Jun 15

26

Are Closing Costs Included With A USDA Loan?

“Will my closing costs be included with a USDA loan?”

This is a very common question that we receive at Metroplex Mortgage Services, and in today’s video tip we will cover the details about how a USDA loan can offer flexibility with closing costs and help reduce out of pocket expenses.

USDA loans offer the benefit of 100% financing, or no Down Payment.  However, that should not be confused with No Money out of pocket.

When you are buying a home, there are customarily 2 sets of out of pocket expenses:  Your Down payment and Settlement Charges otherwise known as closing costs.

With 100% financing, USDA loans eliminate the need for a down payment, but that does not have anything to do with closing costs.

USDA loans provide for the ability to finance closing costs into the loan.  However,  In order to finance closing costs, the home must appraiser for more than the purchase price you have agreed to.  This feature is unique to USDA loans, and not available with conventional, FHA, or VA programs.

Examples of what charges could be financed with a USDA home loan are:

  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.

For example, if your sales price is $100,000 and the appraiser determined the value of the home at $103,000, then the loan amount could increase up to the appraised value and include $3,000 of out of pocket settlement charges.

The one exception to this rule is for the 2% USDA Guarantee fee, which can always be financed into the loan amount regardless of the appraisal.

As always, the buyer can contribute their own funds at closing or if possible can also negotiate for the seller to pay up to 6% of the sales price towards a buyer’s settlement charges.

When trying to finance closing costs, it is important to remember that there is no guarantee of what the home will appraiser for so be sure not to put all of your eggs in one basket and hope for the best.

If you do need assistance with closing costs, it is critical to address this upfront with both your mortgage professional and Realtor – before a sales contract has been written.

As a summary, USDA loans do not automatically include customary out of pocket settlement charges, but through a combination of the buyer’s own funds, possible seller concession, and the ability to finance closing costs it allows for flexibility when budgeting for out of pocket expenses.

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, USDA Loan CLosing Costs

Jun 15

19

Is your lender working with the USDA “GUS” Underwriting System?

Can the USDA “GUS” Underwriting System help you qualify for a USDA home loan?

Whether you are a Home Buyer or a Realtor working with USDA clients, having a lender that properly utilizes “GUS” has a tremendous impact with USDA loan qualifying. This short video tip will provide the necessary details to help give you the advantage when qualifying for a USDA home loan.

And don’t forget to join our USDA Real Estate Network Groups on LinkedIN and Facebook by clicking below. Members can use these groups to market and post new listings, ask questions, and connect with the UDSA Real Estate community which include buyers and agents.

USDA Real Estate Network – LinkedIn Real  USDA Estate Network – Facebook


The Guaranteed Underwriting System also known as “GUS”, was created by USDA Rural Development to serve as their automated underwriting system (AUS). The system’s purpose is to help lenders process Rural Development Guaranteed loan applications.

Authorized lenders can utilize GUS to submit:

- An application for eligibility determination

- Pre qualification, or…

- Final submissions to Rural Development

The Guaranteed Underwriting System is a rules based decision engine and a modified version of the FHA TOTAL scorecard.

With these combined functionalities GUS can indicate recommended levels of underwriting and documentation to determine a USDA loan’s eligibility for the Single Family Housing Guaranteed Loan Program (SFHGLP).

After the loan data is entered, GUS then delivers a recommendation based on a risk evaluation analysis, which can be as follows:

  • Accept
  • Refer, or
  • Refer with Caution.

Important factors that GUS will determine are:

  • Eligibility for:
  1. Income
  2. Credit, or
  3. Property Location
  • Accepted qualifying ratios (For example debt ratio waiver requests are NOT required for GUS Accept files)

Please note, that as with any Automated underwriting system, the findings are only as good as the data entered. This underscores the importance of accuracy at this stage of the process, because although GUS is not a final underwriting stamp of approval, it does provide a roadmap for eligibility and what is needed for approval.

As a USDA approved lender, we utilize the GUS system and are able to maximize the benefits it provides to help both qualify homebuyers and process USDA loans.

We realize that qualifying for a USDA loan may seem overwhelming, but when you are paired with a lender who can maximize the potential of this unique program, it is a match that can help open the door to home ownership.

My team is ready to help with your next pre qualification, or if you happen to need an expert 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 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 Advantages, USDA Credit Qualifying, USDA FAQs

Jun 15

12

Will your credit score qualify for a USDA home loan?

Welcome back everyone, this is Sean Stephens here again with Metroplex Mortgage Services & another USDA Loan Pro video quick tip.

How many credit scores do you need to qualify for a USDA home loan?

When qualifying for a mortgage, everybody knows that your credit scores are critical, but depending on your credit a certain bureau may not even be reporting a score!

In today’s short video we will discuss the USDA qualifying credit requirements along with what solutions are available when credit scores are not reporting.

And don’t forget to join our USDA Real Estate Network Groups on LinkedIN and Facebook by clicking below. Members can use these groups to market and post new listings, ask questions, and connect with the UDSA Real Estate community which include buyers and agents.

USDA Real Estate Network – LinkedIn     Real Estate Network – Facebook

It is important to remember that a certain credit score does not guarantee approval, but achieving a minimum score does open up the range of potential eligible loan programs with higher scores and stronger credit profiles contributing factors. USDA has the following credit score guidance:USDA Florida Credit Qualifications

  1. 640 and above required for automated underwriting eligibility
  2. Manual underwriting guidelines for scores of 581 and above provided a documented credit waiver is submitted when applicable.
  3. Loans with credit scores of 580 or below should not be approved

Also remember that depending on what credit is actually reporting, not all credit bureaus may even be generating a score.  In this case, USDA guidelines state the following:

  1. If the applicant’s credit report has three scores, the middle score should be used as the representative score.
  2. If the applicant has two scores, the lower of the two should be used as the representative score.
  3. If the applicant has a repeating score, that score will be utilized.
  4. If the applicant has one score, a NTMCR must be developed for manually underwritten loans.

Non-Traditional Mortgage Credit Report (also known as Alternative Credit) would consist of verification for accounts such as water, electricity, phone, cable, etc. for at least the past 12 months with an on-time payment history.

While USDA loans offer high credit qualifying flexibility, a minimum credit reputation is required in order to determine eligibility.

Don’t let the details overwhelm you because that is what we are here for! As a USDA approved lender, we can walk you through the qualifying steps and explain the details from A to Z.

Whether it is the doctor or a mechanic, 2nd opinions are always great, and that goes the same with mortgages which is why we have a free 2nd opinion service dedicated to these requests.

800-806-9836 Ext. 280USDA Texas Credit Qualifications
SeanS@MPLX.org

 Whether you are under contract or in the pre-qualification stage, just call or email with your scenario and take advantage of our lending expertise.

I want everyone to make it a great day, and look forward to seeing you right here for our next video quick tip.

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

Jun 15

5

Can a Credit Dispute Affect USDA Loan Qualifying?

Welcome back everyone, this is Sean Stephens here again with Metroplex Mortgage Services & another USDA Loan Pro video quick tip.

If you dispute an account on your credit, will that affect USDA loan qualifying?

Disputed accounts can have a major impact on USDA loan eligibility and can also cause a high level of confusion with the home buying process.

In today’s short video we will cover how a disputed account can affect your USDA application, along with potential solutions to help keep your transactions headed to the closing table.

Before we get started, don’t forget to download our USDA Blueprint for success with the link below. This is a great educational resource for the home buying process and designed for both Home Buyers and Realtors.

USDA Guidelines for disputed accounts

USDA qualifying guidelines require that when an applicant’s credit report indicates an account (tradeline) or public record has been disputed, a GUS underwriting recommendation of “Accept” may need to be downgraded by the lender to a “Refer” which would then require more stringent manual underwriting guidelines.

However, a downgrade is not required if any of the following conditions are met in regards to the disputed item listed on the credit report:

1. The account has a zero dollar balance
2. The account is marked “Paid in full” or “resolved”
3. The account has a balance owed of less than $500 and is more than 24 months old

In this anonymous case study for a loan that we successfully closed, they had been previously denied by another lender for a disputed account. However, as you can see this should not have been the case because the disputed account has a zero balance and is less than $500 plus greater than 24 months old.

usda loan fl

This unique portion of the guideline not only causes confusion for the applicant, but as you can see, can also cause confusion for lenders who do not regularly work with the USDA program.

As always, the borrower also has the ability to have the dispute removed and then we can process a new updated credit report for underwriting review.

If you want to qualify for a mortgage but have questions regarding disputed accounts, my team is experienced with this scenario and we can help walk you through the steps on what can be possible, along with how to get the dispute removed if needed.

USDA loans are in the blood of my entire team. As an approved USDA lender Metroplex Mortgage Services is proud to serve our rural communities.

USDA loan qualifying

800-806-9836 Ext. 280
SeanS@MPLX.org

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions

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

May 15

29

How Rapid Rescoring Can Help Your Credit Score Qualify for a Loan

Welcome back everyone, this is Sean Stephens here again with Metroplex Mortgage Services & another Loan Pro video quick tip.

Were you denied for a mortgage because your credit score just missed? Rapid rescoring can help.

While many think this is end of the road, Rapid Rescoring is a powerful tool that can help towards becoming “mortgage ready”– and may be a solution for either USDA, VA, FHA or Conventional loans

Before we get started, don’t forget about our free 2nd opinion service. This can be used for both existing transactions and pre-qualifications, and is a great way to get an expert 2nd opinion about your mortgage qualifying.

Rapid Credit Rescoring

Rapid Rescoring also known as Credit Rescoring, is a great tool which allows for us to identify specific accounts and help maximize the built in potential of a credit score. So what are the steps?

Step One: The credit report is analyzed for any potential improvements through both a manual review and automated credit score simulation software. We can then determine how much of a potential increase in score can be achieved and what actions need to occur.

Step Two: Once the suggested actions have been taken, the customer then calls their credit card or finance company and requests a balance letter or other account documentation. Once this has been received, wqualifying for usda loan fle can then start the final step.

Step Three: We then submit the documentation to our credit vendor who works directly with the credit bureaus to update the account. Once the updates are complete, we are given notification to reprocess a new credit report. The process can take as little as 3-5 business days to complete after receipt of the creditor documentation.

Here are a few helpful reminders about rapid rescoring:

- There is NO additional charge for this service
- This is NOT credit repair and we are NOT a credit repair company
- Results are not guaranteed & can vary based on differences within each credit report
- Works best when paying down credit card account balances, but not limited to that solely
- Depending on the number of accounts, prepare for longer processing times
This can be a great solution for:

• Upfront Pre-Qualifications
• Current transactions already under contract, but are experiencing qualifying problems
• USDA, VA, FHA, or Conventional Loans

rapid rescoring flWe are known for our Government Loan Experience and high customer service levels. As an approved USDA and VA lender Metroplex Mortgage Services is proud to serve both our military and rural communities.

Just call or email if you have any qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions

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

May 15

22

Memorial Day: Remembering Our Fallen

While Memorial Day often evokes thoughts of cookouts and great sales, it’s important to reflect on, and respect all those who have lost their lives in service to our country. Falling on the last Monday of every May, Memorial Day became a Federal Holiday in 1971 and is celebrated by loved ones and families that visit graves, memorials, or simply remember those they have lost.

In todays short video, courtesy of History.com, we learn about Memorial Day and how it came to be.

Here are some facts about Memorial day you may not know about (courtesy of History.com):

  • It was originally known as Decoration Day
  • It is believed to have started in towns during the Civil War, their residents decorating graves with flowers and reciting prayers
  • It is often regarded as marking the beginning of summer
  • There is a national moment of silence every Memorial Day at 3:00PM local time
  • Many Southern states honored their dead on separate days from the rest of the country until after WWI

memorial day 2015Even though the Civil War saw more American casualties than any other U.S. conflict, people gather every year to honor not only their fallen, but opposition as well, a tradition that has continued since the late 1800’s.

We here at Metroplex Mortgage Services will be closed on Monday in observance of Memorial Day and all those who paid the ultimate price for the freedom of America. We ask that you join us at 3:00PM local time in a moment of silence in remembrance.

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

May 15

15

Did You Know That There Are NO USDA Loan Limits?

Welcome back everyone. Sean Stephens here again with Metroplex Mortgage Services & another USDA Loan Pro video quick tip.

Did you know that there are NO USDA loan limits?

Yes, that is correct! There are NO loan limits with the USDA Guaranteed Loan Program.

Today’s video is great for any Realtor or Homebuyer looking to expand their home search and open up a wider range of properties to consider.

Remember that we are known for our USDA experience, so please keep us in mind for your next referral, new scenario, or any file that may just need an expert 2nd opinion.

USDA Loans have NO Loan Limits

Many in the Real Estate community automatically assume that USDA loans are only available for smaller loan sizes, but that is simply not true.

Because USDA loans do not have loan limits, it can be a great alternative to conventional and FHA loans, which both can have potentially larger monthly payments due to higher mortgage insurance costs.

usda loan limitWhile USDA loans do not have loan size restrictions, they do have healthy income limits based on family household sizes, which were recently increased for the majority of counties. USDA qualifying will be based on the buyer’s ability to repay the loan.

USDA loans can help open up additional property types such as homes located in subdivisions, gated communities, and townhomes, provided they are in a USDA eligible area.

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 Loan Limits!

While many may offer the USDA program, it is important to find out who has the
necessary experience to navigate the USDA loan approval process successfully.

USDA loans are in the blood of my entire team. As an approved USDA lender Metroplex Mortgage Services is proud to serve our rual communities.usda loan limit fl

800-806-9836 Ext. 280
SeanS@MPLX.org

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions

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

May 15

8

How Long Does it Take to Process a USDA Loan?

Welcome back everyone, Sean Stephens here again with Metroplex Mortgage Services & another USDA Loan Pro video quick tip.

How long does it take to process a USDA loan?

This is a question that I receive on a daily basis, and although the answer can vary from state to state, how the file is prepared and processed has a major impact on timing.

In today’s short video, I will share with you the specific systems we have in place to process USDA loans from pre-qualification through closing. This is a must see video for any Realtor or Home Buyer involved with a USDA loan approval. Did you know that, when possible, most of my customers prefer the option of scheduling a call back after 5:00? We have found that this is the most convenient time and just another service we offer to help expedite the process and keep transactions on schedule.

How long does it take to process a USDA loan?usda loan process fl

As a USDA Approved Lender, we have the ability to work directly with Realtors, Homebuyers, and the USDA field offices when submitting the file for their approval

Many banks, lenders, or credit unions are not USDA approved, therefore they must submit to a 3rd party UDSA lender to handle the approval process.

This bring to mind the old saying “too many cooks in the kitchen”

Being a USDA loan program approved lender provides us the ability to handle the loan process from A to Z with the following:

• GUS Underwriting System: As an approved USDA Lender, Metroplex Mortgage Services has access to the “GUS” Underwriting system. This is a great tool during the pre-qualification process to help determine the all important price range and budget.
• On site underwriting and processing allows for direct communication with the consumer and at the USDA level. For example, when there is a complicated loan and questions arise, we can respond quickly with further explanation or documentation as needed to the USDA office.
• The ability to prioritize processing in order to submit the loan to USDA.
• Are you working with an actual USDA Approved Lender – here is a link to find out:

SFHGLD Approved Lenders List

process a usda loan

In Summary, while many may offer the USDA program, it is important to find out who has the required experience to help navigate the USDA loan approval process successfully. It may sound funny, but we truly eat, breathe, and sleep USDA Loans each and every day because this is a program that is there to benefit our rural communities.

800-806-9836 Ext. 280
SeanS@MPLX.org

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions

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

May 15

1

Can Authorized User Accounts impact your USDA loan approval?

Welcome back everyone, Sean Stephens here again with Metroplex Mortgage Services and another USDA Loan Pro video quick tip.

Is an authorized user report on your credit affecting your USDA loan approval?

While credit scores are important to opening potential program options, the entire credit profile must be taken into consideration for USDA loan approval. In today’s video we will pinpoint a specific part of USDA loan eligibility and review how Authorized User accounts can impact the eligibility process and your loan approval. Before we get started, don’t forget to take advantage of our free USDA 2nd opinion service. This is great for both pre-qualifications and existing transactions who are looking for an expert 2nd opinion.

How can Authorized User Accounts affect USDA qualifying?

A Credit Card Authorized User is “A person who has permission to use and/or carry another person’s credit card, but isn’t legally responsible for paying the bill.” – (Investopedia) An example of an Authorized User could be a dependent that is listed on the account of a parent. They are able to use that account, but are not legally liable for any balance owed. USDA Loans have specific guidelines with regards to authorized user accounts, the overall goal being to obtain an accurate reflection of the applicant’s credit history. In cases where an applicant has authorized user account(s) listed on their credit report, the following will not require a manual downgrade:

*Another borrower on the application owns the account in question
*Owner of the trade line is the applicant’s spouse
*Evidence the applicant has been making payments on the account for the last 12 months

USDA Loans and Authorized User Accounts FloridaRemember, when receiving an Accept response through the GUS underwriting system it allows for streamlined processing with Automated Underwriting Guidelines. However, if any of these are not able to be met, then the loan file will be downgraded and require the need to process under USDA manual underwriting guidelines which is a more intensive review of the qualifying process. If you have a USDA loan in progress and are experiencing an issue due to an authorized user account, contact my team today so we can review and determine what options are available to secure your USDA loan approval. Remember, not all lenders have experience with processing and closing USDA loans. I see this each and every day on the 2nd opinions that come across my desk. 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.

usda loan approval

800-806-9836 Ext. 280 SeanS@MPLX.org

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions 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.

Comments

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Posted in USDA FAQs

Apr 15

24

Can a USDA Credit Waiver help you qualify with credit scores below 640?

How can you qualify for a USDA loan with credit scores under 640?

Welcome back everyone, Sean Stephens here again with Metroplex Mortgage Services and another USDA Loan Pro Video Quick Tip.

* Who can qualify for a USDA Credit Waiver?
* How can a Credit Waiver help you qualify for a USDA Loan?
* What compensating factors are considered with a USDA home loan credit waiver?

Today’s short video tip will cover these key questions and walk you through the steps about how a USDA credit waiver may be able to help when loans are not eligible for USDA automated underwriting approvals.

However, before we get started, don’t forget to download a copy of our USDA blueprint for success with the link below. This free guide will walk you through the USDA qualifying process step by step and is a great educational guide for anyone interested in a USDA home loan.

As a quick review, remember that many lenders only process USDA loans that received automated “Accept” eligibility findings received from the GUS underwriting system. As you will see, it is important to work with lenders that understand USDA manual underwriting guidelines and how to properly process a loan file and the documentation required. Because of this, understanding how a USDA credit waiver works is a critical part of approving a USDA Loan that may normally be denied.  USDA Credit Waiver eligibility for credit scores under 640

USDA Credit Waivers are applicable for manually underwritten loans with the following:

• Have received a GUS response of Refer or Refer with Caution, or
• Any loan that had to be manually downgraded for reasons such as:
o Lack of Established Traditional Credit History
o Authorized Users
o Disputed Accounts

USDA guidelines require applicants to have a credit history which indicates a reasonable ability and willingness to meet obligations as they become due.

Credit waivers will be needed on files which have been approved by underwriting, and have indicators of negative (adverse) credit.

In situations where the borrower(s) have negative credit, USDA Loan approval can still be achieved provided the lender can document the borrower’s intent for overall good credit. USDA approved lenders may document this via a USDA Credit Waiver which would need to support that the adverse credit was:

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

USDA Lenders may take into consideration mitigating circumstances which provide evidence to support the overall intent for good credit. However, lenders must conclude the applicant did not disregard their financial obligations. Possible examples of outside factors which may have contributed to the negative credit are, but not limited to:

• Dispute over defective goods
• Illness or medical conditionFlorida USDA Approved Lender
• Temporary loss of employment

As you can see, understanding how to process a successful USDA Credit Waiver can provide the opportunity of homeownership.

Remember, not all lenders have experience with processing and closing USDA loans. I see this each and every day on the 2nd opinions that come across my desk.

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.

800-806-9836 Ext. 280
SeanS@MPLX.org

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions

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


Sean Stephens

Metroplex Mortgage Services

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

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