Apr 16

29

What is the maximum USDA loan amount?

Is there a maximum USDA loan amount?

In case you did not know, it is true that USDA loans actually have NO loan limits! Since there is not a maximum set sales price for a USDA loan, this can be a powerful option that sometimes gets overlooked.

In today’s video tip, I will explain how guidelines can be flexible when trying to increase your maximum USDA loan amount and overall qualifying ability.

Before we get started, don’t forget to take advantage of our free 2nd opinion service. This is a great way to get an expert opinion and is an excellent tool for helping to make the most of your USDA pre-qualification.

Many look at the USDA program as being available only for smaller loan sizes, but that just is not true.  The USDA program can assist a wide range of potential buyers, with one major benefit being that there is NO maximum USDA loan amount.

maximum USDA loan amount

Because USDA loans do not have loan limits, they can be a great option when compared to either conventional or FHA loans, which both require a minimum required down payment.

While there is no maximum USDA loan amount, they do have healthy income limits which is based on family household size and even those can be increased if the property is located in a USDA high cost county.

Also, remember that because there is NO maximum USDA loan amount, this can open up available property types to also include subdivisions, gated communities, and townhomes, provided they are in a USDA eligible area.  maximum USDA loan amount

In summary, the USDA loans program offers high flexibility due to the following:

• 100% financing
• Ability to finance closing costs
• More flexible credit guidelines than conventional loans
• And as discussed today – NO maximum USDA loan amount!

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs

Apr 16

22

Can you qualify for a USDA loan after a foreclosure?

Can you qualify for a USDA loan after a foreclosure?

When it comes to previous foreclosures, don’t be scared – be aware! While many think that a previous foreclosure may end their dream of regaining homeownership, today’s video tip will go into details about how you can qualify for a USDA loan after a foreclosure.

Before we get started, don’t forget to download our USDA blueprint for success with the link below. This free guide is designed to break down the process step by step and is a great educational resource for the real estate community.

In 2013, Corelogic reported that the number of foreclosures since 2008 was estimated at 4.4 million. How do you qualify for a USDA loan after a foreclosure

With that being said, many potential homebuyers are back on the rebound and trying to qualify to purchase a home.

Thankfully, the USDA program can be flexible in these situations.

The waiting period to qualify for a USDA loan after a foreclosure is generally three years from the recorded date of the foreclosure. Depending on the factors involved, it may be possible to qualify with an exception for a time period less than that.

How do you qualify for a USDA loan after a foreclosure

Can you qualify for a USDA Loan after a foreclosure?

USDA qualifying guidelines state the following regarding previous mortgage foreclosure:

“An applicant is generally not eligible for a new guarantee, if during the prior three years the applicant’s previous real property was foreclosed on or they have given a deed-in-lieu of foreclosure.”

In cases when a foreclosure has been less than 3 years, exceptions are possible but should be made only in the following situations:

  • Was the situation which cased the credit problems temporary in nature?
  • Was the situation beyond the applicant’s control?
  • Have the circumstances been removed and resolved for the 12 months prior to application

Examples could include, but are not limited to the following:

  • Temporary loss of employment
  • Delay or Reduction in Benefits
  • Illness
  • Dispute over payment for defective goods or services

Documentation will need to be provided by the potential applicant in order to support their request for a possible exception.

How do you qualify for a USDA loan after a foreclosure

It is also important to note that the following limitations will apply when seeking a possible exception to the 3 year waiting period when trying to qualify for a USDA loan after a foreclosure:

  • The inability to sell the property due to a job transfer or relocation to another area does not qualify as an extenuating circumstance.
  • Divorce is not considered an extenuating circumstance. However, an applicant whose loan was current at the time of a divorce in which the ex-spouse received the property and the loan was later foreclosed may qualify as an exception.

Remember, not all lenders have experience with processing and closing USDA loans.  As an approved USDA loan program lender, we are known for our program expertise and have specific systems in place to process USDA loans from pre-qualification to closing.


Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs, USDA Loan After Bankruptcy

Apr 16

15

What can be done if your USDA loan is denied?

What can be done if your USDA loan is denied?

What happens if a buyer’s USDA loan is denied after they have signed a contract? Before your blood pressure gets too high, take a deep breath and remember that there are different ways a USDA loan can be approved.

In today’s short video we will discuss the USDA approval process and how to keep your transaction heading in the right direction!

Also, if you have not yet done, please download our free USDA Blueprint for success with the link below. This is a great resource for the USDA qualifying process and an education tool designed for both buyers and Realtors.

So, what can be done if your USDA loan is denied??

Before you panic, remember that USDA loans can be approved two different ways: 

  • Automated Underwriting acceptance through the USDA underwriting system known as GUS  (Guaranteed Underwriting System)
  • Manual Underwriting

USDA loan denied

As a starting point, you could compare an automated acceptance as going done a paved road with clear view and good conditions.

While manual underwriting could be illustrated as traveling on a road in bad condition with poor visibility. They both can get you to the destination, but one may require additional care and steps taken to navigate.

  • Automated acceptance requires a minimum credit score of at least 640, while manual underwriting guidelines can be more flexible
  • Depending on your bank or lender, they may only work with automated approvals. 
  • If you have been denied for a USDA loan, ask if they are able to process under manual underwriting guidelines.
  • Next, check to see if you are working with an actual approved USDA lender.  If not, then the bank or broker you are working with may have to rely on feedback from the USDA lender they are submitting your file to which can lead to delays or possible miscommunication.

USDA Approved LenderAs an approved USDA lender, we are experienced in working with USDA guidelines for both manual and automated approvals and have specific systems in place for USDA processing from pre-qualification to closing.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA Advantages, USDA Credit Qualifying, USDA FAQs, USDA Income Qualifying, USDA Qualifying Property, USDA Underwriting Guidelines

Apr 16

8

What is a USDA loan and how do you qualify?

What is a USDA loan and how do you qualify?

Today’s video tip is great for any buyer that may have questions, so if you are a Realtor, you have my permission to forward and share this with your clients.

In my opinion, the USDA program is still very underutilized, with many banks and lenders not even offering the program, while others do so in a limited manner.  Today’s topic will answer the question on what is a USDA loan and explain how to qualify.

What is a USA loan and how do you qualify?

First off, the property being purchased must be a primary residence and be located within a USDA eligible area.  

Also, USDA loans are an income based program which calculates total family household income, not just who is on the loan.  However, for loan qualifying we can only use the income of whoever is on the loan, or otherwise known as repayment income. 

Thankfully, USDA has a very user friendly site that can help determine if your property is eligible and also provide county income limits for each state.

what is a usda loan and how do you qualifyWhile minimum credit conditions do apply, USDA loans can offer qualifying flexibility for previous bankruptcies, foreclosures, and short sales.  Exceptions are case by case, so if you have a scenario to discuss, please inquire with my team so we can start to review.

In situations where there is a limited credit history, USDA guidelines will also allow what is called non-traditional or alternative credit references such as verification of rent, telephone, or utility payment histories as common examples.

Remember that while USDA loans are thought of as being a first time homebuyer program, they are also available for previous homeowners.

Obviously this was just a beginning and a broad overview, but I wanted to share with you answers to common questions that we receive and help get your USDA journey started in the right direction!

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in First Time Home Buyer, USDA Credit Qualifying, USDA FAQs, USDA Income Qualifying, USDA Qualifying Property

Apr 16

1

Can you Qualify for a USDA Loan after a Short Sale?

Can you qualify for a USDA loan after a short sale?

With the many short sales that were finalized in the recent years, prospective buyers are now looking to re-qualify to purchase a home. Updated guidelines specifically address how to qualify for a USDA loan after a short sale, and today’s video tip will go over the details to keep you in the know.

Before we get started don’t forget to download our USDA blueprint for success with the link below. This free guide breaks down the USDA process step by step, so don’t be scared – be aware!

Effective March 9th, 2016 USDA has updated their 3555 handbook which now includes revised guidelines on how to qualify for a USDA loan after a short sale.

can-you-qualify-for-a-USDA-loan-after-a-short-sale

Can you qualify for a USDA loan after a short sale? 

As a starting point, the actual definition itself remains the same:

  • A short sale is considered a pre-foreclosure activity, and
  • An applicant is ineligible for a mortgage loan if they pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchases at a reduced price a similar or superior property within a reasonable commuting distance.

can-you-qualify-for-a-USDA-loan-after-a-short-sale

However, the following highlighted sections have been added:

“An applicant in default on their mortgage at the time of the short sale (or pre-foreclosure sale) is generally not eligible for a new mortgage loan for three years from the date of pre-foreclosure sale.”

“If an applicant was current at the time of short sale, or in the case of divorce at time of divorce, they may be eligible for a new mortgage loan. The prior mortgage payment history must reflect all mortgage payments due were made on time for the 12 month period preceding the short sale, or time of divorce, and all installment debt payments for the same period were also made within the month due.”

Additionally, the lender has also been provided with the ability to grant an exception in accordance with existing USDA credit exception guidelines which would be viewed on a case by case basis.

In summary, USDA guidelines now permit more flexibility and depending on the circumstances, it can be possible to qualify for a USDA loan after a short sale.

Please remember that credit scores do not guarantee approval and minimum credit conditions will apply.

Remember, not all lenders have experience with processing and closing USDA loans.  Metroplex Mortgage Services is an approved USDA lender, and we are known for our program expertise and have specific systems in place to process USDA loans from pre-qualification to closing.


Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA Credit Qualifying, USDA FAQs

Mar 16

18

Can you Qualify for a USDA Loan if you have recently graduated?

Can you Qualify for a USDA Loan if you have recently graduated? 

With a growing number of students who have recently graduated, but may have a lack of work history, this week’s video tip is important for those who are interested in the USDA loan program.

Also, if you have not yet done so, be sure to download our USDA Blueprint for success with the link below. This is a great resource for the USDA qualifying process and is designed for both homebuyers and Realtors alike.

How do you Qualify for a USDA Loan if you have recently graduated?

Customarily we will need a two year verification of employment history, but for graduates who may lack recent work experience due to time at school, this can still be possible.

USDA Guidelines state that there is no minimum length of time an applicant must have held a position to consider employment income as dependable. Qualify for a USDA Loan if you have recently graduated

As mentioned, we must verify an applicant’s employment history for the most recent two full years and additional careful review must be taken for an applicant who has been with their current employer for less than 12 months.

However, a reasonable allowance is permitted for applicants who are recent graduates provided this can be evidenced with proper documentation.

Other factors that may need to be taken into consideration during the underwriting review will be the following:

  • How long after graduation before employment started?
  • Is it part-time or a full-time position?
  • Does pay include any OT, commissions, or bonuses?

Remember, as previously discussed, repayment qualifying income such as overtime, bonuses, and commissions would need to document a 2 year history.

In summary, when schooling is to be substituted in place of work history, these can be case by case scenarios.  With that being said, please spread the word that options are available when trying to qualify for a USDA loan if you have recently graduated.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs, USDA Income Qualifying, USDA Underwriting Guidelines

Mar 16

11

Can you Qualify for a USDA Loan with Part-Time income or a Second Job?

Can you qualify for a USDA Loan with Part-Time Income or a Second Job? 

In today’s economy, it is more and more common to see secondary employment or someone who may not be considered full time.  It is important to know, options are available, but specific steps are required when trying to qualify for a USDA loan with part-time income or a second job.  Today’s video tip will keep you in the know!

By the way, don’t forget to take advantage of our free 2nd opinion service.  This is great for both existing transactions or new pre-qualifications.

qualify for a USDA Loan with Part-Time income or a Second JobHow do qualify for a USDA Loan with Part-Time income or a Second Job?

For cases when trying to qualify for a USDA loan with part-time income or a second job, this can still be possible but caution needs to be applied.

As a starting point, USDA guidelines state the following when calculating repayment income for Second Jobs or Part-Time employment:

  • The applicant has worked this position uninterrupted for the past two years and will continue to do so, and
  • This type of income must be likely to continue for the next three years in order to consider the income for repayment, and
  • To utilize secondary employment income, it must be reported on the applicant’s tax returns for the most recent two year period

Second or part-time job income refers to jobs taken in addition to the normal, regular employment to supplement the applicant’s income.  qualify for a USDA Loan with Part-Time income or a Second Job

It further states, that if an applicant’s regular employment is less than a typical 40-hour work week,

the stability of that income should be evaluated as any other regular, ongoing primary employment.

For example, a registered nurse that has been working 24 hours per week for the last year.

In summary, it can be possible to qualify for a USDA Loan with Part-Time income or a Second Job, but having a two year history is a critical first step in this calculation.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs, USDA Income Qualifying, USDA Underwriting Guidelines

Mar 16

4

How do you Qualify for a USDA Loan after Chapter 13 Bankruptcy?

Can you qualify for a USDA loan after Chapter 13 Bankruptcy?

Often bankruptcies are not due to financial negligence but because of a traumatic event outside of the person’s control. After filing for bankruptcy, many feel homeownership is a dream that is out of their reach. However, depending on the situation a USDA Rural Home Loan may be able to help!

Can you qualify for a USDA loan after Chapter 13 Bankruptcy?

Yes! It is possible to qualify for a USDA loan after Chapter 13 Bankruptcy, but it is also important to remember that the type of bankruptcy impacts the qualifying process as well.

Please remember the following basic differences between bankruptcies which impact USDA qualifying differently:

  • Chapter 7 Bankruptcy: you ask the bankruptcy court to discharge most of the debt you owe
  • Chapter 13 Bankruptcy: you file a repayment plan with the bankruptcy court to pay back all or a portion of your debts over time.

This does not cover all differences but just a frame of reference. Read a detailed description about each bankruptcy. qualify for a USDA Loan after Chapter 13 Bankruptcy

USDA guidelines currently require that absent any exceptions, a Chapter 7 bankruptcy must be discharged for 3 years.  In cases when a bankruptcy discharge has been less than 3 years, exceptions are available and the following will need to be reviewed and approved:

  • Was the activity that caused the bankruptcy temporary in nature?
  • What was the reason for the hardship in this situation
  • Were the circumstances surrounding the hardship removed?

However, when trying to qualify for a USDA loan after Chapter 13 Bankruptcy, we have much more underwriting flexibility with waiting periods after your discharge has been completed.  It can even be possible to qualify while you are still in the Chapter 13 bankruptcy repayment  plan! Let me explain further…qualify for a USDA Loan after Chapter 13 Bankruptcy

It is possible to qualify for a USDA loan while still in the Chapter 13 bankruptcy plan provided the following:

  • At least 12 months into the plan,
  • No late payments, and
  • Borrower receives written permission from the Bankruptcy Court or Trustee to enter into a mortgage application.

Further, once the Chapter 13 plan has been completed, a credit waiver is not required provided the applicant can documents that they have demonstrated a willingness to make on-time payment for the 12 months prior to loan application.

I know we covered a lot today, but in today’s market it is critical to understand how you can qualify for a USDA loan after a Chapter 13 Bankruptcy.

Remember that minimum credit conditions will apply for all loans.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA Advantages, USDA Loan After Bankruptcy

Feb 16

26

How many acres can you buy with a USDA loan?

How many acres can you buy with a USDA loan?

This is a common question that I receive, and while many associate the USDA program with a farm loan, in the past there have been issues and frustrations when the land value significantly outweighed the value of the home.

However, recent positive guideline changes have opened up flexibility for properties with increased acreage. Today’s video will answer the question and explain how many acres can be eligible with a USDA loan.

How many acres can you buy with a USDA loan?

how many acres can you buy with a USDA LoanAs a point of clarification, the USDA program is designed for Single Family Housing and is not a solution for working farms or income producing properties. With that being said recent improvements have been made to the guidelines covering allowable land value.

USDA loan requirements and guidelines previously had stated the following in situations when the site value exceeded 30% of the total overall appraised value:

1) The value of the site must be typical for the area, as evidenced by the appraisal; and
2) The parcel cannot be subdivided into two or more sites.

For example, if you had a property that appraised for $100,000 and the appraiser noted that the site value of the appraisal was at $35,000, then that portion would be at 35% of the appraised value thus exceeding the guideline. This would then have required both of the mentioned steps to be met in order to proceed.

However, a very key point that has been clarified in the new USDA 3555 guidelines. It simply states the following under the site size guideline requirements:

“The site size must be typical for the area.”

This simple clarification clearly opens up the potential for larger acreage properties without the further burden required to document if the property could be subdivided.

This could potentially increase the amount of acres you can finance with a USDA loan and the available property types, thus helping more USDA qualified buyers.

how many acres can you buy with a USDA LoanIn summary, do not assume in cases of acreage that it may or may not be eligible for a USDA loan. Comparable sales in the area will help to justify if the site value is typical for the area.

Unique properties can require additional review upfront, so if you have any questions, contact my team so we can start to review and help determine how many acres you can buy with a USDA loan.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs

Feb 16

19

Do USDA loans require 2 years at the same job?

Do USDA loans require 2 years at the same job?

Work history can be critical when qualifying for a mortgage, but do USDA loans require 2 years at the same job?

As with many guidelines, there is quite a bit of myth to this topic and today’s video tip will provide critical details. If you do know of anyone that may have been turned down due to their time on the job, please take advantage of our free Second Opinion Service (SOS) and see if we can help turn their financing around!

So, Do USDA loans require 2 years at the same job?

When I talk with buyers and Realtors, it is common to be asked if USDA loans require 2 years at the same job.

As you can imagine, guidelines regarding employment history are critical when trying to qualify for a USDA loan.

Do USDA loans require 2 years at the same job?

USDA guidelines state the following regarding employment:

There is no minimum length of time an applicant must have held a position to consider employment income as dependable.
However, the lender must verify the applicant’s employment for the most recent two full years and verify that the applicant’s income has been stable.

If an applicant indicates he or she was in school or in the military during any of this time, the applicant must provide evidence supporting this such as college transcripts or discharge papers.

If the applicant has recently re-entered the workforce after an absence to care for a family member or minor child, extended medical illness, or other circumstance reasonable to the lender, the applicant must provide evidence.

The applicant should not have any gaps in employment of more than a month within the two year period prior to making the loan application.

It remains the lender’s responsibility to analyze the gaps in employment as it relates to the probability of continued income.

Applicants that have not been employed for 12 months with their current employer or have experienced a significant earnings increase are considered high risk. Lenders must ensure the applicant will have the required stable and dependable income to carry the mortgage debt.

Do USDA loans require 2 years at the same job?

It is important to point out, that while you do not have to be on the same job for 2 years in order to qualify for a USDA loan, approved lenders must still determine stable and dependable monthly income from verified sources.

Please remember that job stability provides strength with your qualifying and having long time employment at the same job can be a very strong compensating factor towards both underwriting and USDA Rural Development approval.

Qualifying for a USDA home loan can be both difficult and overwhelming, but when you work with a lender that specializes and understands the USDA loan process can eliminate the uncertainty and open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next six months, download your free USDA Blueprint for Success! This is a great educational resource for both buyers and Realtors.

For more immediate scenarios, click here to get pre-qualified for a USDA mortgage today!

So, keep us in mind for your next pre-qualification or if you have a current transaction experiencing financing difficulty and need an expert opinion.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

And don't forget, we are known for returning calls, replying to your emails, and responding to voice mails.

Please remember that mortgage requirements are constantly changing so stay current and up to date by subscribing on the right for future video tips.

Comments

Powered by Facebook Comments

Posted in USDA FAQs


Sean Stephens

Metroplex Mortgage Services

Contact Me Here
Toll Free: (800) 806-9836 Ext. 280
NMLS ID# 185288

Subscribe below to keep getting future updates for free!

 
 
 
 
 
 
captcha
 
* indicates
required
 

Search USDA Loan Pro

USDA Loan Calculator

Use This Calculator To Help Stay Within Your Budget:

Purchase Price
Loan Term 30 Years
Interest Rate
Annual Taxes
Annual Insurance
Financing: 100%
Purchase Price with
2.75% Guarantee Fee
Principal & Interest
USDA Premium
Total Estimate

*Taxes and Insurance can vary from property to property.

Note: This USDA Loan calculator is for estimating purposes only and is neither a Loan Estimate or Commitment to Lend.

Minimum credit conditions will apply on all loans.

Zillow Testimonials

Reviews on Zillow
1156328
"Sean Stephens and his staff over were extremely helpful and knowledgeable regarding the process for buying a USDA property. The experience so far has ... more "
5.0/5.0
by ehowden
1024042
"Sean and his staff were easy to work with and they performed above and beyond what was required. Sean got me a loan with the lowest interest rate ... more "
5.0/5.0
by msmith6966
649638
"The team at Metroplex Tampa went above and beyond, locking in a very low rate for us. We shopped the rate around too, and the "big guys" couldn't ... more "
5.0/5.0
by rorschach19

Contact USDA Loan Pro

Fill out my online form.
Become a Fan on Facebook Follow Us on Twitter Pin us on Pinterest View Our YouTube Videos1+ out Google+ page Connect with us on LinkedIn

LinkedIn




Welcome to USDA Loan Pro

Archives

Member of Better Business Bureau in Texas and Florida
Tampa MapDallas Map