Helping NC's Home Buyers!
I tried to find some really cool way to actually draw a line on this Google Map – but allas, I’m not that technically advanced.
The “A” on the Map above represents where you should draw a line for properties that qualify for USDA No Money Down, mortgage loans… until October 1, 2013 If you can “imagine” a line from Highway 1 (Claude E Pope Memorial, also known as the Beltline) over to Kildaire Farm Road… everything BELOW that line qualifies for USDA home loans. [Read more...]
USDA Rural Development Single Family Housing announced late yesterday that they are going to delay implementing any map changes until late September, 2013.
This is GREAT NEWS for folks who are interested in purchasing a home in one of the 40 plus areas of North Carolina that could lose the ability to qualify for USDA Home Loan Financing.
USDA No Money Down Loans really have two parts to the qualifying process. The property must be within the USDA Loan “Footprint,” and the household income can not be more than the limits for that County.
In an effort to update the USDA “Boundaries” (footprint) to match the new census data, over 20 communities in North Carolina grew to the point that they no longer meet the current definition of Rural. In addition to that, some areas might be “re-classified” making almost one third of North Carolina ineligible for USDA Home Loans. [Read more...]
Well, 25 ga-billion calls to Washington and NC USDA underwriting offices later asking about the USDA RD Map Changes, and we finally have an answer!
The delay was “officially” announced yesterday by the USDA Rural Development Single Family Housing Division – saying that unless they change their minds (which could happen – depending on what Congress does about the New definition of Rural) the 2010 Census maps changes will take place September 30, 2013
Here’s what we found as a notice by the Tennessee Office of the USDA regarding upcoming Map changes.
NOTICE: Rural Eligibility Requirements
At this time there is no change to program eligibility maps for USDA Rural Development loans, loan-guarantees and grants.
USDA Rural Development provides services targeted specifically to rural communities. The term rural is defined by law and varies by program based on a number of considerations, such as the program likely economic impact on rural communities and the availability of commercial or other alternative funding options.
By law, every decade the definition of rural is reassessed based on data from the latest US census. USDA will provide guidance concerning the impact of the latest census on eligible areas very quickly after Congress completes pending legislation that reauthorizes specific USDA Rural Development programs.
Until then, please continue to use the same Property Eligibility Maps for business location, housing or water & waste treatment programs… Seen Here [Read more...]
Maybe you heard that we now have QEIII, a $85 billion dollar push by the Fed to help the Economy and the Housing Industry. One headline we read said , “The latest stimulus from the Federal Reserve may spur more home sales, just not to the intended buyers.” Why is that? Because Institutional Investors may see the purchase of these Mortgage Backed Securities as a way to build profit. Investors would sell these bonds for riskier assets, and since the crisis struck in 2007, there’s plenty of risk in housing.
“To the extent that the so-called portfolio balance effect of quantitative easing causes investors to demand alternative assets – such as direct exposure to housing – home sales to institutional investors could increase,” said Paul Diggle, property economist with Capital Economics.
In many parts of the Country, the fastest improving housing markets are growing because of cash buyers. In fact, more than 43% of Phoenix home sales in July were made with cash, up from 40% a year earlier. These Investors are looking at the Annualized Rate of Return on Real Estate, versus other commodities – and the riskier the Investment, generally the better the return.
Traditional investors in mortgage bonds were already looking to buy up properties. Two Harbors, a real estate investment trust focused on agency and private-label MBS, is launching another company to acquire homes and rent them out.
FHFA is the Governing body over mortgages. They are in charge of FHA, Fannie Mae, Freddie Mac – all mortgage types available. They are the final word in licensing for loan officers, and they are suppose to be the ones who are looking over the shoulders of the Banks to be certain they are not taking on too much risk with mortgage loans.
They announced at the end of August that Fannie and Freddie will be charging an additional fee starting in November… you may be scratching your head and wondering why that’s important.
When you’re shopping for a mortgage, how your loan is structured affects your final mortgage rate. Do you want a 30-year fixed rate mortgage or a 15-year fixed rate one? Do you need a 30-day rate lock or a 45-day rate lock? Is your credit score 740 or is your credit score below 640? Each of these options helps to set your final mortgage loan program, the cost of that program – and ultimately what mortgage interest rate you will be able to get. [Read more...]
The House of Representatives are considering a bill that will “renew” the Farm Bill. Unlike the Senate bill to fund the USDA – the House version does NOT tackle the question of USDA Home Loans and the new “definition” of Rural. That’s unfortunate. The Real Estate “Housing” recovery is not in high gear – and this program change could cause further HARM to home sales in NC.
The USDA RD Program is at a critical point – with mixed signals about it’s future. There are over 500 communities that grew between the 2000 and 2010 census that could be determined as ineligible for the program. That’s about 9.1 million people or approximately 8% of the population that currently lives in an eligibile area – these folks would no longer have access to the program.
One study notes that:
Approximately 90 percent of these potentially ineligible places are located in metropolitan areas, where towns must have populations below 10,000 to be eligible. Not surprisingly, while they are scattered around the country, clusters of these growing exurbs are particularly noticeable in metros in California, Florida, and Arizona. Rural housing producers have invested time and money in planning developments in some of these places, and we can safely assume that many of them need more affordable housing.
At the base of the issue we find that no one in Congress seems willing to tackle legislation that would raise the population thresholds for all rural housing eligibility determinations – this close to an election. Because of that, and the fact that population limits for USDA’s rural housing programs are not the same as they are for its business or utilities programs, it’s not surprising that the General Accounting office in Washington suggests that there needs to be a more “consistent” definition of Rural. Again, we question the TIMING of the change to the program, given the Economic “recovery” that the Fed says is so fragile. [Read more...]
NC is facing a HUGE Real Estate problem – and very few people seem to realize it! One of the programs MOST used by buyers to purchase homes in North Carolina is the USDA Home Loan program. It’s a 100% loan – no money down, and it has a very very low monthly PMI fee (when compared to FHA or Conventional financing).
Congress has asked for an update to what is considered “Rural.” With that request, carries the possibility for a massive change in the USDA Home Loan program, as towns that have grown “near” a MSA Designated area would no longer be eligible for USDA Loans. [Read more...]
We’ve recently run into a series of people purchasing homes in NC with Underground Oil Tanks. If you are applying for a USDA Home Loan (or any other Government Mortgage Program, frankly) this can be a problem.
The USDA Home Loan Handbook has this to say about Environment Requirements and Petroleum Tanks:
The Agency must consider the management of hazardous substances, including hazardous wastes and petroleum products, from two perspectives: liability under hazardous substance and hazardous waste laws, and the economic risks posed by the presence of hazardous substances. [Read more...]
USDA No Money Down Loans are one of the most requested programs of ANY loan program we do. We recently had two different families buying a home in North Carolina who had been told that they didn’t qualify for the program – who actually did. The problem for them was that the Loan Officer they originally talked to was not aware of the Adjustments you can make to Household Annual Income.
USDA Home Loans have No Downpayment
There are MANY No Money Down Home Loan Options available to buyers in North Carolina. This No Money Down Home Loan information is accurate as of today. If you get No Money Down Home Loan Information somewhere else, it may be inaccurate or out-of-date.
The No Money Down Home Loans are special mortgage products, reserved for prospective homeowners who qualify based upon some income, job and asset requirements. Home Buyers who would otherwise qualify for a conventional mortgages via Fannie Mae or Freddie can’t use some of these programs. No Money Down Home Loans are the cheapest, simplest way for NC Home Buyers to finance their new mortgages.
The No Money Down Home Loans have a common defining characteristic, in that you can not exceed the common “Median Income” for the area you are interested in. The programs do require home appraisals, and in some cases the property must “fit” within the No Money Down Home Loan Program footprint.
The No Money Down Home Loan Programs we offer are NOT limited to First Time Home Buyers, however, for some of the programs you can not currently own a home, and for other mortgages there are restrictions based upon how recently you owned a home.
Another big plus is for No Money Down Home Loan Programs is that they are fairly easy for which to qualify for! [Read more...]
Steve & Eleanor ThorneMLO NMLS #60596 Equal Housing Opportunity Lender
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