To all of you out there who have and do use USDA financing for your clients, and to all who should consider it, to quote Bob Dylan
the times they are a changin
and you best pay attention
the first and biggest change is with the property eligibility maps
applications received beginning October 1, 2014 will be subject to the new eligibility maps
and that's not received by your lender, but rather received at USDA
should get you there
if not google...USDA eligibility
if that doesn't work and you're anywhere in Florida, just call Jay (that's me-239-745-5646) and I'll check it out for you.
So here's the big deal
properties which are currently eligible may no longer be, and properties which are not eligible may be.
just as a refresher here's a couple of the plus' with USDA
*100% or up to 102% financing (depending on the appraisal)
* 640 scores (sometimes lower)
*the (2nd) lowest monthly payment for low/no downpayment
*seller can contribute to costs
the lowest monthly payment available, and feel free to correct me if you think I'm wrong, is a VA loan for a disabled Veteran. This loan has no funding fee, and no MI.
the USDA payment has an upfront guarantee fee, and montly MI which is very low
the monthly fee for FHA is 1.35% and the monthly for USDA is .04%-that's a big difference.
Okay now, here's one of, if not my favorite change
Everybody in the pool!
I had a conversattion with a USDA rep at a Realtor presentation awhile back. He had said contrary to popular opinion USDA allowed pools.
well not so fast now
they did (technically) but the appraisal needed to exceed the purchase price by the value of the pool, as established by the appraiser.
good luck with that
Here's the news straight from the horses mouth, or in this case from the USDA release dated July 28, 2014
*in ground swimming pool restriction has been removed
This is effective September 1, 2014
So remember those dates, and check out your properties on the eligibility site, and remember if you don't want to just call that Jay guy.
Also, for non VA disabled buyers, this could/should be their lowest payment
So, we've got some important changes and just
keep on rockin with USDA