Posted on: 09th Nov, 2008 03:32 pm
Hi all. I was wondering if someone can tell me about the USDA Rural Housing Loans. I have been looking into buying a home for some time now. Problem I am running into is the homes I can afford all need work and they wont go FHA. I have a middle score of 655. Been at my job for almost 5 yrs and been in the same line of work for 13. I am married with 2 children, wife is unable to work so I am the sole provider for my household. I make 55k year salary and have been prequalified for a $180k.
I am trying to stay in the $750-$850 range as far as a mortgage payment goes. I was reading about the USDA Loans and how they can be as low as 1%. I went to their site http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&urlToLoad=http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm&NavKey=loan@21
and I qualify for their Guaranteed Loan program with a houshold of 4 with my income. I have talked to 2 different lenders about this and they dont seem to know much if anything about it. If I am able to get into this program I would be able to buy a home that doesn't need $15-$20k worth of work as soon as you move in. I guess or am hoping someone here can help me with understanding this better. Any and all help is appreciated. Thanks
Marvin
I am trying to stay in the $750-$850 range as far as a mortgage payment goes. I was reading about the USDA Loans and how they can be as low as 1%. I went to their site http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&urlToLoad=http://www.rurdev.usda.gov/rhs/sfh/brief_rhguar.htm&NavKey=loan@21
and I qualify for their Guaranteed Loan program with a houshold of 4 with my income. I have talked to 2 different lenders about this and they dont seem to know much if anything about it. If I am able to get into this program I would be able to buy a home that doesn't need $15-$20k worth of work as soon as you move in. I guess or am hoping someone here can help me with understanding this better. Any and all help is appreciated. Thanks
Marvin
Hi mreeves!
Welcome to forums!
Guaranteed Loan programs are also known as 502 loans and are available to people who have low income to purchase homes in rural areas. You can use the funds from this loan to build, repair, renovate or relocate a home. It can also be used to purchase and prepare sites, including providing water and sewage facilities.
The applicants for loans may have an income of up to 115% of the median income for the area. It should also be noted that families must be without adequate housing but will be able to afford the mortgage payments, including taxes and insurance. Applicants should also have reasonable credit histories. The loan is given for a 30 year period and the interest rates are set by the lender. No down payments are required.
Under this program, housing must be modest in size, design, and cost. The Rural Development officials have the authority to approve most Section 502 loan guarantee requests.You can contact them to get the loan.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Guaranteed Loan programs are also known as 502 loans and are available to people who have low income to purchase homes in rural areas. You can use the funds from this loan to build, repair, renovate or relocate a home. It can also be used to purchase and prepare sites, including providing water and sewage facilities.
The applicants for loans may have an income of up to 115% of the median income for the area. It should also be noted that families must be without adequate housing but will be able to afford the mortgage payments, including taxes and insurance. Applicants should also have reasonable credit histories. The loan is given for a 30 year period and the interest rates are set by the lender. No down payments are required.
Under this program, housing must be modest in size, design, and cost. The Rural Development officials have the authority to approve most Section 502 loan guarantee requests.You can contact them to get the loan.
Feel free to ask if you have further queries.
Sussane
Hi mreeves!
I agree with Sussane. You can contact the rural development officials for the guaranteed loans. To know the median income of the area, you can have a look at given link below:
http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm
Once you open the link, you will have to chose your respective state and come to know the median income of the state.
This community also has a number of lenders who offer different types of loan. You can seek a no-obligation free mortgage consultation from them. That may help you to get an idea about the loan that you can get.
Thanks
I agree with Sussane. You can contact the rural development officials for the guaranteed loans. To know the median income of the area, you can have a look at given link below:
http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm
Once you open the link, you will have to chose your respective state and come to know the median income of the state.
This community also has a number of lenders who offer different types of loan. You can seek a no-obligation free mortgage consultation from them. That may help you to get an idea about the loan that you can get.
Thanks
And one of the best parts about USDA loans is that you pay no monthly MI payment which saves you at least $50 bucks a month.
You have this wrong on here, Guys. The USDA Guaranteed loan is NOT done by the USDA directly; the DIRECT USDA loan is the one that they administer. You are giving incorrect information here!! I am a national trainer for USDA Rural Housing Loans and I also originate quite a few of these on my own and it is the DIRECT loan that is for the lowest income applicants. This gentleman qualifies for the GUARANTEED loan, he says in his post.
I work with loan officers and brokers across the country on this program and can refer you to someone that works them in your state.
Sue
[Promotional text deleted as per forum rules. Thanks.]
I work with loan officers and brokers across the country on this program and can refer you to someone that works them in your state.
Sue
[Promotional text deleted as per forum rules. Thanks.]
Here's another scenario - I live in AZ and am married. My husband is in financial crisis after losing his business. I am trying to get preapproved for a USDA loan on my own in the event we separate. I've been given different answers on my question: will they look at his debt/income or consider the loan based solely on my credit/income?
Hi Kel,
As you will be taking the mortgage in your name alone, then the lender will consider only your income and credit. The lender will not look at your husband's credit.
As you will be taking the mortgage in your name alone, then the lender will consider only your income and credit. The lender will not look at your husband's credit.
Does that apply even if AZ is a community property state?
Hi Kel,
Arizona is a community property state. In that case, if you want to buy a property solely in your name, then the lender may ask your husband to sign an inter-spousal transfer deed. To know more about it, check out the given link:
http://www.mortgagefit.com/discuss/interspousal-transferdeed.html
Thanks,
Jerry
Arizona is a community property state. In that case, if you want to buy a property solely in your name, then the lender may ask your husband to sign an inter-spousal transfer deed. To know more about it, check out the given link:
http://www.mortgagefit.com/discuss/interspousal-transferdeed.html
Thanks,
Jerry
my seller said he doesnt want to sell the house with a rural developement loan? is this right? wrong? possible?
Welcome geauxkw,
It's the buyer who would decide what kind of loan he would take. The seller has nothing to say in this regard. However, if you are interested in buying the property, you can try for a FHA loan or a conventional loan.
It's the buyer who would decide what kind of loan he would take. The seller has nothing to say in this regard. However, if you are interested in buying the property, you can try for a FHA loan or a conventional loan.
on the contrary, if a seller of a home is aware that a prospective buyer wishes to do a rural housing loan, then that seller is perfectly within his or her rights in rejecting a bid from that buyer.
USDA is currenthly out of money right now even thu Obama's stimulus plan guranteed 500 million to come to that exact program they have not got it yet. I learned this the hard way got qualified took a miracle long process and not very informitive then had a contract on a house and USDA hit me with the "Were out of money thing" Great program with great rates as long as there not broke which seems like they stay that way. Told me 90-120 day before they get funds but thats not guranteed. Builder voided my contract and put the house back on the market.
You don't need money from USDA for a Guaranteed loan..they go through banks...
Hello...
Please ...does anyone out there have an answer to these questions?
This is part of my dilemma. I am pre-approved for the USDA loan up to 100,000 ...but I have already lost out on many different homes via many different reasons ...here is a quick rendition of a couple homes.
One house via being out bid by another offer on same home ... second home offer ...garage conversion w/ no record of permits because it was done before permits were required. My lending institution (Prime Lending whom I qualified through) will not lend due to lack of recorded permit.
Now I am about to make an offer on another home that is said to not be able to go either FHA/VA ...but will go conventional, cash ...or ? Anyway ...Problem ...I am gun shy :(
Does anyone know what repairs are allowed on a USDA loan ...and if so ...what repairs are permitted?
Also would like to know if someone knows if a home will go USDA if home in question needs an appliance (Stove) ...and some drywall repair (one Sm. area in one of bedrooms, approximately *18in + 36in* ...cut hole due to leaking water line ...line has already been repaired ...did not finish wall patch.)
I thank you for any information you can give me in this matter
Sincerely, SBS :D
Please ...does anyone out there have an answer to these questions?
This is part of my dilemma. I am pre-approved for the USDA loan up to 100,000 ...but I have already lost out on many different homes via many different reasons ...here is a quick rendition of a couple homes.
One house via being out bid by another offer on same home ... second home offer ...garage conversion w/ no record of permits because it was done before permits were required. My lending institution (Prime Lending whom I qualified through) will not lend due to lack of recorded permit.
Now I am about to make an offer on another home that is said to not be able to go either FHA/VA ...but will go conventional, cash ...or ? Anyway ...Problem ...I am gun shy :(
Does anyone know what repairs are allowed on a USDA loan ...and if so ...what repairs are permitted?
Also would like to know if someone knows if a home will go USDA if home in question needs an appliance (Stove) ...and some drywall repair (one Sm. area in one of bedrooms, approximately *18in + 36in* ...cut hole due to leaking water line ...line has already been repaired ...did not finish wall patch.)
I thank you for any information you can give me in this matter
Sincerely, SBS :D
Hello mreeve28xx
If you are interested in a USDA loan you should probably know that you only need to fico score of 620 to qualify. Its an awesome zero money down home loan program. As far as I know it is only eligible in rural areas. But this program most likely differs from state to state. Sincerely, SBS
If you are interested in a USDA loan you should probably know that you only need to fico score of 620 to qualify. Its an awesome zero money down home loan program. As far as I know it is only eligible in rural areas. But this program most likely differs from state to state. Sincerely, SBS