USDA loans provide mortgage financing for borrowers in a designated rural area and that mean certain income limits. Rather than making sure you make ‘a lot’ of money, the USDA caters to borrowers that don’t exceed the limits they set. Compare Offers from Several Mortgage Lenders. The USDA program is only for those households considered ‘modest.’ In other words, they would not be able to afford a home with any other mortgage program. If a household’s income exceeds the designated limits, … [Read more...]
How to Find USDA Approved Lenders
When you want a USDA loan, you need a specific lender. Specifically, you need USDA approved lenders. You won’t know just from their name or the look of their building, though. You’ll have many choices. Some banks are large, yet others are independent banks that are much smaller in nature. Looking for Current Mortgage Interest Rates? Click Here. What you should care about above anything else, though, is the lender’s record with USDA loans. The USDA has some very particular guidelines you must … [Read more...]
The Lowest Credit Score Allowed for USDA Financing
Do you prefer rural living to the hustle and bustle of city life? You may want to consider USDA financing then. You can borrow 100% of a home’s purchase price with this program! Of course, it has specific guidelines, but luckily, you don’t need a high credit score to qualify. Compare Offers from Several Mortgage Lenders. Want to learn more about this innovative program? Read on. The Minimum Credit Score The USDA requires a minimum credit score of 640. In the eyes of FICO, this is a … [Read more...]
USDA Escrow Holdback Rehab Mortgage Program Guidelines
The USDA provides 100% financing for borrowers in a rural area that meet certain income restrictions. What happens, though, when the appraiser says the home does not meet the USDA guidelines? Normally, you’d be out of luck – no bank would write the loan. Luckily, there is the USDA Escrow Holdback Program, though. With this program, you can buy your home and pay for the repairs all with one loan. Looking for Current Mortgage Interest Rates? Click Here. What is the USDA Escrow Holdback Rehab … [Read more...]
Why do Lenders Need IRS Form 4506-T?
When you complete your mortgage paperwork, you likely feel like you give the lender everything you have. Just when you think you are done, though, they will likely ask for IRS Form 4506-T. This form gives the lender access to your tax transcripts. If you already provided your income information, though, why does the lender need your transcripts? We explore the reasons below. In case you have more queries, you can always contact professionals at Harding Mortgages. Compare Offers from Several … [Read more...]
The Top Things to Consider When Buying an Older Home
Buying an older home often means buying a quality built home. There’s something to be said about the workmanship and sturdiness of the homes built many years ago. Along with the quality, though, often comes problems. Before you sign on the dotted line, take a close look at the following factors. They can help you determine if a home is a good buy or a money pit. Compare Offers from Several Mortgage Lenders. Leaks and Other Problems Leaking pipes or a leaking roof isn’t the only problem you … [Read more...]
What you Must Know About New Construction and USDA Loans
USDA loans offer 100% financing for homebuyers. What you might not know is that you can use the program to buy new construction. However, just like buying an existing home, there are many restrictions. Understanding how the process works and what you can and cannot buy will ensure your success. Compare Offers from Several Mortgage Lenders. A Modest Home Just like with an existing home, the home you build must be moderate. This goes for the land and the house itself. Moderate means it must … [Read more...]
Understanding the USDA Rules Regarding Gift Funds
USDA loans do not require a down payment. They allow 100% financing for an eligible property. However, there are closing costs a borrower must pay. If the borrower does not have them, they may use gift funds as long as they follow the USDA rules. Gift Funds and Compensating Factors The USDA does not allow gift funds to count as a compensating factor. A compensating factor is something that makes your application less risky. Let’s say, for example, you have a high debt ratio. The USDA allows … [Read more...]
Do Condos Qualify for USDA Financing?
The USDA provides 100% financing to qualified buyers in a rural area. What about condos, though? Is the program only for single-family homes? Luckily, the answer is ‘no.’ You can use USDA financing on any type of property, including a condominium. The main factor is that you meet the requirements for the loan and that the property is modest for the area. Eligibility for USDA Financing The hardest part of USDA financing is becoming eligible for the program. It’s not a one-size-fits-all … [Read more...]
How to Get a Farm Loan With a Small Down Payment
Farm ownership is expensive. But, with the help of the FSA, you may be able to secure a farm loan with little money to start. This is good news for many beginning farmers who have little capital to start. The USDA helps make it easier with both Direct and Guaranteed Loans. Getting Help With the Down Payment The USDA requires all beginning farmers to put down at least 5% on the farmland. If you can come up with this amount, the USDA will provide a down payment loan that provides 45% of the … [Read more...]
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