They're rockin at USDA....cha, cha, cha changes

By
Mortgage and Lending with Fairway Independent Mortgage Company 385907

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

http://eligibility.sc.egov.usda.gov.

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

allllllllllright!!!!!

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 

 

 

 

 

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Topic:
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Location:
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Florida Realtor® Network
Posts to Localism
Tags:
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port st lucie
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Rainer
247,470
Clay R. Seay
Florida Homes Realty & Mortgage - Saint Augustine, FL

USDA is a great program, but slow in general to approve, react to the market and close on time. Last time the cloisng was delayed almost a week due to last minute underwriting document requests.

Aug 05, 2014 09:52 PM #1
Rainmaker
564,692
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey Jay,

This information is very useful for those who are working with buyers using USDA financing.  Thank you for sharing, and best of GREAT success to you in 2014!

Aug 05, 2014 09:55 PM #2
Rainmaker
281,244
Jay Beckingham
Fairway Independent Mortgage Company - Delray Beach, FL
Seniors ROCK!

Clay,

I agree that it can be slow, but if your lender is familiar with the process they can put a little smile in the file to speed things up. call me if you need help with these at any time.

thanks

jay

Aug 05, 2014 09:56 PM #3
Rainmaker
281,244
Jay Beckingham
Fairway Independent Mortgage Company - Delray Beach, FL
Seniors ROCK!

Jordan,

Thank you, and your welcome.

just trying to make all of our lives just a little easier

jay

Aug 05, 2014 09:57 PM #4
Rainmaker
281,244
Jay Beckingham
Fairway Independent Mortgage Company - Delray Beach, FL
Seniors ROCK!

Jordan & Clay,

if you had tried the link and it wasn't working, that has been corrected.

i had to enlist the help of the stubborn irish guy (that lives within me)

jay

Aug 05, 2014 10:00 PM #5
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Rainmaker
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Jay Beckingham

Seniors ROCK!
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