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another well kept secret; USDA/Rural Housing (it's not what you think)

By
Mortgage and Lending with Christensen Financial Mortgage 385907

 

Okay, right up front let's be clear about this

Rural Housing is not just about "rural" housing. The financing is available wherever the USDA says it is, and in many cases the eligible properties just aren't very rural, or not rural at all.

I'm actively involved in lending on both the east and west coast. On the east coast primarily in Indian River, St. Lucie, and Martin Counties. So let's take a little stroll down the USDA property eligibility map, available on their website.

Well, things look real good from Sebastian to Vero Beach, both east and west of 95. Lots & lots of eligible properties.

In Vero Beach, not so much, but west of 95 and south I see some eligible areas.

Ft. Pierce once again, not so much, but west of 95 looks like a possibility.

There's not a lot of options in St. Lucie, but check out Stuart and south of Stuart, looks like a target rich environment to me.


well; why USDA/Rural Housing, you may ask?

 

100% financing, and more

Seller can pay closing costs and prepaids

great fixed rates

and check out those MI costs...that's a 2% guarantee fee, and .4% annual

you don't need to be a first time homebuyer, but it's a great program for first time homebuyers


Yup

anything I need to know?

the program's not swimming pool friendly, no matter what USDA says.

and there are income guidelines, but they're really not to bad

Okay time to pay attention, and give this some thought.

If the upfront fee is 2% and the annual fee is .4% does a rural housing loan have a lower payment than FHA (even with no down payment)

remember now the FHA has an upfront fee of 1.75% and an annual fee of 1.35%

So is the Rural Housing payment less?

Yup...you do the numbers

and see if you can help make sure


the secret gets out

 

ps; especially to the potential homebuyers 

 

 

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Hi Jay, on "my side of Florida", aka the West Coast, USDA is a very popular financing program.  Buyers are always amazed what neighborhoods are actually included in my area.  USDA is great for first time home buyers especially! 

Jul 05, 2013 11:57 PM
Ric Mills
Keller Williams Southern Az - Tucson, AZ
Integrity, Honesty, and Vast Real Estate Knowledge

It is a great plan for everyone if the property qualifies.  We use it when ever a home is available.

Jul 06, 2013 12:31 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Silvia,

I like both sides of Florida, having spent over 20 years in Southwest Florida. Let me know if I can ever help.

Ric,

I agree it is. in many cases it will offer the lowest payment possible for that type of a program.

thanks

jay

Jul 06, 2013 12:37 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Jay we agree.  USDA is available in almost all of Marion County exept the immediate City of Ocala.

Jul 06, 2013 01:17 AM
Linda De Fusco
Scottsdale, AZ
The Arizona Rainmaker

Rural vs suburbs...USDA gets confused. Rural west of I-17 is not approved , when Subdivision on the east side is. Go figure, Oh, wait a minute, what am I thinking?...we are talking about government!

Jul 06, 2013 02:35 AM
Carolyn Shipp
Source 1 Real Estate - Mineral Wells, TX
Mineral Wells Texas Real Estate

Our county is entirely USDA friendly.  It's good when the funding is there.  There have been many a time when we have had to put something on hold because the funds were unavailable.  Typically, it takes about 45 days for a USDA loan to go through here.

Jul 06, 2013 04:11 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Where should agents get USDA maps for their marketing areas?

Jul 06, 2013 04:56 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I recall being very jealous when I was an agent. We're definitely rural, and this is definitely a low income community, but "Rural Housing" was not available to our buyers. 

I think it had more to do with the fact that we lack a "minority" population. 

Jul 06, 2013 08:58 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Being next to an Army Post, most of our sales are VA, but USDA is second. Our town, and a few close by and like it, still qualify, even inside the city limits!!

Jul 06, 2013 10:34 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Bob,

nice to have that option available so readily.

Linda,

we have Naples Florida eligible, oh well

Carolyn,

we had a couple annoyance type funding issues. nothing too dramatic.

Kimo,

right on the USDA website. both maps an an engine which will identify individual properties and their eligibility or lack there of.

Marte,

I wouldn't think that that would be the case, but...

Travis,

Love those VA's and then the non Veterans 100% financing USDA

 

thanks all

jay

Jul 06, 2013 10:49 AM
MaryBeth Mills Muldowney
TradeWinds Realty Group LLC - Braintree, MA
Massachusetts Broker Owner

Just ran into the swimming pool unfriendliness in Massachusetts with the Rural home loan program, not as many pools as Florida I am sure in Massachusetts but never the less something to become very aware of - it is a great program!

 

Jul 06, 2013 11:43 AM
Johnnie Rosser
RE/MAX EXCEL - Logan, UT
RE/MAX Realtor

I love USDA loans. In my market we have a lot of areas that qualify for USDA loans. I have helped a number of clients get more home then they thought they could by teaching them about USDA loans. The total payment for a USDA loan with no money down is less then the same home with a 5% down conventional loan. It does take longer to get approved, but it is well worth the wait.

 

Jul 06, 2013 03:34 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Marybeth,

I really don't like the way USDA discloses the pool issue in their guidelines, but it is what it is. I just caution buyers that it may be an issue ($$$$$ out of pocket).

Johnnie,

I just posted a payment comparison for government loans. USDA really needs to be discussed with the potential buyers, when available. the payments are lower than FHA.

thanks

jay

Jul 06, 2013 09:33 PM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Jay,

Works well for some properties, but they seem to run out of money later in the year, like some other programs too.

Jul 07, 2013 12:37 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Dorte,

they have run out of money on occasion. this one requires some funding.

jay

Jul 07, 2013 07:43 PM
Dora Griffin
D A Griffin Financial.LLC - Fort Thomas, KY
NMLS 6380

With FHA now requiring permanent MI on some loans even more reason to use USDA/RHS if possible.

Jul 08, 2013 03:09 AM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Dora,

absolutely, it gave the edge to USDA whenever they're head to head.

thanks

jay

Jul 08, 2013 03:12 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Jay, thanks for this valuable information.  I have not worked with a buyer who applied for a USDA mortgage.

Jul 08, 2013 01:27 PM
Jay Beckingham
Christensen Financial Mortgage - Port St Lucie, FL
Seniors ROCK!

Sharon,

you may be leaving some business on the table

thanks

jay

Jul 08, 2013 09:51 PM
BILLY CRITTENDEN
Missoula Valley Properties, LLC - Missoula, MT
Broker/Owner,ABR,CRS,CNE,CNHS,GRI,RCC,SFR,SRS,SRES

Jay,

I too have experienced USDA running short of funds towards the end of the year (even in August) and it does take longer for approval. Thanks for  the post!

Aug 20, 2013 01:53 AM