Jun 16

24

What is a boomerang buyer?

How can a USDA loan help boomerang buyers?

Due to the recession and financial crisis, this has impacted homeowners through foreclosure, bankruptcy, and short sales.  In addition, many have also experienced loss of employment and a reduction in wages

In a recent TransUnion study, they estimated that over the next five years tBoomerang_Buyershere will be 2.2 million boomerang buyers re-entering the market. As these consumers rebound, a new opportunity awaits for these boomerang buyers to qualifying for a mortgage.

In the same survey, they calculated that 700,000 will be able to meet agency selling guidelines within the next five years (which means conventional loan guidelines).

However, we also know that USDA guidelines USDA loans and Boomerang Buyersoffer more flexibility with credit qualifying when compared to conventional loans, which could help speed up the waiting time and qualifying process for many prospective homebuyers.

Because of the importance of this topic, I wanted to remind everyone about how to qualify for a USDA loan after a foreclosure, bankruptcy, or short sale and have listed the links below with the critical details on how this can help boomerang buyers qualify for a USDA loan.

For your convenience, I also thought it would be a good idea to summarize these boomerang buyer loan qualifying points in one post so it is easier to forward and share with your database, colleagues, and friends to help spread the word that affordable homeownership is available!

And remember, as a USDA approved lender we offer the experience and expertise to give you the advantage.  Just simply call or email to discuss yours scenario and let us show you the “Metroplex Difference“!

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

And don’t forget to download our USDA Blueprint for success with the link below, it is designed to be a great resource for the homebuying process and to help walk you through the process step-by-step.

How do you qualify for a USDA loan after foreclosure?

In this short video, I will explain how it can be possible to qualify for a USDA loan after foreclosure and also discuss any possible USDA exceptions to their foreclosure waiting periods.  This is a must see tip for a boomerang buyer who had a previous foreclosure and is now trying to qualify for a USDA loan.

What are USDA and FHA waiting periods if a home was included in bankruptcy?

Do you know what are the waiting periods for USDA and FHA after a bankruptcy? What if there was a mortgage that was included in the previous bankruptcy?  These are critical facts to know for any boomerang buyer, and I will walk you through the steps on how to qualify for a USDA or FHA loan if a home was included in the bankruptcy.

How do you qualify for a USDA loan after a short sale?

Can you qualify for a USDA loan after a short sale?  While this is a common question that we receive, this video will go into details about recent updates and explain how a USDA loan may be able to help.

Credit for images used in this post are attributed to TransUnion

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 16

17

Did you know this about USDA loan underwriting guidelines?

How can USDA loan underwriting guidelines be fully maximized?

Whether you are a prospective homebuyer trying to qualify for a USDA loan or a Realtor working with USDA clients, accuracy and experience are both critical toward helping a buyer make the most of their USDA loan qualifying.

With that being said, it is  critical to work with a lender who understands USDA loan underwriting guidelines from front to back.  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 download our USDA Blueprint for success with the link below. This is a great resource for the real estate community and is designed to walk you through the USDA loan process step-by step.

Is your lender working with the USDA “GUS” Underwriting System?  If not, the full potential which can be found within the USDA loan underwriting guidelines may not be reached.Florida USDA loan underwriting guidelines

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.

USDA Approved 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 USDA loan eligibility factors that GUS will help to determine are:

  1. Income
  2. Credit, or
  3. Property Location

Additionally, accepted qualifying ratios within the GUS Underwriting System do not require a USDA Debt Ratio Waiver and assist in determining a borrower’s qualifying sales price and maximum USDA loan size.

Please note, that as with any Automated underwriting system, the findings are onFlorida USDA loan underwriting guidelinesly 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 road map for eligibility and  depending on the response received, additional USDA loan underwriting guidelines will be  followed by the lender.

Metroplex Mortgage Services is a USDA approved lender and we utilize the GUS system to help maximize efficiency, accuracy, and the benefits provided within USDA loan underwriting guidelines for potential homebuyers.

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 16

10

What are the USDA and FHA waiting periods if a home was included in bankruptcy?

USDA or FHA – Do you know what are the USDA and FHA waiting periods if a home was included in bankruptcy?

Last week we spoke about bankruptcy qualifying in general, but today’s topic is critical because it can cause a transaction to stop cold in its tracks.

If you had a prior mortgage included with bankruptcy, can you qualify for a USDA loan?

Thankfully USDA loans offer guidelines which can help in these situations and today’s video tip will cover the details you need to know.

Remember that you have my permission to forward and share this video and post on social media to help spread the news that affordable homeownership is available!

So, what are the USDA and FHA waiting periods if a home was included in bankruptcy?

In cases when there is a Chapter 7 Bankruptcy ,  which included a mortgage, USDA loan eligibility and 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.

What are the USDA and FHA waiting periods if a home was included in bankruptcy

Remember, on FHA loans there is 2 year bankruptcy discharge waiting 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 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.”

What are the USDA and FHA waiting periods if a home was included in bankruptcy

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

If you have any further questions about the USDA and FHA waiting periods if a home was included in bankruptcy, please call my team today so we can start to review.


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. We are the experts when it comes to the USDA loan program!


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 16

3

Boomerang Buyers: Can you qualify for a USDA loan after a Chapter 7 Bankruptcy?

Boomerang Buyers – Can you qualify for a USDA loan after a Chapter 7 Bankruptcy?

Boomerang Buyers are becoming a big portion of the homebuyer market and for many of those who previously had to file for a bankruptcy, they are now able to once again qualify and purchase a home.

Today’s video tip will shed light on how it can be possible to qualify for a USDA loan after a Chapter 7 bankruptcy, and as you will see, it may be quicker than you think!

If you have not yet done so, remember to take advantage of our free 2nd opinion service (SOS). This is great way to get an expert second opinion and can be used for both pre-qualifications and those already under contract.

Can you qualify for a USDA loan after a Chapter 7 Bankruptcy?boomerang buyers qualify for a USDA loan after a chapter 7 bankruptcy

From 2008 to year end 2014, there were over 8 million people that filed for a non-business related bankruptcy.

With that being said, many of these cases were not due to financial irresponsibility, but instead due to hardships faced which may have been outside of that person’s immediate control.

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:

“An elapsed period of less than 3 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 that:

“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:

boomerang buyers qualify for a USDA loan after a chapter 7 bankruptcy

  1. Temporary in nature
  2. Beyond the applicant’s control; and
  3. Resolved for 12 months prior to application

These examples could include, but are not limited to:

  • Temporary loss of job
  • Delay or reduction in benefits
  • Illness, or
  • Dispute over payment for defective good

Further, if the file receives an “Accept” through the GUS Automated Underwriting system, then no further documentation regarding the bankruptcy is required.

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 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 Credit Qualifying, USDA FAQs

May 16

20

How does a self-employed person qualify for a USDA loan?

How can a self-employed person qualify for a USDA loan?

Yes, it can be possible for a self-employed person to qualify for a USDA loan!

While it is true that this type of employment can cause difficulty with mortgage qualifying, today’s video will cover exactly how it can be possible for a self-employed person to qualify for a USDA loan.

Income qualifying for a USDA loan is critical, so if you have been previously denied, feel free to take advantage of our free 2nd opinion service. This is a great way to get a complimentary expert 2nd opinion and see if we can keep your financing on track.

Who is considered self-employed when qualifying for a USDA loan?

USDA monthly payments

  • 1099 Independent Contractors
  • W2 Employees who are 100% commissioned
  • Converting from a self-employed to a W2 employee can be possible!

How can someone that is self-employed prepare for USDA loan qualifying?

Minimum guidelines require that a self-employed borrower must have 2 years of self-employment history.

Common documents that will be needed for verification purposes include articles of incorporation when applicable and at least 2 years of both business and personal tax returns.

Also, keep in mind your tax returns should include all pages and schedules. If you filed an extension, make sure to have the signed extension available for underwriting.

Tax return documentation includes the following examples:self-employed person qualify for a USDA loan

  • Corporate tax returns
  • Schedule C (Sole Proprietor)
  • Partnership documents
  • Signed extension (if applicable)
  • Year-to-Date Profit & Loss
  • Year-to-Date Balance Sheet

While many banks and lenders may shy away from this type of loan due to the complex nature and experience that it requires, you can see that with proper analysis and documentation a self-employed person can qualify for a USDA loan!

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

USDA Blueprint for Success

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

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

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

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

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

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

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

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Posted in USDA Income Qualifying, USDA Underwriting Guidelines

May 16

13

How long does it take to close a USDA loan?

How long does it take to close a USDA loan?

Closing a USDA loan can be faster than you think! As you can imagine, this is a common question and the answer can range from lender to lender. In today’s video tip, I will show you what to look out for and how to reduce the time it takes to close a USDA loan.

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

How long does it take to close a USDA loan?Florida USDA Processing Time

As a USDA Approved Lender, we work directly with:

  • Realtors,
  • Homebuyers, and
  • USDA field offices

It is true that many banks, brokers, or credit unions are not USDA approved, which then requires an actual approved USDA mortgage lender to finalize and submit the file to USDA for review.

This just sounds like “too many cooks in the kitchen”!

Being a USDA  approved lender provides us the ability to reduce the amount of time it takes to close a USDA loan and handle the loan process from A to Z with the following benefits:

• Access to the USDA GUS Underwriting System
• On site USDA underwriting and processing
• Prioritize USDA specific documents
• Are you working with a USDA Approved Lender? – here is a link to find out:

USDA Approved Lender List

Texas USDA Processing Time

As a USDA approved lender, Metroplex Mortgage Services holds expertise with this unique program, and are able to walk both homebuyers and Realtors through the process step by step.

Through this, we are able to reduce the amount of time needed to process and close a USDA loan.

Simply call or email to discuss your scenario, start a new pre-qualification, or if you want to take advantage of our free 2nd opinion service for a transaction that is already in progress.

For future video tips subscribe for free on the right, post on Social Media and forward with the share button.

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 16

6

Did you know that USDA income limits were this high?

While many know that you can make too much money for a USDA loan, what they don’t realize is how high USDA income limits actually are!

As you will see in today’s video, the USDA income limits are surprisingly healthy which can be a great benefit for families that are trying to increase their maximum USDA sales price for qualifying.

Remember to download our USDA blueprint for success with this link below. I designed this free guide to help walk you through the USDA process and is perfect for both buyers and Realtors.

Do you know what the USDA income limits are?

As with any mortgage qualifying, income is important, but even more so with USDA loans because a key aspect of USDA Loan eligibility requires calculating if your household income exceeds the USDA income limits which are also known as “Annual Income”.

This figure takes into consideration all household members – NOT just those who qualify to be on the loan. Understanding what the applicable county USDA income limits are is a first step towards understanding eligibility, but also can help with determining your maximum USDA sales price.

As an example, we will take the USDA income limits for Florida and the Virgin Islands as an example to show how the recent USDA income limits have changed.

The previous Florida USDA income limits had a majority of counties capped at $74,750 for a family of 1-4 people and $98,650 for a 5 to 8 person household. Now, with the current USDA income limits, they are at $75,650 and $99,850 respectively.Florida USDA Income Limits

While that may not seem like a substantial increase, just remember that these USDA income limits apply even if you happen to be only $1 over the limit! You can only imagine how many homebuyers were close to qualifying, but now would have the opportunity to be eligible for a USDA loan.

Also, remember that USDA guidelines allow for household income deductions which can include the following common examples:Texas USDA Income Limits

• $480 for each dependent,
• Child care expenses when applicable
• Unreimbursed business expenses

When the USDA household income deductions are applied, this will reduce the annual income calculated which can then allow for income to be reduced below the maximum limit for that specific county.

As a USDA approved lender, Metroplex Mortgage Services holds expertise with this unique program, and because of this we are able to help you successfully navigate the process and take advantage of this powerful program.

Simply call or email to discuss your scenario, start a new USDA pre-qualification, or if you want to take advantage of our free 2nd opinion service for a USDA loan application that is already 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, USDA Income Qualifying

Apr 16

29

What is the maximum USDA loan amount?

Is there a maximum USDA loan amount?

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

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

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

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

maximum USDA loan amount

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

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

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

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

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

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

USDA Blueprint for Success

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

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

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

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

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

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

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

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Posted in USDA FAQs

Apr 16

22

Can you qualify for a USDA loan after a foreclosure?

Can you qualify for a USDA loan after a foreclosure?

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

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

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

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

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

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

How do you qualify for a USDA loan after a foreclosure

Can you qualify for a USDA Loan after a foreclosure?

USDA qualifying guidelines state the following regarding previous mortgage foreclosure:

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

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

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

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

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

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

How do you qualify for a USDA loan after a foreclosure

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

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

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


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

USDA Blueprint for Success

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

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

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

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

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

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

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

Comments

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Posted in USDA FAQs, USDA Loan After Bankruptcy

Apr 16

15

What can be done if your USDA loan is denied?

What can be done if your USDA loan is denied?

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

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

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

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

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

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

USDA loan denied

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

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

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

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

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

USDA Blueprint for Success

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

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

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

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

Questions? Contact Us Here.

Toll Free: (800) 806 – 9836 Ext. 280

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

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

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


Sean Stephens

Metroplex Mortgage Services

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

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USDA Loan Calculator

Use This Calculator To Help Stay Within Your Budget:

Purchase Price
Loan Term 30 Years
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Annual Insurance
Financing: 100%
Purchase Price with
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USDA Premium
Total Estimate

*Taxes and Insurance can vary from property to property.

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

Minimum credit conditions will apply on all loans.

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