE pitfall that the consumer must get passed though, and that is the URGE to do the work themselves! Cannot be done!!! Thanks for checking it out!
D
I'm not sure where you got the photo of my home but it's okay if you use it. GREAT advice on the First Time Home BUyers combining that challenge with buying a home that needs rehab. In fact a couple I have been working with for about 6 weeks just decided they no longer wanted to follow that trail and are now looking for a home which needs nothing more than paint or carpet. Good job Darin!
Hey there Ken!
Thanks for the compliments... You know, being a 1st time home buyer has enough challenges, that most people dont realize what NEW ones will come up!!
It is better to warn & possibly LOSE a client, than move forward, and lose them because they get frustrated & upset!! :)
Thanks again!
Darin
Good Job getting the word D-Man and a great job spelling it out so accurately. So few lenders will actually escrow repairs but it's a great way to set yourself apart from the pack.
Gerry Suarez, Jr.
Your FHA Loan Pro!
Thank you very much senor Suarez!
YOu know, this program ROCKS! The more Realtors that SELL THIS PROGRAM FOR US, will really aid home values on the REO's, and allow them to sell these homes more easily, and quicker1
THANKS! i THINK THE KEY THOUGH IS, THAT EVERYONE UNDERSTAND THE LENDER SPECIFIC ISSUES!
Taylor Bean & Whittaker as you know, do these as well. But it is my understanding that they are alot slower!
Darin
Nice job Bucky..who knew ? Not many or make that ANY lenders bother to tell us things like this that make Everyone's job easier...aw shucks, you have made me a subscriber !
You guys are awesome! Thanks so mucb for the compliments, and the new friendship!
This is truly an awesome product, and really needs to be utilized more often!
I appreciate the kind words, and hope you and YOUR readers find it useful!
Bucky....aka; Darin
I think that the key is that people must work with someone who has experience with these loans. After reading your post I think we all know who our go-to guy is.
Thanks for the post. There are parts of bucks county thta would qualify for these programs.
Michael,
Thanks so much for the compliment! You didnt used to be with Countrywide did you?? Just curious....
Yes, I have closed a ton of these loans...Everyone involved in the transaction, just needs to be kept up to date ALOT more regularly, and you HAVE to know what you are doing..or you are doomed!
Thanks again!
Darin
Gita, THANK YOU VERY MUCH for stopping by and commenting!
I would suggest also on any property you have LISTED, putting IN THE LISTING COMMENTS that the PROPERTY qualifies for 100% USDA financing! Then, team up with your lending partner to add his/her contact # in there to answer questions on it! This way, if they are AFRAID to talk to the Realtor for the fear of the "hard sell", they will STILL call the lender for info...then, they in turn, an turn them BACK TO YOU EVEN IF they dont buy that house! Obviously, they are STILL in the market! And, an even BETTER add on to this equation, would be a CALL CAPTURE SYSTEM!!
Thanks again!>>>keep selling!
Darin
Dude....great stuff. USDA makes such great sense.
Larry, Thank you! Nice of you to say!
After the other comments left on Jason Sardi's blog..I thought it important to reactivate this blog from before!
Thanks again!
Darin
Darin, Great information! This is especially important with the plethora of bank-owned properties on the market that need a bit of work. We'll definitely put this to work. Thank you!
Lisa- Thanks so much for your comment! I totally agree with you! Perfect for REO's! However, note...the external factor! If you EVER have a question, do not HESITATE to contact me at darin@osmwi.com!
Thanks again!
D
Bucky,
I'm confused I work in a market that is not rural, what are the guicelines for this? Does it have to be used onloy outside metro areas? Thanks, Bill
HI Bill,
Thanks for stopping by!
A FEW VERY BASIC rules of thumb.
It does NOT have to be RURAL first of all!
Also, here are two links, before I get started.
Link#1 click here * this is for Missouri!
Link#2 click HERE * this is even a BETTER ONE FOR YOU!
1. They look for populations under 15k. However go UP to 25k. Hence, a smaller suburban town, attached to a major city, MIGHT WORK! The Rural Development website actually, has a PROPERTY ELIGIBILITY area, that allows you to put in ANY address anywhere, and see if it qualifies! MAJOR METRO AREAS will not qualify!
2. The income qualifications vary from County to County and State to State. Again, the website has eligibility for it as well! If you have a LENDER PARTNER that you work with...I would have THEM pull this information up, and work WITH THEM some night to go thru this!~ If you dont have a Lender that you work with on a regular basis, let me know...and I wil help line one up for you in your area that KNOWS what they are doing! (THAT IS THE KEY)
3. Improving a house at the time of purchase and ESCROWING for those repairs, is a very touchy deal. It varies from Lending Source to Lending Source. In other words, Wells Fargo...doesnt escrow for repairs...EVEN THOUGH THE USDA says it's okay! Wells, has merely taken a more...ummm..conservative approach! HOWEVER< JP MORGAN CHASE will escrow up to 10% of the purchase price...So, to answer your question, the guidelines are DIFFERENT AT THE USDA (much more aggressive) than that of the LENDERS! I KNOW>>>it doesnt make sense!!!! argghhh
This is an AWESOME PROGRAM! Great to use on REO's or eyesores in the neighborhood...Mainly driven though towwards exterior items,and/or saftey or weatherization items like roofs, siding, windows and such!
THIS IS A FANTASTIC PRODUCT especially for FHA appraisal fallout as well!
0 down..financing the improvements?? SOunds good!
Whatever direct questions you have...FEEL FREE any time, to email me at Darin@osmwi.com
I tell everyone to GOOGLE IT...type in : Rural Housing, (then your state name)
THE GUARANTEED PROGRAM is the one you want!
Thanks so much commenting!
D
My question about rural housing is how long is the pre-approval good for and the credit that the lender pulled, is it 90-days?? just a lil curious how that works.
Thanks
Amanda
Hello Amanda,
Sorry it took me so long to answer your question, but I have been out of town! :)
Anyway, NORMALLY an approval issued by the USDA is good for 90 days!
Your question is very difficult to answer in a short response...so HOPEFULLY this will help..and sorry so long!
1. A PRE- Approval is NOT issued by the USDA, it is NORMALLY issued by your bank, lender, mortgage banker, broker, or correspondent lender....That said, here is how it works...
Let's say you go to your bank, or mortgage Banker...they will pull your credit, and issue you a PRE-APPROVAL either based on their "in house" underwriters opinion, but normally your credit must include a FULL application, and ALL income reltated documents...THEN, that lender, or SOME LENDERS can actually UNDERWRITE the credit and the application, which really only leaves underwriting the house later! This is a good thing! I ALWAYS recommend going to a lender who will do this! Of the big BANKS that underwrite the USDA loans, CHASE while difficult to deal with, is only one of the few remaining companies that will issue a CREDIT & INCOME approval. ALL OTHER PRE APPROVALS are just an opinion of the person or persons that are "looking" at your loan!
AS WITH MOST LOANS THO....this will vary from lender to lender, as is technically referred to as a "lender overlay".
Length of time since the credit pull will also vary, but when it comes to the USDA, if I HAD pulled credit, and sent you in for an approval on INCOME & APPLICATION & CREDIT< the conditional approval I GET BACK from my funding source (Like Chase)...tells me HOW LONG my credit is good for!
The other issue is SOMETIMES, like with WELLS FARGO and others, they REQUIRE THEIR OWN credit to be pulled ON TOP OF THE ONE YOU ALREADY HAD PULLED! Each lender has different rules on this also! That is ONE OF THE MANY problems in dealing with banks...lenders etc...today! YOU MUST be working with someone who adequately explains this to you...
These are TERRIFIC brief questions, that require LONG answers! LOL...sorry about that!
I HOPE I HELPED! I can be reached at 919-306-5731, on my personal cell phone#
Telll me MORE about your situation at any time!
Take care,
Darin
hello
have discover a past appraisal of my properties--jp morgan name was attached. can I find a recod in usda?