USDA Guarantee Fee Update 8/23/2010

August 24, 2010 by 1 Comment

The Single Family Housing Origination Department of the USDA Home Loan Program announced yesterday that they should have their computer systems up and running to accommodate the changes required by Congress in their fees.

Since the end of May, USDA has been issuing “Conditional” approvals… and because of that, Wells Fargo, Bank of America (and many, many others) are not doing USDA Home Loans.

We are still closing these loans... here’s what the directive says:

Rural Development also is working on a more complete system upgrade to accommodate all provisions of the new law. We expect this full enhancement to be completed as early as possible next fiscal year. While the 3.5 percent up-front fee is sufficient at the current subsidy rate, we must be prepared to make adjustments in later years using the new authority for an annual fee to maintain a zero cost program. We appreciate your role as a lender in responsibly servicing loans in the SFHGLP portfolio and helping us maintain a successful program.

So here’s the headline folks… USDA has the authority to give a lower guarantee fee to “poorer families.”  They also have the authority to charge an ANNUAL (monthly) Mortgage Insurance Fee... they are NOT doing it right now, but reserve the right to do so in the future.

Almost all parts of our state qualify for the USDA Home Loan Program, which offers 100% no money down financing. You will need to meet the income requirements (which vary by county) and you need to have a credit score of at least 620.

If you are considering a USDA Home Loan, Call Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-694-5058.

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USDA Home Loans Orange County NC

August 22, 2010 by 1 Comment

The Mapping system for Orange County GIS and the Mapping System for USDA Home Loans don’t “mash up.” I’m not sure why that is, but some of the roads (as I read them) on the USDA Home Loan Mapping System are indicated as “Not Found” on the Orange County GIS system.  For that reason, I decided to work with the USDA Home Loan Map to show you which areas of Orange County qualify for the program.

In general (and you could probably figure this out) Carrboro and Chapel Hill do not qualify for this 100%, no money down mortgage loan.  MOST of the rest of the county DOES qualify.

Here’s a close up of  the Northern portion of the Orange County NC USDA Home Loan Eligibility map near 70 West

Here’s a closer look at the area directly above Highway 54 in the first map (looks kinda like an > on the map).

The sections marked in “darker orangy” do not qualify for USDA Home Loans. The lighter areas on these maps DO qualify.  If you want to look up a specific home address, please click here.

If you want to know more about qualifying for USDA Home Loans in NC please read the guidelines here.  There are income requirements that vary per county, and the credit requirements are pretty liberal – you need to have (in general) 12 months of clean credit and a credit score above 640.  If you want information on other counties that qualify for USDA Mortgage loans in North Carolina, you will find a map here.

If you are considering a mortgage loan and want to know more about the USDA Home Loan program, please call Steve and Eleanor Thorne, 919-649-5058

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Credit Score Requirements for USDA Loans

March 31, 2008 by 15 Comments

usda home loans ncUSDA loans are perfect for people who want a home in a more rural area.  In Wake County most of Fuquay Varina, Garner, Holly Springs and Apex all fall within the acceptable areas. To find out if the property you are interested in will be in a USDA area you can watch this video.

In general, these are the items that the underwriters for USDA loans are looking for:

  • For an “Automated” (Automatic) Approval a minimum credit score of 620.  With the NC Housing Program, 2 scores of at least 600
  • 1 payment in the last 12 months could have been no more than 30 days late – Exceptions may be granted if you have 620 or greater middle credit scores
  • Chapter 7 and 13 must be discharged for 3 years – Foreclosures must be completed 3 years ago – Exceptions may be granted if your borrowers have 620 or greater middle credit scores.  This is significantly more strict than FHA or VA loans.
  • Collections – Accounts cannot have been placedin collection status within the last 12-months– Exceptions may be granted if your borrowers have 620 or greater middle credit scores. Collections May not need to be paid off. This is especially true for Medical Collections.
  • Judgements – Must should be paid off for at least 12 months Because Judgements can attach to the property you purchase and become a first lien, this can be kind of a big deal… we’ve seen some situations where judgements for 6 years ago did NOT have to be paid off.
  • If the applicant’s middle credit score is under 620 a written verification of rent is required for the most recent 12 months. However, previous Housing History is Not required.
  • Non-Traditional Credit is Acceptable if no credit is available

Unlike Conventional, FHA and VA mortgages – we do have the ability to use “common sense” underwriting with USDA.  We also get the opportunity to use offsetting factors.  So, for instance, if your ratios are tight – we can use the fact that you’ve been on your job for a long time, or that you have a college degree.

If you are considering a USDA mortgage loan, contact STEVE AND ELEANOR THORNE , 919-649-5058 Connect with us on Google Plus or Facebook! 

Remember, the USDA Home Loan Maps could be changing September 30, 2013… in fact, almost 1/3 of North Carolina could LOSE the ability to do USDA Home Loans! Yikes!

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VA Home Loans Left Out

March 18, 2008 by Leave a Comment

The Congress and the Fed and Secretary Paulson all worked miracles to get a stimulus package passed in record time… they forgot one little thing, VETERANS!

Washington Report: VA Loans for Veterans Overlooked

On Capitol Hill, it’s known as the biggest goof-up relating to housing in years: Working with the White House, Congress passed a bipartisan $150 billion stimulus bill that raised mortgage limits for home buyers in high cost areas across the country.

But guess what? The stimulus increased loan maximums for Fannie Mae, Freddie Mac and the FHA to $729,750 from the previous $417,000, but totally forgot about a program that helps finance more than 11,000 homes a month: VA loans for veterans. ”

va loans

This is a fine time to say “Oooops!”  If you are a veteran who wants information about qualifying for a new home – please let us help you.  Not many people in this area are familiar with VA home loans, because we are not located 15 minutes from base – but as “veterans” of this business, Steve and Eleanor totally understand Veteran home loan requriements, and the paperwork that goes with them! (It’s a government program – trust me on this there’s a ton of paperwork!)

“We just blew it, we didn’t catch it,” said one committee staff member who is not authorized to speak publicly.   So for now, the VA limit for 100% financing remains $417,250. (which buys a beautiful home right here in the Carolinas!)

For more information on VA LOANS:  Contact Steve and Eleanor Thorne, 919-649-5058.   Connect With Us on Facebook,  We appreciate your Service!

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USDA More Than a Brand on Meat

March 18, 2008 by 7 Comments

mobile homesAre you looking for a mobile home? It can be difficult to get a mortgage loan for a mobile home – but we CAN help you find a nice stick built home, with a special program!  USDA Home Loans in NC are an excellent choice – and they are 100% – No Money Down Home Loans!

USDA Home Loans were once called Rural Economic Development – and prior to THAT it was called Farmer’s Home – but it’s all the same thing.  The loan is designed for folks living in a more rural setting.  There are TONS of places in North Carolina, and near metropolitan areas like Raleigh and Charlotte that qualify for this program.

Here are the basic guidelines for the USDA No Money Down Home Loans through their Guaranteed Rural Housing program.

1.  Must have two scores at 640, or be able to qualify for the NC Housing Finance Agency funds that will go down to 600.

2.  Must be within income guidelines for the county in which the subject property is located (These tend to be significantly higher than the HUD median income limits).

3.  Subject property must be within an eligible area.

4.  Ratios cannot exceed 29/41 ( although with clean credit they will issue a ratio waiver ).

5.  Foreclosures must be at least 36 months in the past.

Student Loans are treated a little bit differently on USDA No Money Down Home Loans, so we’ll need to get a payment amount for them, even if they are in deferment.  If you have SMALL collections (meaning they are all under $200) then they probably don’t have to be paid… but if there are some BIG ones (thousands of dollars) you will need to talk to us about them.  The underwriter might require a payment plan.

Click here to see if your property would qualify for one of these loans!

If you are interested in a USDA Home LOAN, Contact the NC USDA No Money Down Home Loan EXPERTS,  Steve and Eleanor Thorne 919 649-5058 Connect With Us on Facebook.

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