USDA Home Loan Changes In NC Coming

May 7, 2012 by 7 Comments

This state has grown Soooo much, that when the 2010 Census maps were drawn up, and analyzed, it showed that 21 Communities in NC was scheduled to lose the opportunity to get mortgage loans approved using the USDA Home Loan Program starting September 30, 2013. 

Congress passed the Senate USDA Appropriations bill, S.2375 which included a grandfathering provision.  The provision is for places that have gained population and would otherwise become ineligible for USDA Home Loans.  This bill would keep them eligible through the end of June 1, 2013 – and while the Senate passed their “part” of the legislation, the House has NOT.

Because there’s been no “complete” decision by Congress, USDA Rural Development Single Family Housing  Announced that it will put the new maps in place on September 30, 2013.  Many areas in NC will loose eligibility for USDA Home Loan financing, when the updated Census Data is put into place.  The current proposed List includes: [Read more...]

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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,    919-649-5058 Connect With Us on Facebook,


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

November 19, 2009 by Leave a Comment

USDA no money down home loan LOGOUSDA 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 Home Loans that are insured by the USDA program! (Although if you want to use the USDA Home Loan to buy a horse farm in NC… you can!)

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, every county in NC has an area that currently qualifies for the program.  This could be changing in Oct of 2013, as new USDA Guidelines go into effect and 22 areas in NC potentially lose the USDA Home Loan program!

You also have to be under the Maximum Income for your family size, and USDA No Money Down Home Loan underwriters look at weather your children are in day care (for instance) to make adjustments to those USDA Maximum Income limits

We close dozens of these loans No Money Down Home 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  We recently compared all of the No Money Down Home Loans in NC, and we still think that for folks who want to live in Johnston County – this is a great program!

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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,  919-649-5058.  Connect With Us on Google Plus

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, Connect With Us on Facebook, 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 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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