Posted: Sun Nov 09, 2008 4:32 pm Post subject: USDA Rural Housing Loans
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.
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
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.
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%20 limits.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.
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. _________________ For more information on credit repair, please visit my blog, http://creditrepair4u.wordpress.com , or my site, http://freecreditreportnow.org .
(770) 886-3140
Posted: Mon Nov 10, 2008 6:07 am Post subject: USDA Rural Housing Loans
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.]
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?
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. _________________ Procrastination is the enemy of your financial sucess
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
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. _________________ Procrastination is the enemy of your financial sucess
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. _________________ George M. Akerley
Loan Officer
Prospect Mortgage
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444
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.
mreeves28xx
