Apr 17

29

Can you have two VA loans at the same time?

Can a Veteran be eligible for two VA loans at the same time?

What happens if a Veteran wants to purchase another home with their VA eligibility before their current VA loan is paid off?

In today’s video, I will break down the details on how it is possible for a Veteran to have two VA loans at the same time.

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

Can you have two VA loans at the same time?

When discussing VA entitlement, it can be complicated, so bear with me on the details so I can walk you through the steps on how a Veteran can have two VA home loans at the same time!

Can you have two VA loans at the same time?

First off when discussing VA entitlement, it will be broken up into Basic and additional entitlement, which commonly may be referred to as “Bonus” entitlement.

Basic Entitlement can never exceed $36,000 and is used to guaranty VA home loans up to $144,000.

Also, a Veteran has additional entitlement or “Bonus” entitlement, which can be used on loan amounts that exceed $144,000. This will cover the remaining loan amount in excess of $144,000 up to the FHFA’s conforming loan limit, which is currently $424,100.  FHFA loan limits may be higher depending on the county where the property is located.  Please review these resources for further information on how to calculate a VA Home Loan:

FHFA County Loan Limits

VA County Loan Limits

Remember, “Bonus” entitlement can still be used even if a Veteran has $0 remaining of their basic entitlement!

VA “bonus” entitlement can be used in the following examples where a Veteran has lost part of their entitlement:

  • When a Veteran currently holds a VA loan in their name; or
  • May have went through a previous bankruptcy, foreclosure, or a short sale with a VA loan;

If you have used some of your basic entitlement, you may be eligible to use the remaining basic or also utilize any remaining “bonus” entitlement. Lenders will generally lend up to 4 times your available entitlement without requiring a down payment, provided your income and credit qualify, and the property appraises for the asking price.

Can you have two VA loans at the same time?

I realize the terminology can be complicated, but as a VA approved lender, use my team as a resource to discuss your qualifying questions and how you can have two VA loans at the same time.

We at Metroplex Mortgage Services want to take this moment and thank all of the brave men and women who serve our country. We are forever grateful!

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.

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Posted in USDA FAQs

Apr 17

21

How soon can you qualify for a mortgage after a Chapter 13 Bankruptcy?

Can you get a mortgage immediately after discharge of a Chapter 13 Bankruptcy?

With USDA, FHA, VA, or Conventional loans Chapter 13 Bankruptcy waiting periods can be more flexible when compared to Chapter 7.  In today’s video I will explain the differences and qualifying advantages between each program side by side.

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

How soon can you qualify for a mortgage after a Chapter 13 Bankruptcy?

In many cases a Chapter 13 does not occur due to financial mismanagement, but instead due to third party events and circumstances that are outside of the homeowner’s control.

With that being said, once a Chapter 13 Bankruptcy has been discharged, waiting periods will apply with how quickly you can be able to qualify for a mortgage.

Tampa Florida USDA Approved Lender

As a general overview and starting point, here are the differences between a Chapter 7 and Chapter 13 bankruptcy:

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

Additionally, because of the required repayment period under a Chapter 13, underwriting guidelines are more flexible with how soon a potential buyer can qualify after discharge.

 Here are the standard Chapter 13 Bankruptcy qualifying guidelines for VA, USDA, FHA, & Fannie Mae:

Conventional loans under Fannie Mae: 2 years from the discharge date

USDA, FHA, and VA Loans will allow financing immediately upon completion of the Chapter 13 repayment plan, which means there is no additional waiting period needed after the discharge date!

Now, due to the short time allowed for mortgage qualifying after completion of a Chapter 13 bankruptcy, more stringent manual underwriting guidelines may apply and additional review will be needed to determine eligibility.

Tampa Florida USDA Approved Lender

When trying to qualify for an FHA loan after a Chapter 13 bankruptcy, remember to be cautious about subsequent deed transfer dates when there was a mortgage included in a bankruptcy, because while FHA bankruptcy guidelines apply after the Chapter 13 discharge date, FHA will then restart their three year foreclosure waiting period from the date the deed officially transfers out of the homeowner’s name!

Thankfully, USDA, VA, and Fannie Mae guidelines are more lenient when a mortgage was included with a bankruptcy and do not restart the foreclosure waiting period based on the deed transfer date.

We realize that qualifying after a Chapter 13 bankruptcy can be complicated, but that is where we step in to help. My team is built to help walk homebuyers through the qualifying  process step by step.

Just simply call or email to discuss your scenario, schedule a convenient call back time, or complete our 1-2-3 online pre-qualifier to get started.

We are able to offer specific experience and expertise on how to qualify for a mortgage after a Chapter 13 Bankruptcy, and  through this, we are able to provide value to the communities we serve.

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

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.

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Posted in USDA FAQs

Apr 17

8

How long do you have to be on the same job for USDA loan approval?

How long do you have to be on the same job to qualify for a USDA loan?

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

Additionally, we also find that there is quite a bit of misunderstanding of what is actually required for USDA employment history and in today’s video tip we will cover the details of how long you have to be on the same job to qualify for a USDA loan.

However, before we get started please take advantage of our free second opinion service “SOS” which is designed to help Realtors and Buyers get access to an expert second opinion and is great for both new pre-qualifications and loans that are currently in progress.

So, do you really have to be on the same job for 2 years in order to qualify for a USDA loan?

How long do you have to be on the same job in Florida for USDA loan approval

While it is ideal that a potential applicant has an established history of working for one employer, it is NOT a requirement.  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 USDA Approved Lender’s responsibility to analyze the gaps in employment as it relates to the probability of continued income.

How long do you have to be on the same job in Florida for USDA loan approval

Applicants that have not been employed for 12 months with their current employer or have experienced a significant earnings increase are considered high risk.

USDA Approved Lenders must ensure the applicant will have the required stable and dependable income to carry the mortgage debt.

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, 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 also 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.

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Posted in USDA FAQs

Mar 17

31

Can you roll closing costs into a USDA loan?

Can you “roll” closing costs into a USDA loan?

While I am commonly asked this specific question, “rolling costs into a USDA loan”, makes it sound as if this automatically occurs without any additional steps.

Additionally, many  associate no down payment or 100% financing as being the same as no money out of pocket, and because these are two completely different things, this can lead to high frustration if not properly explained. 

Thankfully, USDA loans are flexible with how you can manage closing costs and in today’s video tip we will cover the details about how you can finance closing costs into a USDA loan and help reduce those out of pocket expenses.

Can you roll closing costs into a USDA loan?

As a starting point, USDA loans allow for No Down Payment (100% financing), but that should not be confused with No Money out of Pocket because it is customary for a buyer to have two types of out of pocket  expenses:

  1. Down Payment, and
  2. Settlement charges (also known as closing costs)

Can you roll closing costs into a USDA loan

USDA loans eliminate the need for a down payment, but the homebuyer is still responsible for their respective costs.  This can be either paid by using their own funds, negotiated for the seller to pay through the sales contract, or in the case of a USDA home loan the possible ability to finance those costs into the loan.

Financing closing costs with a USDA loan is available in cases when the appraised value is HIGHER than the agreed upon sales prices

Here are examples of what settlement charges can be financed into a USDA loan:

  1. Closing Costs such as Title Charges, Loan Costs, Survey, Recording Fees, etc.)
  2. Pre-Paid Items such as your Escrow Accounts, Homeowner’s Insurance Premium, and Pre-paid Interest.

USDA Approved Lender List Tampa Florida

Key points to remember are that the appraised value must be higher than the sales price for this feature to be available.

This is unique for USDA home loans, and not available under Conventional, FHA, or VA programs.

Homebuyers should be cautious if they are solely relying on financing closing costs to cover their out-of-pocket expenses, because that is determined by the final appraised value which happens after the sales contract is agreed upon.  Financing closing costs should be viewed as a potential advantage, not a guarantee!USDA Approved Lender List Tampa FL

As you can see by the facts today, don’t just assume that you can “roll” closing costs into a USDA loan, but understand that depending on the appraised value, you may be able to increase your loan amount and finance closing costs into a USDA loan.

Also, if you need help or have a question that is what we are here for, so just call or email because we are known for returning calls, replying to emails, and responding to your messages.  Wouldn’t it be nice if everyone did that!

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.

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Posted in USDA FAQs

Mar 17

25

Do you know the minimum property requirements for a USDA loan?

What are the minimum property requirements for a USDA loan?

The question of USDA minimum property requirements is a common one that I receive, and today we will cover the basics that need to be known for buyers, sellers, and Realtors alike.

However, before we get started please take advantage of our free Second Opinion Service “SOS which is designed to help Realtors and buyers get access to an expert second opinion and is great for both new pre-qualifications and loans that are already in progress.

What are the minimum property requirements for a USDA loan?

USDA loans are covered by FHA HUD Handbook guidelines for minimum property Tampa FL USDA Approved Lenderrequirements (MPRs).

An FHA roster appraiser may certify compliance to the handbooks when inspecting the property

However, it is not acceptable for an appraiser to simply comment that the property “appears to meet” or “seems to meet” HUD Handbook requirements.

So what are some red flags to look out for?

While there can be any number of issues that may require repairs, a good rule of thumb is to observe the following:Tampa FL USDA Approved Lender

  • Safety,
  • Sanitary, and
  • Structurally Sound

If your concerns impact any one of these aspects of the home, then it may very well need to be corrected prior to closing.

Remember that today’s topic covered USDA minimum propertyTampa FL USDA Approved Lender requirements, but understand that additional conditions can be requested by the underwriter or appraiser that go above and beyond depending on the circumstances of the situation.

Now, if you have a loan in process and a transaction underway, it would be best to discuss any specific property related concerns with your lender and Realtor.

Additional resources on HUD Minimum Property Requirements can be found at:

https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

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.

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Posted in USDA FAQs

Mar 17

17

How soon can you qualify for a mortgage after a Chapter 7 Bankruptcy?

What are the bankruptcy waiting periods for USDA, FHA, VA, and Conventional?

With USDA, FHA, VA, or Conventional loan programs, Chapter 7 Bankruptcy waiting periods are different and in today’s video I will explain how soon you can qualify for a mortgage after a Chapter 7 Bankruptcy and compare the programs side by side.

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

How soon can you qualify for a mortgage after a Chapter 7 Bankruptcy?

In many cases a Chapter 7 bankruptcy does not occur due to financial mismanagement, but instead due to third party events and circumstances that are outside of the homeowner’s control.

How soon can you qualify for a mortgage after a Chapter 7 Bankruptcy in Florida

With that being said, once a Chapter 7 Bankruptcy has been discharged, waiting periods will apply which will determine how quickly you can qualify for a mortgage.

Currently, here are the published Chapter 7 Bankruptcy standard qualifying guidelines for USDA, FHA, VA, and conventional:

VA Loans
VA Loans are the most lenient and allow for 2 years after bankruptcy discharge;

USDA Loans
While USDA Loans require 3 years after bankruptcy discharge, exceptions can be possible which my office has successfully processed and closed;

Conventional Loans
Conventional Loans under Fannie Mae and Freddie Mac have a 4 year waiting period for mortgage qualifying after bankruptcy discharge; and

FHA Loans
While FHA Loans have a 2 year waiting period after bankruptcy discharge, be extremely cautious when a mortgage was included in the bankruptcy.

If there was a mortgage discharged through bankruptcy, it is important to find out when the deed to the property actually transferred out of your name, because while FHA guidelines only have a two year waiting period after a Chapter 7 Bankruptcy discharge, FHA will then restart their three year foreclosure waiting period from the date the deed officially transfers out of the homeowner’s name!

How soon can you qualify for a mortgage after a Chapter 7 Bankruptcy in Florida

Thankfully, USDA, VA, and Fannie Mae guidelines are more lenient when a mortgage was included with a Chapter 7 Bankruptcy and do not restart the foreclosure waiting period based on the deed transfer date.

My office has been able to successfully process USDA loan exceptions after a Chapter 7 Bankruptcy depending on the factors involved.

However, remember that any exceptions would be looked at on a case by case scenario based on the facts and circumstances of that individual situation.

If you are trying to qualify for a mortgage and have recently been denied because of a previous Chapter 7 Bankruptcy, please take advantage of our free Second Opinion Service (SOS) which is great for both new pre-qualifications and existing transactions.

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.

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Posted in USDA FAQs

Mar 17

11

What are USDA loan credit score requirements?

What are the minimum credit requirements for a USDA loan?

With so much emphasis on credit scores, it is important to remember that while a certain credit score can open the door to USDA loan eligibility, a certain score on its own will not guarantee an approval. 

Today’s video tip will discuss USDA loan credit score requirements and other USDA minimum credit qualifications.

Also, don’t forget to download our USDA blueprint for success with the link below. It is designed to walk you through the USDA loan process, step-by-step, and is great to share with clients, friends, and co-workers as an educational resource.

What are USDA loan credit score requirements?

While a 640 qualifying credit score can open the door to improved USDA qualifying ability through the GUS automated underwriting system, that in itself does not guarantee USDA loan approval.Tampa FL USDA Loan Approved Lender

Even when the credit score exceeds the minimum requirement, the lender must determine that each applicant, individually, and all applicants collectively have an acceptable credit reputation.

As mentioned above, the ability to received automated eligibility for a more streamlined approval process through the GUS underwriting system begins with a minimum qualifying score of 640, but USDA manual underwriting is available for credit scores below that mark.

However, USDA guidelines further state that “Loans with credit scores of 580 or below should not be approved” and certain lenders may not even offer manual underwriting or have the necessary experience to approve USDA loans with scores below 640.

While higher scores will be a contributing factor towards USDA loan approval, we will take the merits of each individual situation into consideration during the qualification process.

Tampa FL USDA Loan Approved Lender

In addition to meeting a minimum credit score, USDA Guidelines state the following:

“To be eligible for a guaranteed loan, an applicant must have a credit history that demonstrates that they are reasonably able and willing to repay the loan and meet obligations in a manner that enables the lender to draw a logical conclusion about the applicant’s commitment to the indebtedness.”

Further review and analysis will be taken in the case where the following are present on the credit report:

  • Collections
  • Judgments
  • Liens
  • Late payments
  • Previous foreclosures, bankruptcies, and short sales

In summary, meeting a certain credit score will help you down the path to USDA eligibility, but to gain USDA loan approval, potential applicants will be required to meet USDA credit reputation requirements.

If you are having trouble with another lender, please take advantage of the Metroplex Mortgage Services USDA Approved Lender 2nd opinion service, where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are currently in progress.

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.

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Posted in USDA FAQs

Mar 17

3

Do USDA loans have an acreage limit?

Is there an acreage limit with a USDA Rural Home loan?

When working rural areas, it is common to ask how many acres can you buy with a USDA loan? Thankfully due to updated guidelines, it is now a more simplified process when it comes to reviewing USDA Home Loan acreage requirements.  

With the improved guidelines, it has opened up USDA 100% financing flexibility for properties with increased acreage and also allow for a wider variety of property types to be eligible for USDA loan eligibility.  

Today’s video tip will shed light on how many acres can are allowed with a USDA Rural Home Loan.

So, how many acres can you finance with a USDA Rural Home Loan?

Tampa FL USDA Home Loan Approved Lender

While it is true that there are numerous programs under the USDA umbrella and it may seem natural to connect the words USDA with acreage, when dealing with the USDA Single Family Housing Guaranteed Loan Program there are important facts to understand.

As 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 Guidelines previously had the following guidelines 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.

Tampa FL USDA Home Loan Approved Lender

In 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.    

When determining how many acres may qualify with a USDA loan, remember that increased acreage can require additional review upfront, so if you have any questions contact my dedicated team so we can help determine how many acres may be eligible with your next USDA loan. 

Remember, if you need help or a have question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

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.

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Posted in USDA FAQs

Feb 17

25

What inspections are required for a USDA loan?

What inspections are required for a USDA loan?

Once a sales contract has been signed, ordering inspections may be one of the next steps, but what inspections are required for a USDA loan?

With so many types of inspections to choose from, this can be a common question, and having this information at the beginning of the process can help you stay organized and not get overwhelmed.

As a quick reminder, in addition to our USDA expertise, we are also a VA approved lender and work daily with low down payment conventional and the FHA program.  Realtors and buyers refer to us for our overall Government loan experience, so keep us in mind for your next referral or when you need that expert 2nd opinion.

What inspections are required for a USDA loan?

As a starting point, remember that home inspections are not required for USDA loan qualifying.  However, with that being said, they are highly encouraged for a buyer’s best interest.

Tampa FL USDA Approved Lender

Another point of confusion is what importance does the appraisal have with regards to inspections?  Remember, an appraisal will provide an overview of the property with determination of value and that it meets minimum property conditions as outlined per USDA and HUD Handbook guidelines.  – This should not be treated as a substitute for a home inspection

It is important to remember that if the appraisal recommends any additional specific inspections such as for the roof, foundation, plumbing, septic tank, etc., then those would also be required for review.

However, in the case of private wells or individual water systems owned and maintained by the homeowner, there will need to be a water test completed that meets either state or local requirements.

Tampa FL USDA Approved Lender

This test must be completed through either the local health authority or a state certified laboratory.  If no specific quality requirements exist, levels established by the EPA will apply.

In summary, when questions arise about what type of inspections are required for a USDA loan remember the following key points:

  • While home inspections are highly encouraged, they are not required
  • After appraisal has been completed, additional inspections may be necessary
  • Private Wells and individual water system will require a water quality test
  • No septic tank inspections, unless otherwise required by the appraisal

If you have any questions about what inspections are required for a USDA loan, just call or email to discuss your scenario and let us show you the “Metroplex” difference”!

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

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Posted in USDA FAQs

Feb 17

17

Can you qualify for a USDA loan if your credit score is below 640?

Can you qualify for a USDA loan if your credit score is below 640?

While many lenders will only offer USDA loans if your credit score is 640 or above, it can still be possible to qualify for a USDA loan when your score is below that mark.

In today’s video, I will walk you through the qualifying steps on how it can be possible to qualify for a USDA loan if your credit score is below 640.

but before we get started, for those that have been denied by another lender or bank please take advantage of our free second opinion service “SOS” which is a resource designed to help Realtors and Buyers get access to an expert second opinion and is great for both new pre-qualifications and loans that are already in progress.

As a starting point, by having a 640 qualifying credit score, it allows access to the USDA automated Guaranteed Underwriting System (GUS) which can allow for a more streamlined approval process.

Tampa FL USDA Approved Lender

Also, USDA guidelines state that loans with credit scores of 580 or below should not be approved.  However, while a certain credit score can help open the door to available loan programs, it is important to understand that a credit score does not guarantee an approval.

In cases when your credit score is below 640, it is still possible to qualify for a USDA loan under more stringent underwriting guidelines.  If you are not familiar with the term, it is exactly how it sounds, a more manual process to qualify for a USDA loan.  For example, we may need to verify rental payment history, or require more explanations for any collections, charge-offs, or previous negative credit history.

Tampa FL USDA Approved Lender

It is always important for a potential applicant to show their intent for good credit through proper explanations and documenting any adverse credit which includes evidence to support that the negative event was:

  1. Temporary in nature
  2. Beyond the applicant’s control, and
  3. Circumstances contributing to the adverse credit have been removed.

Once this evidence has been provided, a properly documented credit waiver will be created to explain the details surrounding the adverse credit, thus supporting the underwriter’s rationale for initially approving the loan.

While the steps seem overwhelming, through proper planning and guidance, USDA loan qualifying can be possible with credit scores below 640.

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.

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Posted in USDA FAQs


Sean Stephens

Metroplex Mortgage Services

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

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