What Does It Mean When USDA Runs Out Of Money?

March 12, 2010 by 1 Comment

Every year Congress puts funds into the USDA Rural Development “Account” for them to lend out to home buyers. It’s a great program that requires no money down (for program details click here)…

On March 11, 2010 Rural Housing folks announced that they will probably run out of money before the end of April.  What does that mean?

Unlike FHA, VA and Conventional loans – USDA Home Loans must be underwritten by a USDA underwriter.  The Underwriter issues a Conditional Commitment.  If the “account” that USDA has within the Federal Government to fund loans from runs dry… they can issue TWO different kinds of Commitments

According to Chase, the world’s LARGEST insurer of USDA Home Loans, “if the USDA issues “subject to funding commitments” we can still fund USDA loans, even if they are out of money. The USDA’s 3-11-2010 notification said that they will not issue the commitments subject to the availability of funds therefore we can’t fund the loans.”

This is significant because the Tax Credit for Home Purchases ends in April… and MUST fund by the end of June.  If you are looking ofr a home, and are considering using USDA Home Loan Financing – we suggest you call us IMMEDIATELY!  If you are SELLING a home – please make certain the funds are available for your transaction!  Call Steve Thorne, Corporate Investors Mortgage Group, 919-649-5058

HERE’s AN UPDATE AS OF April 6, 2010

 

 

 

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100% Mortgages in Wake County??

October 3, 2008 by 2 Comments

Fed BailoutWe’ve had TONS of calls this week from folks wanting to know if we still have money to lend for homes in the Triangle!  YES!  We even have 100% loans available.

Unless you are a veteran – in which case you qualify for a VA loan – most folks looking for 100% financing are choosing USDA.

We’ve written about most of the qualifying “quirks” of the program here  and here – but wanted to add a couple of notes.

First off, you do NOT have to be a first time homebuyer to qualify for a USDA home.  The “rigid” rule is that you can not currently own a home.  However, if you own a home in Ohio (for instance) that will not sell – and you rent it and move to NC, you can get a 100% USDA home loan! 

The other sticking point is that you can not have mroe than 20% liquid assets.  SO if you are purchasing a $100,000 home you can not have more than $20,000 in liquid assets.  These liquid assets do NOT include money in retirement or 401K accounts.

It’s a great program, and the rates are still REALLY low! 

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North Carolina USDA Mortgage Loans

September 9, 2008 by 8 Comments

In NC, we have some big cities… but we get rural fast!  I can’t tell you how many people, dispite the cost of gas, who say, “I’m just lookin’ for some land!” or “I can’t stand those little ‘Barbie Doll’ houses sitting right next to each other!”

Well, if you’re looking to buy a rural home, we can help you learn about the benefits and features of purchasing a home by using the USDA Guaranteed Rual Home Loan.

But if you’re looking to finance a horse farm, you might want to read this first!

The USDA Guaranteed Rural Home Loan program was created to help low to moderate income families buy homes in designated rural areas with 100% financing.  It really provides people with the most cost efficient way to finance a home.

There’s a 2% fee (it’s their form of mortgage insurance) and it’s added to the loan amount.  So if you are borrowing $100,000 you will have your principal and interest payment calculated at $102,000.  There are income limits, and in Wake County a family of four can not make more than $86,100.

The loans are designed for RURAL AREAS… but all of Johnston County, Chatham County and much of the Western Wake County area are open to the Program.8000 Tax Credit UPDATE!

To See Homes That Qualify For this 100% Financing click here!

If you have questions about purchasing a home with USDA in NC, please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group at 919-649-5058

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USDA Western Wake County

September 8, 2008 by 7 Comments

I We found this VERY cool map that shows exactly where you can purchase a home in Western Wake County using the 100% USDA program!  As you can see, if you are on the “left side” of Ten Ten, in Holly Springs, or Fuquay – or parts of Apex, you qualify for this 100% program! 

The “mortgage insurance” for USDA is considered a “funding fee” and is 2%.  So if you purchased this home that’s currently for sale at $136900 – you would have your P&I calculated on $139,638.  TODAY (and depending on when you’re reading all of this the house and the rates might be different) the P&I (principal and interest payment) for a 100%, no money down loan on this house, with no origination fee would be…

$860.00

Can you beleive that??  All the bad news on the airwaves, and you can buy this GREAT home at that price per month!  WOW!

If you need more information about qualifying for a USDA home loan, or buying a home in Western Wake County, please call Steve and Eleanor Thorne, Meridian Residential, 919-649-5058

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