USDA Rural Development Switching Underwriters

July 12, 2010 by 2 Comments

USDA Rural Development Single Family Housing announced some consolidation and changes regarding WHERE files are going to be processed.

No matter who originates a USDA home loan, it is re-underwritten (or processed) through a local USDA office. In the past, loans for Wake County went to Wake, Johnston County went to Sanford and Franklin County went to Franklin County.

So, there will be an underwriter, or processor out there who in the next couple of weeks, won’t realize there’s been a change… will be going too fast without updating their rolodex, and they will ship a file off to the wrong place.  I can guarantee it.

If you are considering a USDA home loan for your purchase in NC, look at the following list of where files are being processed for your county.  Ask your loan officer… then call Steve Thone,Mortgage Banker in Cary , 919-649-5058.  We love USDA home loans!

In today’s announcement, USDA will be underwriting for Guaranteed Processing as follows:

Asheville Office -
Buncombe,Henderson,Madison,McDowell, Mitchell, Transylvania, Yancey County
Murphy Office
Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain
Shelby Sub Office
Cleveland, Gaston, Lincoln, Polk, Rutherford
Winston-Salem Office
Catawba, Forsyth, Iredell, Stokes,Surry, Yadkin
Jefferson Area Office
Alexander, Alleghany, Ashe, Avery,Burke, Caldwell, Watauga, Wilkes
Henderson Area Office
Alamance, Caswell, Durham, Granville, Orange, Person, Vance
Lumberton Area Office
Bladen, Brunswick, Columbus, Cumberland, Hoke, New Hanover, Pender, Robeson, Scotland
Greenville Area Office
Beaufort, Bertie, Camden, Chowan, Currituck, Dare, Gates, Hertford, Hyde, Martin, Northampton, Pasquotank, Perquimans, Pitt, Tyrrell, Washington
Asheboro Area Office
Cabarrus, Davidson, Davie, Guilford, Mecklenburg, Montgomery, Randolph, Rockingham, Rowan, Stanley, Union
Sanford Office
Chatham, Edgecombe, Harnett, Johnston, Lee, Nash, Wake, Wilson
Kinston Area Office
Carteret, Craven, Duplin, Greene, Jones, Lenoir, Onslow, Pamlico, Sampson, Wayne
Halifax Office
Franklin, Halifax, Warren
Rockingham Office
Anson, Moore, Richmond

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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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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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What Exactly Are Closing Cost?

October 25, 2009 by Leave a Comment

If you are considering the purchase of a home, you know that there could be

Trying to Have Money Left Over After Closing?

Trying to Have Money Left Over After Closing?

a downpayment requirement (unless you are a Veteran, or you are purchasing in a rural area that qualifies for USDA Home Loan Mortgages)… and you might be aware that there will be “Closing Costs.”  Your REALTOR might have mentioned that you are going to ask the Seller to pay some or all of those costs… but WHAT ARE THEY?

The Federal Reserve Board refers to them as “Settlement Fees.” They are, in fact the fees you pay to the various agencies and service providers who work to get the title of the home transferred into your name.

So, obviously there’s a credit report, and you pay for that.  There’s an appraisal on the property, and a fee of @$375 for that (today).  For a comprehensive list of the types of fees, click here.

IN GENERAL (this is just MY rule of thumb)… You will need to budget 3% of your home’s value in closing costs.  You might have less – but you will generally have 6 months of taxes in escrow, and you have to pay your homeowner’s insurance a year in advance.

You might not need that much, but if you are a first time homebuyer counting pennies – I would rather come up with a few extra dollars at the end!

If you want to get Pre-Qualified for a mortgage in NC, call Steve and Eleanor Thorne, Professional Mortgage Planners!  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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Durham County USDA Financing Tips!

January 26, 2009 by Leave a Comment

Part of Durham County, NC qualifies for USDA mortgages – and the qualifying guidelines have recently changed!

To see maps specific to where you can find a home that qualifies for this 100% financing in Durham, click here

The maximum income is calculated per family members living at home.  The current guidelines are:

  • 1 person in household maximum income is $57,400

  • 2 people in household maximum income is $65,600

  • 3 people in the household maximum income is $73,800

  • 4 people in the household maximum income is $82,000

  • 5 people in the household maximum income is $88,550

In addition to this – the property need to be located in a qualified (less densly populated area).  If you want to see if your property is qualified for a USDA 100% home loan – click here! If you have quesitons about purchasing a home using a USDA Mortgage – please call Steve and Eleanor Thorne at Corporate Investors Mortgage Group, 919-649-5058

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100% Mortgage Loans in Chapel Hill?

January 26, 2009 by Leave a Comment

I was very surprised by just how much of Orange County, NC qualifies for USDA Mortage Loans!  Pleasantly Surprised!

Granted, downtown Carrboro and Chapel Hill do not qualify – but MOST of the county does! To find out if your specific property qualifies, click here!

USDA Home Loans in OC, North Carolina

The parts in the “shaded” areas do not qualify for USDA loans, however, all of the rest does!  The maximum income amounts for Orange County are lower than Wake County!

  • 1- 4 people in household maximum income is $82,000

  • 5 or more people in the household maximum income is $88,550

If you have questions about qualifying for a USDA Home Loan in Orange County, NC - please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058!

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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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USDA No Money Down Mortgage

December 16, 2008 by 4 Comments

Not For FarmsWe’ve helped many customers buy homes with an old program offered through the USDA… not farms… HOMES.

The Rurual Economic Development Fund is what it use to be called, now it’s just a part of the USDA, and the goal is to provide mortgages, and incentives for folks to purchase homes in less “densly” populated areas!

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest (click the links for maps).  All of Fuquay and Garner qualify for a NO MONEY DOWN, USDA mortgage… parts of Durham qualify (look at the areas around Briar Creek!) and all of Johnston County qualifies.

Again, it’s a NO MONEY DOWN loan, with NO PMI!  One of our customers was just quoted in the WSJ about this program!  He said, “I couldn’t believe it until I got to closing!”  He only paid $1200 out of pocket to get into a very nice $228,000 home!

If you want more information about qualifying for a USDA home loan, please click here!  Remember!  If you are a first time homebuyer, or you have not owned a home in the last three years, you might qualify for a $7500 Tax Credit!

PS!  The program is running out of money.  Please click here for details!

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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! 

Filed Under: First Time Home Buyer, USDA Home Loans Tagged With: , , , ,
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