USDA Gets Cash From House -Come on Senate!

April 30, 2010 by 3 Comments

GOOD NEWS!  The US House Finance Committee approved a measure to fund the U.S. Department of Agriculture (USDA) Rural Housing Service Loan Guarantee Program (section 502 Loans).

Say What? Have you been reading that USDA is out of money?  Well, it’s not COMPLETELY out -but it’s close. In our part of North Carolina it’s taking about 12 days to get your loan underwritten by USDA…. they sent out a message this week that they thought they would be out of cash by May 7th.  This means that if your loan is not ALREADY submitted to USDA, then you would be SOL (So out of Luck).

So the fact that this program will likely get more money is GREAT NEWS!  What will be even better, is if Congress can pass this bill by the end of next week – assuming it looks like it will pass, then USDA could continue issuing “Conditional Commitments.”

If, If, IF they continue issuing “Conditional Commitments” after next week – we will be able to continuing funding – even if Congress takes another 2 or 3 weeks to get it all passed.

The HIC-UP comes when there’s uncertainty about weather Congress would change the program. The version passed by the House Finance Committee does NOT change the current program. To view the Bill, click here - H.R. 5017, “Rural Housing Preservation and Stabilization Act of 2010,” – Rep. Paul Kanjorksi (D-PA)

We will keep monitoring this.  If you have questions about USDA Home Loan financing, and you are purchasing in NC – please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, Inc.  919-649-5058


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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 Appraisal Requirement Change July 1, 2009

June 26, 2009 by Leave a Comment

Beginning July 1, 2009 USDA is requiring the updated Freddie Mac/ Fannie Mae appraisal in their packages.  As with any change, there are some potential drawbacks.

USDA home loans are made in genearlly rural areas.  The new Freddie/Fannie appraisal is designed specifically to identify for the underwriter any recent changes (read DECLINING changes) identified in a particular subdivision or small locality… well, in a mostly rural area, you don’t always have consistantly priced homes, so if you are asking about a small local geographic area, it’s very possible that the property values will look as if they are declining.  That’s why it is important, now more than ever, to work with a HIGHLY skilled Appriaser who can competently and carefully give the FULL details regarding the area in the additional comments sections provided.

Here’s the news:
New Appraisal Requirements for Single Family Housing Guaranteed Loans
 
For new application packages submitted to the Agency on or after July 1, 2009, Rural Development will require the Fannie Mae/Freddie Mac form 1004MC “Market Conditions Addendum to the Appraisal Report” be included in the appraisal.  Beginning July 1, 2009, Lenders should order appraisals to include the Fannie Mae/Freddie Mac form 1004MC.  For loans already in process, the Agency will continue to accept appraisals without the Fannie Mae/Freddie Mac form 1004MC until July 31, 2009.  The form is not required if an application package has already been submitted to the Agency, or if an appraisal has already been conducted that did not include the form.  This applies to all guaranteed loan requests, including those manually underwritten or submitted through GUS.  An Administrative Notice on this topic is forthcoming.

If you are considering purchasing a home, and using the USDA home loan mortgage program, please contact us!  We specialize in these (and other) government loan programs!  Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058.  There are MANY areas in Wake County that qualify for USDA financing, and ALL of Johnston County Qualifies for USDA mortgage loans!  Click here to see maps of specific areas qualifying for USDA mortgages!

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Government Loan Update to Guidelines

January 29, 2009 by 1 Comment

Government Underwriting Guidelines are Changing!And in the blink of an eye – while I was checking my Blackberry – there it was. More guideline changes!  Holy Cow Batman!

Many of that Nation’s Banks changed guidelines to show that FHA, VA and USDA minimum credit scores (some people call them FICO scores) are going to 620. What does this mean – since FHA has an underwriting “guideline” that allows for scores even below the traditional 580, and VA doesn’t have a minimum credit score?  Well, just because FHA and VA might accept and insure borrowers with lower scores – Wells Fargo, Suntrust, Countrywide, Security National Mortgage Corporation and OTHERS are not.

We do have companies that we work with that will make Government Loans to folks with scores under 620… that’s the good news.  Here’s the BAD news.  The rates are higher – and because we have a rate spread LAW in North Carolina – not all of those loans will be available!

Additionally – the PMI companies listed Wake County as a “Distressed” area effective February 2, 2009.  This means that the minimum credit score needed for a loan that requires PMI here is now 700.  That’s STIFF!

If you are considering a purchase later this year – go ahead and talk to your lender.  Let us begin the work of getting your scores “tight…” especially if you think you have a low credit score!  We need to  start this process EARLY!  Especially in view of the fact that Government Underwriting Guidelines are changing so quickly!  Call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058.

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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 there are still some programs out there.  FHA and USDA loans are excellent choices – and they are 100% loan programs!

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:

It is their Guaranteed Rural Housing program.

1.  Must have a minimum 620 mid FICO

2.  Must be within income guidelines for the county in which the subject property is located (These tend to be significantly higher that 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.  If there is a Bankruptcy, it can be discharged as recently as yesterday.

If these 5 guidelines are met then the loan is guaranteed approval.  Any collections that may appear on the credit report do not have to be paid off.  The bank does have to go through regular underwriting to verify funds, value, etc. but what I like the most is it is GUARANTEED to be approved if the above 5 guidelines are met.

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 EXPERTS,  Steve and Eleanor Thorne 649-5058 Corporate Investors Mortgage Group.

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