Benefits of USDA Home Loans in Johnston County and Wake County, NC

November 19, 2009 by Leave a Comment

USDA Home Loans are not just for buying farms! In fact, we don’t really offer that kind of Rural Development loan!

We DO offer USDA Home Loans… 100%, No Money Down mortgage loans that are insured by the USDA program!

These loans have less insurance than FHA loans, so they are cheaper all the way around… but there are some catches!

The property has to fall within the USDA Home Loan “footprint.”  All of Johnston County and Harnett County qualifies for this program… MUCH of the area around Apex, Holly Springs, Fuquay and Garner also qualifes!  Generally speaking, the area on the Harnett County side of 1010 does qualify, and the property towards Cary doesn’t.  We’ve posted several maps, and you can click on them here.

You also have to be under the Maximum Income for your family size – for those requirements, click here.

We close dozens of these loans each month in Wake and Johnston County (and Durham and Chatham and Harnett…) and we KNOW hwo they work!  Please call Steve and Eleanor Thorne to get pre-qualified for a USDA Home Loan!  919-649-5058

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USDA Rural Development Loans and Liquid Assets

September 8, 2009 by 1 Comment

Some People are Better Savers Than Others

Some People are Better Savers Than Others

Some borrower’s we talk to have ALWAYS been good savers, and they are drawn to the USDA Rural Development Home Loan program because it allows them to keep their savings (it’s a 100%, NO downpayment required loan!)!

 

There use to be a rule that said you could not have more than $5000 left in liquid assets after closing to qualify for a USDA Home Loan, thankfully that is no longer the case!

You can even make a downpayment with a USDA Home Loan (and we encourage people who qualify to use the USDA Home Loan program as opposed to FHA because it’s CHEAPER!)!

There’s just one little catch – you can not have more than 20% of the home’s purchase price left over after closing in liquid assets. This means that if you purchased a $100,000 house, you can not have more than $20,000 left over after closing.

If you have questions about purchasing a home in NC using the USDA Rural Development Home Loan, call us for pre-qualification!  Steve and Eleanor Thorne, 919-649-5058 – we are USDA Mortgage Loan Experts, and we have the lowest rates!!

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Maximum Income Requirements USDA in Wake County NC

January 25, 2009 by Leave a Comment

The Raleigh / Cary markets are considered an MSA (Major Suburban Area??) by the Government.  So, in Wake County that’s how you will find the maximum income limits specified for Wake County. These numbers changed at the beginning of the year, and the new income limits (which are based upon the number of people in your household) are as follows:

1 to 4 person family $86,100
5 person or higher, the limit is $93,000

If you like the idea of using a USDA Home Loan to purchase a home in Wake County, and you meet the income requirements… then you also need to consider the property location.  If you are considering a property in Apex, look at this map.  If you are looking in Holly Springs, look at this line along Ten Ten – and if you are thinking about Wake Forest, check out the map here.  If you have a specific address you want to check and see if it qualifies, you can always click here!

Remember, USDA Home Loans are 100% loans with no PMI! The Wall Street Journal says, “Created in 1991 as a way to boost homeownership in rural areas, the program is being tapped by home buyers in overbuilt exurbs who are attracted to the no-money-down terms.”  (Click Here to see their interview with our client!)

For questions about purchasing a home using USDA – please call Steve and Eleanor Thorne at Corporate Investors Mortgage Group, 919-649-5058. We’re EXCITED!  It’s truly a great time to purchase a home in the Triangle!

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FHA Downpayment Alternatives

November 8, 2008 by 6 Comments

Punctual Payment Plan

Unless the next Congress makes a major change, Downpayment Assistance Programs are a thing of the past.  We have been looking for Alternatives, and found this program that started in May of 2006 by the Rainy Day Foundation.

How does the Punctual Payment Program work?

The program is designed to help strengthen “Loan Borrowing Potential,” the website says they are providing a “Worry Free Loan.”

FHA loans now require a 3% down payment, at the beginning of 2009, it goes to 3.5%.  If the client does not have the funds for a down payment, FHA allows a gift from “Family or Friends.” 

With the recent economic downturn, Family and Friends might not be willing (or able frankly) to just “Gift” the downpayment for a home.

The Punctual Payment Program allows you to enroll in their re-imbursement program, for a fee of $499, and it will repay your ”Giftor” back in 4-6 months.

How the Program Works

  • The Borrower is rewarded for On Time Payments. 
  • The Seller can contribute up to 3%.
  • The seller’s contribution to be reimbursed will go into an Escrow account maintained by the Rainy Day Foundation.
  • Seller or borrower can pay for the $499 fee (just like Down Payment Assistance Programs of the past)
     

The Advantages of the program

  • 1 yr job loss coverage (benefit of $499 fee) – Event of loss job, coverage will be up to $1,800 per month for up to 6 months.
  • Pre-Purchase counseling
  • Post-Purchase Counseling
  • Missed Payment Protection – For as long as the borrower is enrolled the program will pay the loan servicer ANY MISSED payments.
  • The SELLER can contribute up to 3%!

One of the reasons Down Payment Assistance Programs “went away,” was because HUD said the borrowers were going into default at an alarming rate.  With this program, there have been ZERO payment defaults in the first 12 months of ownership - ever!

If you are interested in this program, please call us!

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