Mar 15

27

How Long Does It Take to Save for a House?

Do you know how long it will take to save for a home?  What about how much money will you need to buy a house?  As you can imagine, these questions are surrounded by both myth and fact.

If you are trying to save for a down payment on a house right now, and you live in Florida, Texas, Tennessee, Alabama, today’s topic will help explain and compare current available home loan programs.

Over a decade to save for a down payment?

A recent article by Marketwatch.com indicates that it would take on average 12.5 years in order to save up for a 20% down payment.  Yes, that is over a decade!

Thankfully, affordable mortgage programs do exist, but as I talk to more and more potential homebuyers, many are just not aware of the available options.

USDA loan steps to closing florida

Affordable Mortgage Program Comparison

If you are buying a primary residence, the following programs are available:

  • USDA Rural Home Loans:

USDA Loans offer 100% financing (No Down Payment) and the ability to finance closing costs into the loan when the appraised value is higher than the sales price.  This is only eligible for designated rural areas and household income limits will apply.

  • VA Loans:

VA Loans allow for 100% financing (No Down Payment) and are restricted to eligible service members.  VA Loans can provide for qualifying flexibility with previous short sales, foreclosure, and/or bankruptcy.

  • FHA Loans:

FHA Loans have a minimum down payment requirement of only 3.5% and allow for credit qualifying flexibility.

Florida USDA mortgage save

Common traits for all of these programs are:

  • Full Income and Asset verification
  • Sufficient equity and minimum credit qualifying conditions are required
  • Primary residences only
  • Credit qualifying flexibility
  • Gift Funds are allowed

So while it could take over a decade to save for a house, thankfully there are some great flexible loans that could mean that you, or your client’s, dream of owning your own home is closer than you think!

It doesn’t have to take over 12 years to save for a home. The Metroplex Mortgage team are experts in the USDA, VA and FHA programs. Call or email us to discuss your situation today, or take advantage of our free second opinion service! 


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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

20

Are Your Debt Ratios Too High for a USDA Loan?

It is true that USDA loans offer a high amount of qualifying flexibility, and it is also possible to qualify even when debt ratios exceed USDA published guidelines. With proper documentation, USDA home loans will allow for debt ratios waivers to be approved.

How do you qualify for a USDA Debt Ratio Waiver?

If you are thinking about a USDA loan in  Florida, Alabama, Tennessee or Texas but you have been told that your debt ratios are too high,  don’t lose hope, because as an approved USDA lender – Metroplex Mortgage Services may be able to help!

USDA loans with high debt ratio in Texas

USDA Guidelines on High Debt Ratios

USDA published guidelines for debt ratios are 29% for housing and 41% for total overall expenses. 

For housing and debt ratios higher than 29/41, debt ratio waivers may be approved pending the following USDA eligibility criteria:

First off, a minimum qualifying credit score of 680 or higher will be required; and at least one of the following compensating factors:

1. Proposed PITI (housing expense) is equal to or less than the applicant’s current verified housing expense for past 12 mos. (Documentation will be required)

2. Accumulated savings of liquid assets available post loan closing of at least 3 mos. or greater (PITI payments after closing)

3. All employed applicants have been continuously employed with their current primary employer for a minimum of 2 years.
  Not Applicable for Self Employed Applicants

Remember, USDA debt ratio waivers do not apply to GUS files that receive an “Accept” underwriting recommendation.  The Guaranteed Underwriting System or “GUS” is the specific USDA automated underwriting system used to assist lenders in processing USDA Rural Home Loans.

USDA-debt-ratio-USDA-loan-florida

In addition to a USDA debt ratio waiver,  USDA eligibility guidelines will also permit for installment accounts with 10 months (or less) remaining to be taken out of the qualifying ratio calculation. This does not include revolving accounts (credit cards). 

So, if you have found the perfect home and have had issues with high debt ratios, a USDA home loan may be able to help. Call us for a free USDA Home Loan second opinion! 


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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

13

Can a USDA Property have an In-Ground Swimming Pool?

The December 2014 changes to the USDA guidelines removed the prior value restrictions on in-ground swimming pools on USDA eligible properties. These changes have brought the program into line with FHA, VA and Conventional appraisals.

Today’s video tip will keep buyers, sellers, and realtors in the know when USDA financing is involved with a property with an in-ground swimming pool.

If you are thinking about a USDA loan and the property you have found in  Florida, Alabama, Tennessee or Texas with an in-ground swimming pool, there is good news!

USDA loan Florida

Review of Previous USDA Requirements

Prior to 12/1/14 properties that had in-ground swimming pools were not considered in USDA’s modest housing definition. One myth that existed, was that USDA loans would not finance homes with inground pools, but that was not true.  However, financing was possible, but no value could be credited to the pool. For example, if your property appraised for $120,000 and the appraiser noted that the value attributed to the pool was $15,000 – then the most we could finance would have been $105,000.

This previous requirement created confusion among Appraisers, Realtors, and Homebuyers along with creating possible cash to close issues due to financing limitations.USDA loan Texas

Updated Guidelines

Now, we can see another positive change under the updated USDA 3555 regulations which modernize their in-ground swimming pool guidelines and simply state that:

“The agency may approve dwellings with in-ground swimming pools.”

It’s business as usual for eligible properties with in-ground swimming pools!


Make sure to share the good news with any listing agents or sellers when your next offer involves USDA financing with a home that has an in-ground swimming pool.   As always, please feel free to reach out to my team with any USDA property eligibility questions.

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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

6

USDA Loan with a Property Located in a Flood Zone?

Wondering how a flood zone affects USDA loan eligibility?  For anybody who has had this situation come up before, USDA guidelines have implemented a key change that will make a significant impact when moving forward on existing properties located in flood zones.

Today’s video tip will keep buyers, sellers, and realtors in the know when USDA financing is involved with a property in a flood zone.

If you are thinking about a USDA loan and the property you have found in  Florida, Alabama, Tennessee or Texas is in a flood zone, there is good news!

USDA loan flood zone florida

Review of Previous USDA Requirements

Prior to12/1/14, USDA guidelines  required the following when a property was located in a Special Flood Hazard Area (SFHA):

“A flood elevation certification is also required to ensure the first floor of habitable space (including basements and mechanicals located in crawl spaces) is above the 100 year flood zone elevation.”

At best this could be a tedious process and at worst even if flood insurance was available, being able to move forward was contingent on receiving an acceptable flood elevation certificate as mentioned.

Updated USDA Requirements

USDA loan flood zone Texas

Now, we can see another positive change under the updated USDA 3555 regulations which modernize the flood insurance guidelines.  Now, they simply require that existing dwellings are eligible if flood insurance is available for the community through:

  • FEMA’s National Flood Insurance Program (NFIP) , or
  • A policy under the “Write your Own Program”, or
  • Private flood insurance as approved by the lender, is purchased by the borrower

Assuming the homebuyer is able to purchase acceptable flood insurance, the need for the additional step required for calculating the base flood elevation is no longer needed for existing properties.

However, obtaining an acceptable flood elevation certificate is still the requirement for new construction properties.  If you have questions on how to qualify for a USDA loan on a new construction property, we have a high level of experience on these transactions so please call me team to discuss your questions today.


It is important to not get bogged down into the details on today’s video tip, but instead take away the positive change which now simply requires the need to for the homebuyer to obtain acceptable flood insurance on the property like other programs require.

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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

27

How Can You Qualify for a USDA Loan after a Short Sale?

If you, or one of your clients, made the difficult decision to opt for a short sale on a previous mortgage, it has been a challenging process but hopefully the time has come to start rebuilding.  With the many short sales that were finalized in recent years, we have had many inquiries about qualifying for a USDA loan after a short sale.

The USDA has recently clarified the eligibility requirements in regards to short sales, so this week we are breaking down exactly how you might be able to qualify for a USDA loan after a short sale and the exemptions that apply if the waiting period has not yet elapsed.

If you are thinking about a USDA loan with a previous short sale in Florida, Alabama, Tennessee and Texas, understanding the USDA’s short sale guidelines is essential for achieving your dream of owning your own home again.

USDA-loan-short-sale

What You Need to Know About USDA Loans after a Short Sale 

As a point of clarification, prior to 12/1/14 USDA guidelines did not specifically mention qualifying criteria when previous short sales were involved.  Instead they were considered under their general adverse credit guidelines.

However, the newly updated guidelines with the 3555 Handbook state the following when evaluating credit qualifying which involve short sales:

  • A short sale is considered a pre-foreclosure activity or event
  • 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.
  • An applicant in default on their mortgage at the time of the short sale (or pre-foreclosure sale) is not eligible for a new mortgage loan for three years from the date of pre-foreclosure sale.

USDA-short-sale

Exceptions to the USDA guideline when trying to qualify after a short sale are possible:

If an applicant was current at the time of short sale, 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 and all instalment debt payments for the same period were also made within the month due.

As many of us know, having a mortgage current at time of a short sale being finalized may be a very difficult task.

This new guidance is very specific and leaves little room for exception when trying to qualify for a USDA loan after a short sale.  However, if your situation dictates further review and may possibly meet the exception criteria provided, please contact my office so we can discuss in detail.


Remember, not all lenders have experience with processing and closing USDA loans.  As an approved USDA 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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

20

Can you qualify for a USDA Loan after foreclosure?

Do you have questions about qualifying for a USDA loan after foreclosure? Bouncing back after a foreclosure takes time, but the flexibility of the USDA loan program means that you could be back in your own home again… and sooner than you might think.

The waiting period to qualify for a USDA Rural Development loan after a foreclosure is generally three years from the recorded date of the foreclosure. Depending on the factors involved, a USDA Loan may be able to help you qualify after a foreclosure before the waiting period has elapsed.

If you are thinking about a USDA loan with a previous foreclosure in Florida, Alabama, Tennessee and Texas, understanding the USDA loan foreclosure guidelines is essential for achieving your dream of owning your own home again.

USDA loan foreclosures

USDA Loan After Foreclosure Guidelines

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.

USDA loan foreclosures application


It is also important to note that the following limitations will apply when seeking a possible exception to the USDA 3 year waiting period after 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 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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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, USDA Loan After Bankruptcy

Feb 15

13

Can you qualify for a USDA loan if you had a mortgage included with a bankruptcy?

USDA loan qualifying guidelines are very specific for mortgages included with a bankruptcy and resulting deed transfers.

Depending on the situation, you may be able to qualify for a USDA loan after a Chapter 7 bankruptcy, but 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!

In cases when there is a Chapter 7 Bankruptcy which included a mortgage, loan qualifying questions can arise about the actual timing of when the deed to the property’s ownership transferred out of the homeowner’s name officially.

usda loan with mortgage included in bankruptcy

Remember, on FHA loans there is 2 year bankruptcy discharge period, and on top of that, a 3 year waiting period on foreclosure completions. This only starts after the deed to any property in question transfers out of their name.  As many have experienced, this could be months or even years after the actual bankruptcy was discharged.

Unlike the FHA guidelines, the USDA guidelines state the following:

“When a Chapter 7 bankruptcy absolved the mortgage debt for the applicant, any foreclosure or remaining foreclosure pending is an action against the property, not the applicant. The foreclosure action is not considered as adverse credit in the applicant’s evaluation. A loan underwritten with the assistance of GUS will not be required to be manually down-graded when the bankruptcy discharge included the mortgage debt.”

Advice on USDA Loan Qualification with Bankruptcy

Just be aware- if the property has not officially transferred yet, additional requirements will need to be reviewed for USDA eligibility.


Many loans have come across my desk for a 2nd opinion that were not reviewed properly by the original lender because of this specific guideline.  It is critical to understand the details about how to qualify for a USDA loan when there is a prior deed transfer after a bankruptcy – it could mean the difference between a closing or a missed opportunity.


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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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 15

6

How do you qualify for a USDA loan after a Chapter 7 Bankruptcy

In many cases bankruptcies are not brought by financial mismanagement, but instead due to isolated circumstances which may have been out of that person’s control.

Depending on the situation, you may be able to qualify for a USDA loan after a Chapter 7 bankruptcy, but 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!

How do you qualify for a USDA loan after a Chapter 7 Bankruptcy

• USDA loan qualifying currently requires that a Chapter 7 bankruptcy be discharged for 3 years
• However, USDA guidelines also allow for the following possible exception:

qualify for a USDA loan after a Chapter 7 bankruptcy“An elapsed period of less than 2 years may be acceptable for a loan guarantee if the applicant can show the bankruptcy was caused by extenuating circumstances beyond their control and has since exhibited a documented ability to manage their financial affairs in a responsible manner for a reasonable period of time following discharge.”

• USDA loan qualifying after a Chapter 7 bankruptcy also will require the following:

“The lender must document the applicant’s current situation indicates the events that led to the bankruptcy are not likely to recur.

• Possible exception scenarios would evidence that the circumstances leading to the
credit problems were:
a. Temporary in nature
b. Beyond the applicant’s control; and
c. Resolved for 12 months prior to application
• These examples could include, but are not limited to:
o Temporary loss of job
o Delay or reduction in benefits
o Illness, or
o Dispute over payment for defective good

• Also acceptable for review, would be in cases when the new loan will significantly reduce the applicant’s housing expense and improve repayment ability by 50% of more

As you can see, it can be possible to qualify for a USDA loan after a Chapter 7 bankruptcy, but be prepared to document your case and the circumstances.

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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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

Jan 15

30

Can Gift Funds Be Used With A USDA Loan?

So, can gift funds be used with a USDA loan?

 

 
Customarily a buyer has 2 types of out-of-pocket expenses:

Any required Down Payment & Settlement Charges, otherwise known as closing costs.

USDA loans are 100% financing so they eliminate the need for a down payment, but buyer’s are still responsible for their closing costs. Also when it comes to UDSA loans, many think that closing costs are simply “rolled” into the loan and not an out-of-pocket cost.

Remember USDA loans permit for the ability to finance closing costs, but the appraised value must be higher than the sales price. Financing closing costs should be looked at as a potential benefit – NOT a guarantee.

In cases when there are funds due at closing, gift funds can be used with a usda loan provided the following:

  • gift funds can be used with usda loansAn eligible source of gift funds can be from a family member
  • Gift funds must be documented to have come directly from the donor
  • Gift Funds can be documented by:
  1. Evidence of deposit into the borrower’s personal account; or if at closing
  2. Verify amount received by the closing agent along with source of gift funds
  • Common gift documentation could include, but not limited to: wire transfer confirmations, bank statements, or cancelled checks

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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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

Jan 15

23

What credit score qualifies for a USDA loan?

Today’s video tip will cover what credit score qualifies for a USDA loan along with additional USDA qualifying credit guidelines.


What credit score qualifies for a USDA loan?



USDA Rural Home loans are unique with both the benefits they offer and their qualifying guidelines. With that being said, minimum qualifying standards must be met and part of that begins with what credit score qualifies for a USDA loan.

qualifying credit for USDA loansSo, what credit score qualifies for a USDA loan?

USDA guidelines, state that applicants with credit scores of 640 or greater meet the minimum credit reputation, however they further explain:

“A credit score in its self does not indicate that the applicant’s credit reputation is acceptable. 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.”

Automated Eligibility through the Guaranteed Underwriting System is possible with minimum scores of 640, while manual underwriting is available for scores below that mark.

When working with manual underwriting, not all lenders offer this service along and varying lenders can have their own minimum score criteria.

USDA Guidelines further advise:

“Loans with credit scores of 580 or below should not be approved.”

As I have mentioned before, remember that a specific credit score does not guarantee approval and minimum credit conditions will have to be met when determining eligibility.

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, it is a match that can open the door to homeownership.

USDA Blueprint for Success

If you are looking to purchase a home within the next 6 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


Sean Stephens

Metroplex Mortgage Services

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

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