Since our county is approved for USDA loans, and we are now using them more, all the real estate professionals in the county are on the fast track to learn more about them. We had a couple of guys from Ward Lending Group come to our staff meeting today and talk to us about these loans. They also talked about lending in general, and what they as mortgage bankers can do for our clients. Good meeting.
The guys who came to our meeting are from our local branch, Rick Ryan and Randy Seaberg. We have already been sending our clients for these USDA loans, but it was good to go over them again. These are specifically rural loans. They are also -0- down loans, and that’s what makes them so attractive in today’s world. Here is a quick guide to these loans, as we were told today:
- no down payment
- 30 year fixed rate
- 102% Loan to Value (100% plus fee)
- You can finance the closing costs if appraisal is higher than sales contract
- no mortgage insurance (Wow!)
- no cash contribution required from the borrower
- unrestricted gifts — no need to document the sources
- no maximum loan amount
- no reserves required
- competitive rates
Acceptable credit history:
- Show reasonable credit history that indicates willingness to meet obligations as they become due.
- Streamlined credit approval with a middle credit score of 620
- Lack of credit is NOT derogatory
- Ratio limits 29 front, 41 back. Expanded repayment ratios with compensating factors.
- For primary residence only
- 100% Loan to Value plus the amount of guarantee.
Requirements:
- Must be a “stick built” home (Sometimes a brand new manufactured home)
- Primary residence
- Income limits: (Mason County) 1-4 persons is $73, 600; 5-8 persons is $97,150.
- Check eligibility here.
From the above you can see why we are getting more and more fond of these loans in our area, since our county counts as “rural” throughout the whole area. Our other favorite loans, of course, are the FHA loans with 3 and 1/2 % down payments. More lenders are becoming fluent with the loans needed by our clients today, and we at Shelton Land & Homes, LLC are very grateful for this. Keep up the good work, guys and gals!
Tags: loans, no down payment, rural, usda
[...] area this might be helpful when someone wants to purchase a manufactured home, as we cannot use USDA loans (with their -0- down payment) on them. However, it would be just as easy for the purchaser to [...]