USDA Home Loans in NC are likely the most popular program available because they require no money for a down payment and they have the cheapest form of PMI - making the payments on a USDA Home Loan relatively cheap. The USDA Home Loan Deadlines 2013 are approaching – when changes to the program are scheduled to take place.
The eligibility maps that show where a home must be located to be eligible for the USDA Home Loan program are currently scheduled to change on . Many people are trying to figure out if they can purchase a home and get in, under the wire.
Great News! The The USDA Home Loan program recently clarified how it will handle the approaching deadline for loans trying to meet the “OLD” Map conditions.
USDA Home Loan NC Qualification Requirements
USDA Home Loan Eligibility in NC requires that the household income be below the threshold for the county you want to buy a home in, the home must be located within the USDA Home Loan Eligibility areas, and you must meet the basic underwriting qualifications for credit and debt load.
Here’s the Announcement from USDA SFH in Washington DC –>>>> SFH Origination Update – 2010 Census Data-Eligible Rural Area Change Reminder 08_26_2013 (Rev)
The minimum credit score allowed by the USDA Automated Underwriting System is 640. To qualify for a USDA loan with scores below that, you will need a manual underwrite (which we can do) and some strong offsetting factors – so for instance, having 3 months of payments in liquid cash left over closing.
The eligibility / maximum debt ratios for folks with credit scores under 660 have gotten tighter within the USDA Automated Underwriting System this summer. In particular – they don’t want you to purchase a home when your housing debt is significantly over the 29% mark – even if you don’t have much in the way of other monthly debt.
The maximum income limits vary per county in NC. For the Raleigh area, for instance, the maximum income for a family of 1 to 4 is $91,850. In Greensboro, the limit for a family of the same size is $74,750 and in the Charlotte area the maximum is $78,800 (which kind of surprises me – they will likely change later this fall).
USDA does allow us to factor in child care and other items to arrive at the maximum household income for your family - so be sure you are working with a loan officer who understands how USDA looks at USDA Income Calculations. You also want to be sure the loan officer is familiar with USDA Student Loan policies, because they are completely different from any other mortgage product.
USDA Home Loan Deadlines 2013
The USDA Home Loan Underwriters in NC actually review every USDA Home Loan application. So the loan is approved by the bank, through the Automated Underwriting System (GUS) and then it goes to USDA for them to review the file (tips for getting your USDA Loan Underwritten Faster). TODAY – USDA is underwriting files that were submitted on July 31st, so they are 21 business days or more for underwriting. In announcement received yesterday – they indicated that any loan that has REACHED the USDA OFFICE by the 30th of September will be considered for underwriting under the CURRENT Map System.
This is critical, because USDA Map Changes will affect over 25% (close to a third) of North Carolina. With this announcement, it appears that SOME folks WILL be able to write contracts in September and purchase a home that will not be eligible when maps change . The process will go like this:
- Call us and get pre-approved. This will take about 30 minutes. We work with Agents who are familiar with the USDA Home Loan Boundaries in NC
- Write a contract on a home that qualifies for the USDA Home Loan NC program, and
- send us your documents for loan application – have ALL OF THE DOCUMENTS ready for submission
- We will get an appraisal done as quickly as possible
- Get approved through the bank underwriting system (expect this to take 3 to 4 business days)
- Be in line at USDA for Underwriting prior to the end of September
The Commitment from USDA is good for 90 days. So if you get to USDA on Sept 30, and they don’t approve you until October 23rd, then your commitment says you must close on that transaction prior to January 23rd. This is important if your working with a new home builder who is pushing to complete your new home! Remember though – your bank statements and income docs may have expired during that period, and you may still have to submit additional information.
Buying a home this fall? For many first time home buyers, there’s no better program than USDA Home Loans NC. Mortgage rates are still really low – and we know how to help you get into your dream home! Call Steve Thorne or Eleanor Thorne at 919 649 5058 – leave us a question below, we try and answer all of them, or connect with us on Google + and Facebook!
**Personal opinion notes about the USDA Home Loan Map Changes in NC – Congress must balance the budget for EVERYTHING in our system. The September 30, 2013 date is NOT just an arbitrary date. Congress COULD still decide to delay these map changes… Call us at 919 649 5058 for the latest on the Farm Bill and what USDA is saying about map eligibility changes.