USDA Loans in Belmont, NC

May 7, 2013 by Leave a Comment

Belmont NC USDA LoansUSDA Home Loans in Belmont, NC 28012 do not have a maximum loan amount – however, the property must be located within the USDA “Eligibility” area.  Here are maps of the Gaston County area, remember that the “faint pink” parts on the map do NOT qualify for USDA Loans.  All of the OTHER areas, however, DO qualify for the USDA RD Loan program.

USDA Loan Highlights:

[Read more...]

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“TOWNS” in NC Due to Lose USDA RD Program

March 4, 2013 by Leave a Comment

USDA Home Loans in NCCurrently, every County in NC is eligible for USDA Home Loan Financing.  The USDA RD Program (which covers home loans in Rural parts of NC) is subject to change on September 30th, 2013.  When it does, the program is slated to “leave” many major towns and cities in NC.  According to a memo from USDA in September of 2012, the actual town BOUNDARY lines may be the important guide.  Meaning that with the new requirements for a home loan, USDA will use NC Town Limits to determine USDA Home Loan Boundary Lines

Currently, a town might have a single street that sets the “eligible Boundary line,” the USDA Home Loan Map Changes taking effect, could make the Town or City Line the eligible marker.  

In Holly Springs, NC (for instance) one side of  SR 1010 is eligible – properties on the Other side of SR 1010 are not.  This is a definite policy switch, in announcing that the entire TOWN LIMITS would not be eligible for USDA Home Loans with the newest Map Changes.  Again with the new requirements for a USDA Home Loan, USDA will use NC Town Limits to determine USDA Home Loan Boundary Lines

The NC Town and City limit / boundary lines we currently believe will no longer be eligible for USDA Home Loans on September 30, 2013 include: [Read more...]

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God Made a Farmer: USDA Home Loans

February 4, 2013 by 1 Comment

God Made A Farmer USDA Home LoansAs we watched the Farmer Commercial Last Night as part of the Super Bowl … we thought about all of our clients who might not want to be “the one sitting up with a new colt,” but they definitely want to live in a community with the folks who do.  

They want to live in the Country – and interact with the strong people who are America’s Farmers.  They want to live in Rural North Carolina.  And the USDA Home Loan Program allows them to do that.

It’s a great program – just like this commercial by Dodge Ram about “God Made A Farmer.”  It’s specifically designed for that MASSIVE part of North Carolina where you can still hear the Rooster in the morning.  It’s a 100% – no money down loan, and it’s helped HUNDREDS of NC Families buy a home. [Read more...]

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What Is A USDA Home Loan?

January 7, 2013 by 2 Comments

USDA Loans are not really designed for FARMS27,100 people search for the answer of that question in NC every month… First Time Home Buyers have talked to a friend, or a family member who told them they should consider a USDA Home Loan – but WHY?  What is a USDA Home Loan?

USDA Home Loans are no money down home loans with specific underwriting requirements that include:

  • Property Restrictions:  
    • The property must be located within the “USDA Footprint.”  USDA literally has “maps” that show where they will finance a house, and where they won’t.  1/3 of North Carolina could become ineligible at the end of September 2013 – at least 22 Communities are on the list of places that will no longer be eligible for USDA Home Loans – including many areas near Raleigh, NC. 
    • Home Value Ratio compared to Land Values require that the land value must be no more than a third of the total value of the property.  So if the purchase price of the home is $100,000 then the value assigned to the land must be no more than $30,000.
    • The Value of any “out buildings” that could be used as part of a “working farm” (like a Barn) may be deducted from the amount you can borrow.
    • Properties that have a Swimming Pool that is “in ground” are generally not going to work for USDA Home Loans. (see this about  USDA Home Loans and Swimming Pools)
    • Homes that have in ground oil barrels, or oil barrels that have been removed from the property will likely require additional inspections.
    • Home Inspections that show on a HUD 1 will likely mean that the Underwriters want to review them… this means that if the Home Inspector notes ANYTHING – it will need to be fixed.  (See This) [Read more...]
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USDA Loan Frequently Asked Questions

July 19, 2012 by 3 Comments

USDA LoanMost loan officers are not familiar with the USDA Loan Program – which is a shame, because it’s one of the best No Money Down Home Loans available in NC!

We get “Rural” really fast in NC… one minute you’re in a neighborhood – the next you can wake up to the sound of Roosters!

If you’re interested in living in a home with a larger lot – and a little less “Urban” this might be the program for you!

The program’s full name is the USDA Rural Development Guaranteed Housing Loan program. Most people call them “USDA loans” or “USDA RD Loans”.  USDA loans are insured by the U.S. Department of Agriculture.

The USDA’s loan’s biggest feature is  that it is a No Money Down Home Loan!  That’s right, if you qualify – this is a 100% mortgage loan.

USDA loans are the same as most other mortgages in that they don’t have “crazy payback schedules” or come with prepayment penalties. Because these loans are backed by the government of The United States, there are some “quirks” to it. [Read more...]

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USDA Home Loan Closing Closts

July 17, 2012 by 2 Comments
ranch in clayton

Get more Info on this home in Clayton, NC
Call (919) 601-2268

USDA Home Loans have different closing costs than those charged by their “cousins” the FHA mortgage loan.  Why?  Because the USDA Home Loan program in NC has lower PMI fees than an FHA loan!

We’ve seen borrowers close with one of the No Money Down Home Loans with less than $250 out of pocket!

USDA Home Loans have traditionally been pretty quick to close, because there’s been less red tape.  NC made a change to the way it is “shuffling” files to the underwriters – making them a little slower process… so I would count on 45 days.   [Read more...]

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USDA Student Loan Updates

July 10, 2012 by Leave a Comment

Deferred Student Loans USDAUSDA has long seen the benefit of a College Degree – and in fact USDA Home Loan Underwriters will use Higher Education as a “compensating factor” when a family is close on the debt ratios!  Unlike FHA and VA home loan underwriting, though, the no money down home loan programs offered through USDA COUNT deferred Student loans IN the total debt ratio.

Student loans come in two classes: deferred and not deferred.  And one thing to keep in mind when looking at the USDA Loan Program is that it does treat student loans differently than the other loan programs available. At first glance you would intuitively think that a deferred student loan would not be considered in qualifying for your new home loan.

Recently, USDA Home Loan Underwriters announced a slight change, because of a new type of Deferred Student Loans.  One type of  deferred Student Loan is the “traditional” set payment each month… the NEW type of Student loan is based upon Income, and is scheduled to change on an annual basis.

This new change is CRITICAL – and important to understand if you have an Income Based Repayment plan on your Student Loans and you want to qualify for a USDA Home Loan! [Read more...]

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Documentation Needed For a Mortgage Loan

March 27, 2012 by Leave a Comment

Call Us!Here’s a list of the various types of information we are required to receive for most (if not all) loan applicants:

  • Social Security numbers
  • Residence addresses for the past two years:If renting, we will need contact information for your landlords
  • Names and addresses of your employers over past two years: If you were a student, we will need either a copy of your Diploma or your transcript
  • If you are Accepting a Position that will start in the future:  Please provide your letter of offer
  • Your current gross monthly salary: We’ll need pay stubs for a month, and W-2s for the last 2 years
  • Alimony or Child Support:  We will need evidence that you are receiving this income
  • Divorced or Separated:  We need a copy of the recorded divorce or separation agreement [Read more...]
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FHA Guidelines to Qualify “Rent to Own” in NC

May 5, 2011 by 1 Comment

Rent-to-own agreements and or sales that take place between a tenant and landlord have special FHA Guidelines. Often times, when someone moves to our area with a short sale, or previous forced foreclosure in their past – they will rent a home here until their “waiting period” is over.

If you are in this situation, and plan on buying a home under a rent to own scenario, there are different rules for different types of loans. All Government loans are popular, because of their low downpayment requirements.  VA has no “formal” guidelines for this scenario, and neither does USDA- however, most Underwriters follow the FHA Guidelines for all Government loans in a lease to own scenario.

The appraiser will determine the fair market rent for the property.  Any money paid ABOVE the fair market rent will be used as a credit towards a future downpayment. So, if the appraiser says the fair value rent for the home is $1000, and you pay $1500 a month – $500 for each month you paid that could be paid by the Seller as Downpayment for you at closing! [Read more...]

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USDA Home Loan Credit Qualifications in NC

April 15, 2011 by 1 Comment

Good News!  You do NOT need perfect credit to qualify for a USDA Home Loan!  Whew!  This 100% no money down program requires a MINIMUM credit score of 600 – but folks, just because you have a 600 score, doesn’t mean you can purchase. These days – we normally need a score above 640 to get the loan approved by Underwriters… unless you qualify for NC Housing Finance Agency funds.  They will allow you to have 2 scores above the 600 mark to qualify.

If you are NEW to the Credit game, meaning you are recently out of school and don’t have any BAD credit, you just don’t have a TON of credit – we can probably get a NC Housing 600 score approved. In general, you need 3 different trade lines with 12 months of payment history.  Equifax will verify your rental payments (assuming the lease was in your name) and calculate that as a trade line, the other 2 credit repositories will not.

Here are some guidelines on what USDA Home Loan Underwriters will NOT take:

  • Foreclosure within the last 36 months.
  • Bankruptcy within the last 36 months
  • More than one 30 day late in the past 12 months
  • Outstanding Judgments in the past 12 months
  • Two or More missed rent payments within the last 24 months
  • Chapter 13 Bankruptcy – Case by Case review
  • Delinquent tax liens
  • Delinquent student loans

If you are in the market for a new home, and you want to know if your credit will qualify you for a the no money down home loans with USDA Rural Development Mortgage Loan, call Steve and Eleanor Thorne – 919-694-5058 we are NC’s USDA Home Loan Experts!  We recently did a comparison of all no money down home loans available in NC, and we still think that for folks who are willing to live in less urban areas, USDA Home Loans are the best option!

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