USDA/Rural Loans In Connecticut

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

 

At McCue Mortgage we have always been able to do USDA or Rural Loans as they are also known, in conjuntion with a Connectiticut Housing Finance Authority Loan (CHFA), but not the stand alone or also know as a Market Rate USDA Loan.  The difference between the two is that CHFA/USDA is only available to First Time Homebuyers and the stand alone USDA Loan is available to everyone, as long as it is their only home. However, as of October we will be able to do both the stand alone USDA and CHFA/USDA Loans for our Borrowers in Connecticut.

This is a great opportunity for us at McCue Mortgage because now we are able to offer to both our First Time Homebuyers and Existing Homebuyers a no money down 100% finance loan product.  We will be following the USDA Guidelines with the exception of Credit Scores.  USDA allows for a 620 Credit Score, but we will be requiring a 660, otherwise all other USDA Guidelines will be followed.

 

 

New USDA/Rural Guarantee FEE & Monthly MI As of

October 1, 2011

 

USDA allows a Borrower to Borrow:  

  • Up to 102% Loan To Value (LTV).
  • Can role in Closing Costs & Repairs if it can be supported by the appraisal.
  • Does not have a maximum purchase price.
  • .40 Monthly Mortgage Insurance (PMI).
  • Qualifying Ratio's are 29/41 and above with a Ratio Waiver.
  • Minimum 660 Credit Score.

 Properties that are eligible for USDA loans are:  

  • Existing homes
  • Condominiums
  • Townhouses
  • 1/2 of a duplex
  • Modular homes
  • New construction.
  • New manufactured homes built to HUD Code.  

Even though USDA does not have Sale Price Limits, it does have Income Limits by household size, and they may differ from County to County and State to State.  Income Limits Include:  

  • ALL household income.
  • Seasonal/Overtime/Bonus income may be averaged based on verified history.
  • Pending pay increases may be used as a compensating factor.  

USDA Appraisals are done by FHA approved Appraisers and share many of the new FHA relaxed appraisal requirements, as well as further relaxing requirements of their own:  

  • Missing Handrails
  • Cracked windows
  • Dripping faucets
  • Peeling paint on door frame/windows (only for houses built post 1978)
  • Flat roof on garage, if it could not be inspected
  • No smoke detectors
  • No GFI's in kitchen/bathrooms  

Additional Inspections that MAY apply:  

  • Septic - only if the Appraiser/inspector requests it.
  • Well Water - ALWAYS test well water.
  • Termite inspections are only required if State Law requires them, or the Appraiser/Inspector sees active infestation.

 

 ******************************************************************************************************************

Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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Topic:
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Location:
Connecticut
Groups:
Realtors®
Mortgages
1st Time Buyers
Real Estate Rookie
USDA Rural Development Loan Group
Tags:
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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

The USDA loan is a great loan George.  I did one (well, I didn't do it the lender did) for a client of mine a couple of years ago.  I was shocked to find the areas in San Antonio that allowed them.  When one thinks rural loan, one has all kinds of pictures in their mind and this was nothing like that :)!  It's terrific that McCue Mortage is going to be able to handle them for first and subsequent buyers now :)!

Sep 20, 2011 08:44 AM #1
Rainmaker
797,156
Barbara Altieri
RealtyQuest, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- I am not too familiar with the USDA so thanks for this very informative post.  I will print for future reference. Also, thanks for the map showing the eligible towns.  Do you have more information on the CT county income limits?

Sep 20, 2011 02:34 PM #2
Rainmaker
833,437
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Chesterfield, MO
SelectAnn.com

George,

Where can I get a map like that for my area?

Ann Hayden in Wildwood, MO

Sep 20, 2011 04:37 PM #3
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Brenda I was surprised as well the first time that I looked at the map and saw how much of Connecticut was covered

Barbara, they have a revised list which I do not have yet, but when I do I will post it.

Ann this is a link to the home page for your area, maybe you can get information here

http://www.rurdev.usda.gov/mo/rhlgp.htm

Sep 21, 2011 12:51 PM #4
Rainmaker
1,243,719
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Huntsville AL - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

George, after looking at the map of USDA eligable areas I can certainly see why this is so important.  It's also nice to see how the product is opening up to more buyers.

Sep 21, 2011 01:22 PM #5
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John Carter
IBM - Pine Valley, NY
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