USDA Home Loans

USDA Home Loan Changes In NC Coming

May 7, 2012 By Leave a Comment

This state has grown Soooo much, that when the 2010 Census maps were drawn up, and analyzed, it showed that 21 Communities in NC will lose the opportunity to get mortgage loans approved using the USDA Home Loan Program starting October 1, 2012. 

Congress is currently considering the Senate USDA Appropriations bill, S.2375 which includes a grandfathering provision.  The provision is for places that have gained population and would otherwise become ineligible for USDA Home Loans.  This bill would keep them eligible through the end of September 30, 2013.

Without this “grandfathering” delay – on October 1, 2012, many areas in NC will loose eligibility for USDA Home Loan financing.  The current proposed List includes:

  • Belmont

    NC Counties Loosing USDA Home Loan Financing

    NC Communities that can NOW get mortgages with the USDA Home Loan Program could LOOSE that option on October 1, 2012 with new guidelines for areas who have seen a Population Change!

  • Clayton
  • Eden
  • Fuquay-Varina
  • Hendersonville
  • Holly Springs
  • Hope Mills
  • Knightdale
  • Leland
  • Lenoir
  • Mebane
  • Morganton
  • Mount Holly
  • Murraysville
  • Newton
  • Piney Green
  • Reidsville
  • Smithfield
  • Summerfield
  • Tarboro
  • Wake Forest

The folks in these areas need to be aware of this coming change – because it will likely make it more difficult for some people to purchase homes there!  USDA is a 100%, no downpayment program designed for folks who have pretty good credit, good jobs, and want to live in more “rural” areas of NC.  I think it’s a great place – but frankly, I’ve never thought of Tarboro, or Belmont (for instance) as huge Metropolitan areas – so I was surprised! (See the Current USDA Eligibility Map for NC)

Here’s the actual report from USDA Single Family Homes.  Is this one of those “Good Problems To Have” kinda’ things?  For many areas, this is THE mortgage program of choice, and it’s why certain subdivisions in Holly Springs and Wake Forest (for instance) have been so popular!

If you are looking for a USDA Home Loan in North Carolina – call Steve and Eleanor Thorne!  919 649 5058 – we know the USDA Home Loan program requirements, and we can help you get pre-qualified to buy your dream home in NC!

 

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USDA No Money Down Mortgage

April 26, 2012 By 8 Comments

Not For FarmsWe’ve helped many customers buy homes with an old program offered through the USDA… not to buy farms… HOMES.

The Rurual Economic Development Fund is what it use to be called, now it’s just a part of the USDA RD Home Loan Program, and the goal is to provide mortgages, and incentives for folks to purchase homes in less “densly” populated areas!

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest .  All of Fuquay and Garner qualify for a NO MONEY DOWN, USDA mortgage… parts of Durham qualify (look at the areas around Briar Creek!) and all of Johnston County qualifies.

Again, it’s a NO MONEY DOWN loan, with NO PMI!  One of our customers was just quoted in the WSJ about this program!  He said, “I couldn’t believe it until I got to closing!”  He only paid $1200 out of pocket to get into a very nice $228,000 home!

Qualifying for a USDA home loan, is fairly easy.  You need to meet the Income Requirements, and the Minimum Credit Score is 620.

Remember!  If you are a first time homebuyer, or you have not owned a home in the last three years, you might qualify for the NC Housing Finance Agency Mortgage Credit Certificate!

Looking for Today’s Best Rate Mortgage Loan in Raleigh?  Call Steve and Eleanor Thorne, 919 649 5058 - we know all of the rules, we make dozens of these loans monthly, and we can help you with your new home dreams!  Connect with Us on Twitter!


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“Compensating Factors” For USDA Home Loan Approval

April 11, 2012 By 1 Comment

compensating factors usdaAt the very end of the USDA RD Home Loan Underwriting Guidelines there’s a section that’s titled “Compensating Factors.”  This brief section is for the situation where a borrower is just outside the guidelines to qualify for a USDA Home Loan, meaning  someone with housing and debt ratios higher than 29/41.

We’ve seen folks who have income we can’t count – maybe they’ve only worked at a part time job for a year, or they receive bonus checks, but haven’t been paid for their bonus this year, or they are eligible for a raise in 90 days… folks who needed us to look at their situation a little differently.  In those “common sense” mortgage underwriting scenarios, USDA has this to say about Compensating Factors:

Debt ratio waivers may be requested for loans with ratios exceeding program guidelines of 29/41 when compensating factors are present in the file. Applicants with credit scores of 660 and higher do not require additional compensating factors to be identified for debt ratio waiver requests. If co-applicants have a credit score of 659 or below, additional compensating factors should be documented to further support the ratio waiver request. There is no minimum credit score required to be eligible for a debt ratio waiver request. [Read more...]

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Buying A Horse Farm In NC

March 30, 2012 By Leave a Comment

buying a horse farmSeveral of the agents we work with currently have listings for horse farms in North Carolina.  Financing these properties can offer unique challenges.

Our daughter rides, and so we understand the unique challenges of finding the right “home” (barn).

When you’re financing a farm, the first thing we need to know is if this is going to be income producing property. If it is – meaning you are going to lease stalls, have trainers, organize lessons, or stud, then it’s a whole different conversation from where I’m going with this post. (Call us, 919-649-5058 and we’ll get specific details. If we can’t help you – we’ll set you in the right direction.)

If you’re purchasing a farm, chances are it’s in a rural setting that might qualify for a USDA home loan. These are 100% loans, BUT (there’s always a but) there are income restrictions. If you are a family of 4 (with 2 children under 18) in Johnston County, NC the maximum income allowance is $91,850. USDA does consider child care allowances, and part time income, bonuses, overtime – so if you are considering a USDA home loan, and your household income is more than $52,000 contact us before you make an offer so we can double check and make sure you qualify for this loan program.

VA also offers 100% loans to veterans. There are no property “location” restrictions, and there are no maximum income restrictions – you just have to be a qualifying veteran or surviving spouse. The maximum Veteran Home Loan that is a 100% loan is $417,000 and the qualifying debt ratio is 41%… meaning they don’t want more than 41% of your total GROSS income going towards expenses, including child care, utilities, house payment and consumer debt (like cars, boats, trailers, credit cards). [Read more...]

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100% Loans Western Wake County, NC

February 27, 2012 By Leave a Comment

usda loans wake countyHere’s some GOOD NEWS!  There are TONS of places that allow USDA 100% loans in Western and Southern Wake County.

From the picture to the left, the areas marked in “peach” are not eligible… However, large parts of Apex clearly do! (see Kelly Road?)

The line that runs from the bottom left corner up towards the right is the County Line for Wake and Chatham County.  All of Chatham County qualifies for USDA 100% loans!

If you are interested in purchasing property – NOW IS THE TIME.  A friend of mine recently said, “I’m not sure we will see prices this low, and interest rates this low – combined with the $8000 Down Payment Assistance the State of North Carolina is giving first time homebuyers again in our lifetime!”  I think he might be right.  There’s never been a more perfect time to buy!

If you need some additional information on qualifying for USDA home loans click here.   If you’re ready to be pre-qualified, CALL US TODAY!  Steve and Eleanor Thorne, 919-649-5058.

If you want to see if the property you are considering qualifies, Watch this Video:

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USDA Streamline Refinance No Appraisal 2/12

February 6, 2012 By Leave a Comment

kids cost moneyNC Residents are getting an added benefit from the Obama Administration during the next 24 months.  In a program announced for the economically hardest hit counties in the Country, last week USDA announced a new Streamline Refinance Program!

Under the new program folks refinancing their USDA Home Loan will need to meet the following guidelines:

  • No appraisal required – the current residence must be in a USDA “Footprint Area” and currently be insured under the USDA program.  So refinancing from a Conventional loan or a FHA loan to USDA will not work under this program.
  • No Credit Report Required – the current mortgage must be current, and all of the previous 12 months of mortgage payments need to be made on time.  That’s all.  We just verify that you made your house payments on time.
  • Employment Verification Required – we will need to verify that you are employed, and drawing enough money to meet the underwriting guidelines… meaning we must prove that you have enough income to make your house payments.
  • Can not take cash out -  All we can do is finance your current loan balance, and the new Guarantee Fee (PMI) which is 1.5%.

This should be a pretty quick process!  We just did a comparison for a homeowner who purchased their home in June of 2009 in Johnston County.  Their current interest rate is 5.75%.  Even with the change in the USDA Guarantee fee (now there’s monthly PMI for USDA Home Loans) they are saving over $130 a month, and we are not having to charge them ANYTHING!  So the balance on their mortgage isn’t changing much, and they don’t have to worry about an appraisal… and they get to skip a mortgage payment and lower their house payment by $130 (and change) a month!  WHAT A DEAL!

If you want to see if you qualify for this program in NC – call Steve Thorne, USDA Home Loan Expert in NC 919-649-5058.  We have the best mortgage rates available, and we know how to work with USDA!

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100% Loans In Wake Forest, NC

January 29, 2012 By Leave a Comment

Are you looking for a home in the Wake Forest Area?  Great NEWS!  This map shows the property that is eligible for USDA 100% fianancing!  The area that is NOT “peach” qualifies!

See that line where the railroad tracks go from “peach” to white.  That’s Roger’s Road.  This is a GREAT part of Wake County – property values are APPRECIATING here (unlike what you might hear about other parts of the country!), and values are continuing to go UP!

There are income restrictions for these loans, and they are intended for those who have not owned a property in the last three years.  If you would like more information about qualifying for this loan click here.

If you would like to see if the specific property you are interested in qualifies for this loan program, click here.

If you are interested in getting prequalified for a USDA home loan – please call Steve and Eleanor Thorne, 919-649-5058.  It’s a GREAT TIME to buy Real Estate!

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Using USDA To Purchase A Home After Foreclosure

January 20, 2012 By Leave a Comment

If you are one of the millions of families that lost their home in the last couple of years to Foreclosure… you might think…foreclosure

Been There – Done That

You might not want to own a home again!

But if you’re one of those folks who truly does want to purchase again, here’s some potentially good news.

USDA says that they will allow you to purchase a new home to owner occupy, after foreclosure if you’ve done the following things:

  • Wait 3 years from the date of the Foreclosure.
  • Re-establish Credit
  • Have Credit Scores that meet the guidelines (as of the date I am writing this, that means you need a 620 score.)

Here’s the other part… you need to DOCUMENT what happened, and why you ended up in a Foreclosure.

FHA Requirements for purchasing after Foreclosure

“FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit…This does not include the inability to sell a home when transferring from one area to another.”

So you MIGHT be able to buy after two years, but we see VERY few exceptions made on this time frame. [Read more...]

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NC Counties That Qualify for USDA Home Loans

January 17, 2012 By Leave a Comment

My daddy always says that we “Get Rural Fast” in North Carolina… one minute you can be neighborhood after neighborhood, and 25 minutes later you are in the country! This works well for those who are looking for a home with no down payment requirements!

Currently – every square mile of 73 North Carolina counties qualify for USDA Home Loan financing! Look at the map below – if there’s no star in the county – the whole county qualifies for this financing!

BUT, as an update to this post, the newest 2010 Census Numbers could be changing where you can get a USDA Home Loan in NC  starting on October 1, 2012!  Yikes!

NC County Map of USDA Home Loans

NO STAR means whole county qualifies for USDA Home Loan

There are five counties that are generally considered part of the “Triangle” in the middle of the state… Wake, Durham, Johnston, Orange, and Chatham.  All of Johnston County and Chatham County qualifies for USDA Mortgage Loans – much of Orange County qualifies, and there are many areas in Durham and Wake county that qualify too!

You can watch a video that explains how to go onto the USDA Website and look up a specific property address!

To learn more about USDA Home Loan Qualifications in North Carolina Click Here.

If you are considering a home purchase in North Carolina, and you want more information on the USDA Home Loan program – please call Steve and Eleanor Thorne, 919-649-5058.  We are NC USDA Home Loan Experts!

 

 

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USDA Home Loan Change in PMI 12/11

December 14, 2011 By Leave a Comment

usda home loansUSDA notified us that they are once again changing their “PMI” for their Home Loan Program.  USDA, like FHA and the Veteran’s Administration don’t actually “make” the guaranteed loans, they just insure the lender against default.  That “default” insurance is just like PMI, and unless you are putting at least a 20% down payment – you are going to have some sort of this insurance,

Earlier this year, the USDA RD Single Family Loan Department announced that for the 2012 fiscal spending year, folks who are purchasing a home would expect to pay the following:

The new fee structure for FY12 is as follows:

·         2 percent Upfront Guarantee Fee for purchase transactions.  This means that if you are purchasing a $100,000 house, the loan will be $102,000; OR, you can pay the 2% out of your pocket… or see if you can get the Seller to pay it.  We are NOT seeing many situations where the Seller is doing this, but if you have extra funds, you can go ahead and pay this off.  Unlike FHA, the Guarantee Fee (or Mortgage Insurance Fee) is not refundable.

·         0.3 percent AnnualFee for purchase transactions.  This means that if you purchase a $100,000 house, with a $102,000 loan on it, you will pay a MONTHLY Insurance fee of $25.50 ($102,000 x .3% = $306 divided by 12 months = $25.50 a month)

Even with this additional fee – USDA is still much lower than FHA!

Like the FHA Streamline Refinance, As of February 2012, USDA Rural Development Single Family Home Program is offering a LIMITED Streamline refinance program.  Because of this, we MIGHT be able to refinance your USDA Home Loan to a lower rate with NO Appraisal!  Please call us for details!

If you’ve been in your home for several years, this might be the time to Refinance! If you have questions about USDA Home Loans, and purchasing a home in NC – please call Steve and Eleanor Thorne, USDA Home Loan Experts in NC 919-649-5058

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