There are many myths that surround the USDA Guaranteed Loan, one of which is that you must be a low-income borrower. In reality, you can make as much as 115% of the average income for your area and still qualify. In many areas, this means $78,200. However, it can mean as much as $202,250 in some areas. Compare Offers from Several Mortgage Lenders. The USDA breaks income categories down into three categories: Very low income Low income Moderate income The borrowers in the … [Read more...]
Is there a Maximum Loan Amount for USDA Home Loans?
USDA loans provide 100% financing for low to moderate income families. It’s a program that is meant to be a ‘last resort.’ In other words, if you qualify for any other program, you cannot use USDA financing. If you do qualify, though, you probably want to know if there is a maximum loan amount. Compare Offers from Several Mortgage Lenders. Technically, the USDA does not maximize how much you can borrow. However, they do so in a roundabout way. They restrict who is eligible for the program … [Read more...]
The Top Reasons USDA Lenders Turn You Down
Loan applications get turned down every day, but USDA loans have a unique aspect about them. If you think you may be eligible for this program, keep reading to learn the most common reasons USDA lenders turn loan applications down. Looking for Current Mortgage Interest Rates? Click Here. What is the USDA Loan? First, let’s look at how the USDA loan works, as it’s a unique program compared to any others available today. USDA loans provide 100% financing for borrowers that make less than … [Read more...]
How Long do USDA Home Loans Take to Close?
If there’s one question most new homebuyers have, it’s ‘how long does it take to close the loan?’ Now if you are looking at a USDA loan, you’ve probably heard the myth that these loans take ‘forever’ to close. The good news is that they are wrong. It doesn’t take much longer than any other loan. Looking for Current Mortgage Interest Rates? Click Here. The one difference between the USDA loan and any other loan is that the USDA must approve the loan. After the underwriter approves it, the … [Read more...]
What are the USDA Mortgage Income Limits?
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 … [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. Compare Offers from Several Mortgage Lenders. Verifying Your Income The main reason lenders require the IRS Form … [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...]
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