USDA Home Loans are 100%, no money down loans available for “less urban / more rural areas.” North Carolina has more areas available for this financing than most states. Pitt County, and the area around ECU, and Greenville has a TON of the county that qualifies for this great program. Those looking for USDA Home Loans Near Greenville need to understand that the USDA Eligibility Maps change later this fall, and many neighborhoods will no longer be eligible.
The USDA loans do not require any money for a down-payment, making the USDA mortgage perfect for folks who are just getting out of college, or who want to buy a house in Greenville NC with very little out-of-pocket expense. The Seller is allowed to cover most of the cost associated with closing for a home, the buyers generally need enough money to cover the home inspection, homeowners insurance and taxes.
Monthly payments for the USDA Loans in Pitt County are some of the cheapest available. This is due to two factors… one, when compared to other mortgage programs like FHA, the USDA PMI rates are considerably lower (like $200 a month lower). In addition to this, the Fed is buying these mortgages, and so as mortgage interest rates are going up this summer – USDA loans still carry the lowest rates available for an owner occupied, 30 year fixed payment.
The program is not designed for Horse Farms, or working farms in general. Outbuildings on a property could actually bring the appraised value of the property down. In Ground Swimming pools will be easier to finance with a USDA Loan.
There are 3 basic requirements for qualifying for USDA Home Loans Near Greenville NC | Pitt County.
First, the property must be located in the USDA “footprint.” It is very important to remember that USDA Map Changes scheduled for will significantly reduce the areas that qualify for USDA Loans near Greenville NC (see the maps below). There are maximum household income requirements that vary per county in NC. For the Greenville NC area a household with 1 to 4 members can not have gross income that exceeds $78,200. For Households with 5 members of more, the current income limit is $103,200. USDA does allow us to make adjustments to gross income based upon deductions on your tax return, retirement or social security or disability status, and child care expenses. So if you are over by just a little on these household limits, don’t give up! Call us to see if we can make the numbers work! 919 649 5058
The USDA home loan minimum credit scores required for the best rates on this program are 640. Have we done loans for folks with 600 and lower – yes, but honestly those deals are difficult to get approved.
Nontaxable Income: May be grossed up 25% for repayment income, this 25% is an across the board amount regardless of what tax bracket the borrower is part of.
Gifts: No longer a restriction on gifts from household members.
Reserves: The term “reserves” refers to the amount of money left over after closing. For a long time now, we’ve seen that the automated approvals in GUS reserves must be the recent 2 month average balance of liquid accounts. Gift funds are not included in the reserve total; if the borrower has overdraft or NSF’s on bank accounts, no reserves are allowed to be listed. (THIS IS A BIG CHANGE IN GUIDELINES)
Credit Score Validation: At least one applicant whose income & assets are used for loan qualification must have 2 trade lines that have existed for 12 months (these can be open or closed accounts). If the borrower(s) do not have this the loan must be downgraded to a refer & manually underwritten.
Distance between well & septic: Must meet either local/state code or HUD Handbook 4000.1
Flood Insurance: Coverage must equal the lesser of the outstanding principal loan balance or the maximum coverage allowed under NFIP. Also unless a higher amount is required by state law the maximum deductible should not exceed the greater of $1000 or 1% of the face amount of the policy.
The eligibility maps for USDA are scheduled to change every December. Because of this, after we show you the close up maps below, you will see the last map marked Future Changes. (so in the lighter shaded area) The top maps are close-ups of the Current areas that qualify for USDA Home Loan financing in Pitt County NC. The Bottom maps show what we expect to see the Maps change to as of December. This change will likely cause some delays for USDA Loans in Greenville NC – so apply EARLY!
Note that many ADDITIONAL areas on the map below are shaded in, these areas will not qualify for USDA Home loans in Greenville NC starting on December 1.
If you are looking for a no money down payment loan or USDA Home Loans Near Greenville NC Pitt County (or anywhere else in NC for that matter), Call Steve and Eleanor Thorne, Mortgage Bankers in NC 919-649-5058 We are USDA Home Loan experts! We have great rates, we can help you with your credit challenges, and we know what WILL work for USDA… and what won’t. So don’t waste your time! Call Steve at 919-649-5058