Call to get Pre-Qualified: 800-806-9836 x280
USDA Loan Pro Logo
USDA Vendor Logo

Sagittis tempus lacus enim ac dui

Happy 4th of JulyFrom all of us at Metroplex we would like to wish you and your family a lovely 4th of July!

We hope you spend your 4th of July relaxing, appreciating our wonderful country, and lighting up your BBQ to grill the day away.

Barbecue and the 4th of July go hand in hand. Not only is it the most popular day of the year to grill, but approximately 150 million hot dogs and 700 million pounds of chicken are consumed today.

Here are 3  surprising BBQ facts:

  1. BBQing is not just for the summer. In fact, 70% of Americans own a grill or smoker.
  2. The longest BBQ lasted 80 hours and was a benefit for the Juvenile Diabetes Research Foundation. On that day, Jan Greeff cooked 1,000 hot dogs and 200 pieces of corn.
  3. There are actually 4 different types of pork ribs. Spare ribs, St. Louis-style ribs, country-style ribs, and baby-back ribs.

Lastly, we should all honor our Declaration of Independence on this special day and keep its important first sentence in mind…

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, liberty and the pursuit of Happiness.”

What are the USDA Loan Requirements for Individuals with Little to No Credit History?

USDA loan requirements with little to no credit in Texas, Tennessee, Florida and Alabama

There are USDA loan requirements for those that have little to no credit history to qualify for a USDA loan.

If a homebuyer does not have any established credit history, USDA qualifications do allow the ability to utilize certain non-traditional credit accounts. This will help increase USDA loan qualifying flexibility.

Today’s short video will walk you through the USDA loan requirements for individuals with limited credit history.

If you have not already done so, be sure to download our FREE USDA Blueprint for Success. This educational resource is designed to help walk you through the USDA process step-by-step and is designed for homebuyers and realtors alike.

USDA Credit Score Requirements

According to the USDA credit score guidelines, “A credit score is a statistical number that evaluates an applicant’s creditworthiness based on their credit history. The credit score considers payment history, amounts owed, percentage of credit used, length of credit history, types of credit and newly acquired credit.”

While USDA loans do not have a minimum published credit score, it utilizes the Guaranteed Underwriting System, or “GUS”, to determine the acceptable credit score for underwriting recommendations of an accept, refer, and refer with caution.

  • Accept response: For loans that receive an accept response, there is no credit score validation needed. Your credit profile could only have one credit score reported and provided you received a GUS accept, then no further validation is needed.
  • Refer or Refer with Caution responses: If you receive a GUS response of refer, refer with caution, or for manually underwritten loan files, USDA guidelines states that the “applicant must have two tradelines on the credit report that have been/were/are open for 12 months based on the date the account was opened as stated on the credit report. A validated score does not indicate the applicant has an acceptable credit history. A validated score confirms that one applicant has an eligible minimum credit history.”

Note: Secured and unsecured loans, revolving accounts, credit cards, collections, and even charged-off accounts may be used to validate credit scores. If your credit report does not support the minimum accounts required by USDA, then that is when you will use non-traditional or alternative credit history.

What is the Difference between Traditional and Non-Traditional/Alternative Credit?

Traditional versus Non-Traditional Credit in Texas, Tennessee, Florida and AlabamaTraditional credit refers to companies that report their accounts to credit bureaus such as Experian, TransUnion, or Equifax. These companies may include your auto loan and credit card companies.

Non-traditional credit, or alternative credit history, is just the opposite of traditional. These companies typically do not report to a credit bureau and may include your electric bill, water bill, phone bill, or rental payments through a management company or private landlord.

It is possible to meet the USDA qualifications with little to no credit history and we understand that the qualification requirements and process may seem difficult or overwhelming. Metroplex Mortgage Services is a USDA approved lender and can help you maximize your potential of this program and walk you through the USDA requirements with little to no credit history.

 

As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!

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

 Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with this link.

Usda Blueprint for Success

How long does it take to qualify for a USDA loan as a recent graduate?

USDA Loan as a recent graduate in Tennessee, Florida, Alabama and TexasIf you have recently graduated, you may be wondering how long it takes to qualify for a USDA loan as a recent graduate. Unfortunately, we are seeing an influx of lenders issuing qualification letters that are not worth the paper they are written on because they do not understand the guidelines when it comes to USDA loans. The income eligibility guidelines for USDA loans require additional review of unique scenarios which include previous schooling that resulted in a recent graduate.

With the increasing number of students who have recently graduated from college, a technical school, or any other type of education course, it’s important to understand how you can qualify for a USDA no down payment loan program with a limited employment history.

Be sure to download our FREE Comparison Chart that compares USDA, VA, FHA, and Conventional loans in one convenient side-by-side chart.

Also remember to take advantage of our Second Chance Service. This free resource allows you to receive an expert second opinion which can be a great for recent loan denials or guidance on how to make the most out of your home loan qualification.

What are USDA Home Loan qualification requirements for recent graduates?

Where certain loan programs may require a two-year work history, USDA guidelines can be flexible when trying to qualify withHow long does it take to qualify for a USDA loan as a recent graduate base employment wages (hourly or salary). USDA qualifying guidelines only require that one year of income be received at time of loan application.

However, this does not require a buyer be with the same employer for the entire year! Remember, USDA guidelines state that the “one year of required history may be met through a combination of employers, education, or military service” and the one-year history “does not have to be with the same or current employer.”

This is truly great news for those recent graduates because USDA guidelines will permit their prior education to be included as part of the one-year history requirement!

Please note that today’s topic dealt specifically with those USDA applicants who are employed and not those that are considered self-employed. If you are self-employed or have been denied for a USDA loan due to employment history, please contact my office today so we can begin to review your loan scenario.

Wow! I realize that we covered a lot today, but remember that we are staying on top of the USDA qualifying process and are here to help you navigate the steps from initial USDA loan qualification to closing. Simply 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!

As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!

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

 Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with the link below:

Usda Blueprint for Success

USDA Guidelines on Student Loans

USDA Guidelines on Student Loans in Texas, Tennessee, Florida and Alabama

Student loan debt can have a major impact on qualifying for a mortgage. Understanding the USDA guidelines on student loans can mean the difference between homeownership and a missed opportunity.

Don’t forget to download our USDA Blueprint for Success with the link below.  This free guide is designed to walk you through the USDA loan process and is a great resource for homebuyers and Realtors alike.

 

Student Loan Debt

USDA Guidelines in Florida, Texas, Alabama, and Tennessee

Qualifying to buy a home with student loan debt is becoming a bigger challenge, and it is not just an issue for first-time home buyers.

Recent data shows that a staggering 42.8 million borrowers have over $1.64 trillion in student loan debt. Knowing the guidelines surrounding student loan debt can open opportunities for a USDA loan.

The USDA student loan guidelines have improved over the years by reducing the amount needed for qualifying on specific student loans. This will help increase your overall budget and price range.

 

Fixed-Rate Student Loans

A fixed-rate loan has an interest rate that remains the same for the life of the loan.

For fixed payment loans, “A permanent amortized, fixed payment may be used in the debt ratio when the lender retains documentation to verify the payment is fixed, the interest rate is fixed, and the repayment term is fixed. The fixed payment will fully amortize/pay in full the debt at the end of the term.”

Non-Fixed Rate Student Loans

USDA Student Loan Debt Qualification

A non-fixed rate loan has a variable interest rate that varies as market interest rates change.

For non-fixed loans, “payments for deferred loans, Income-Based Repayment (IBR), Income-Contingent (IC), Graduated, Adjustable, and other types of repayment agreements which are not fixed must use the greater of the following:

  1. One half (.50) percent of the outstanding loan balance documented on the credit report or creditor verification, or
  2. The current documented payment under the approved repayment plan with the creditor.”

Unlike the previous USDA guidelines which required taking a full one percent (1%) of the balance on non-fixed payment loans, current USDA student loan guidelines have improved by reducing the minimum payment to one-half percent (.50%) of the balance.

Additional USDA Student Loan Guidelines

  • Student loans in the applicant’s name alone but paid by another party remain the legal responsibility of the applicant. The applicable payment must be included in the monthly debts.
  • Student loans in a “forgiveness” plan remain the legal responsibility of the applicant until they are released of liability from the creditor. The applicable payment must be included in the monthly debts

As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!

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

 Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with the link below:

Usda Blueprint for Success

USDA Loan Limits in Texas, Florida, Alabama and TennesseeWhat are USDA Loan Limits?

Mortgage loan limits have been on the rise lately, but loan limits are not the same across each program. While VA home loans, FHA, and Conventional loan programs each have their own limits, there are different qualifying parameters when it comes to USDA loan limits.

A mortgage loan limit is the maximum amount a home buyer can borrow under a specific mortgage program. A loan limit applies to the loan amount and not the sale price.

In today’s short video we will break down the details so you can separate USDA loan limit fact from friction.

To help you stay organized, we’ve created a FREE Loan Comparison Chart for you to download. It compares each loan programs side-by-side and is contained in one simple chart. Download it now!

What are USDA Loan Limits?

USDA Loans Have NO Loan Limits

It is true that there are NO USDA loan limits with the USDA Guaranteed Loan Program.  Yes! You read that right. Since there is no maximum sales price for a USDA loan, this means there is also NO maximum mortgage loan limit!

An assumption that many Realtors and homebuyer have regarding USDA loans is that they are only available for small loan sizes, which is simply not true. Since USDA loans do not have loan limits, they make a great alternative to conventional and FHA loans, which can both have larger monthly payments due to higher mortgage insurance costs.

USDA vs. FHA – How is FHA Mortgage Insurance Calculated?

While a USDA loan does not technically have mortgage insurance, it still has what is called an annual fee that is calculated at .35% of the loan amount. Further, although this fee is for the life of the loan term, because the USDA Monthly Premium is over 2X lower than the FHA Mortgage Insurance Premium (“MIP”) this results in significantly lower borrowing costs.

Additionally, a USDA home loan has a one-time financed Guarantee Fee of 1%, which is also lower than the 1.75% FHA Upfront Mortgage Insurance Premium (UFMIP).

Additionally, it requires a monthly mortgage insurance premium (MIP) of .85% of your loan amount which last for the entire mortgage term when using less than 10% for down payment.

Example Scenario:

USDA and FHA Loan Comparison

USDA Income Limits

USDA loans also have healthy income limits which was recently updated in May of 2021. USDA income limits are based on family household sizes and the county where the property is location. Thus, while USDA does not have a loan limit, the maximum loan size will be based on the buyer’s ability to repay the loan along with the applicable USDA income limits.

 

The USDA Loan Program Offers High Flexibility Due to the Following:

  • 100% financing;
  • Ability to finance closing costs;
  • More flexible credit guidelines than conventional loans;
  • NO loan limits.

 

As a USDA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!

 

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

Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with the link below:

 

FREE USDA home loan Guide

VA Home Loans in Florida, Texas, Tennessee, and AlabamaWhat are the differences between USDA and VA Home Loans?

There are three important differences between USDA and VA home loans. As many of us know, both USDA and VA loans offer no down payment financing, which makes them great options for homebuyers. However, they each have unique features and eligibility requirements and today’s post will discuss three key factors that illustrate the differences between USDA and VA home loans.

To help you stay organized and understand the unique differences, we created a FREE Loan Comparison Chart for you to download. This side-by-side comparison sheet compares the differences between USDA loans, VA home loans, FHA, and Conventional loan programs. Be sure to download it now.

USDA and VA Loans Compared

Both USDA and VA home loans allow for NO down payment! They are also known for their flexible credit qualifying, manual underwriting availability, and shortened time frames for qualifying after recent bankruptcies, foreclosures, and short sales.

Differences between USDA and VA home loans in Texas, Florida, Tennessee and Alabama

Key Differences Include:

  1. Eligibility Requirements: USDA guidelines state that applicants must meet household income limits as outlined per county and the property must be located within a USDA eligible area.On the other hand, VA home loans are only available to eligible military service members and, in some cases, surviving spouses.Both USDA and VA home loans are very different from FHA and Conventional loan qualifying guidelines.
  2. Maximum Loan Amount: There is NO maximum USDA loan amount, which may be the biggest best kept secret. The USDA maximum loan amount is calculated on the applicant’s ability to qualify.For a VA home loan, the basic entitlement for each eligible Veteran is $36,000 and allows for loan amounts up to $144,000. For loans above the given $144,000, a veteran may utilize a “bonus entitlement” that will allow them to increase the amount over $144,000.Additionally, the Blue Water Navy Vietnam Veterans Act of 2019, has helped expand maximum guaranty amounts under the VA program. As a result, there are NO maximum loan amount under the VA program where a veteran has full entitlement available!
  3. Mortgage Insurance: USDA loans do not require private mortgage insurance (PMG), but they do have an annual fee. This fee is calculated monthly and will be included with your mortgage payment. USDA loans also require a one-time, 1% Guarantee fee that is collected at time of closing and is permitted to be financed into the loan.While VA loans do not have PMI or an annual fee, they do require a VA funding fee that ranges from 0% – 3.6% and is calculated based on the type of service, previous usage, purchase or refinance, and down payment. This is also a one-time fee that is collected at closing or financed into the loan.Please note that the VA funding fee may be waived for certain Veterans that have service-connected disability and for the surviving spouse of a Veteran who meets certain eligibility requirements.

USDA Approved Lender - VA Approved Lender in Texas, Florida. Tennessee and Alabama

Benefits of working with a USDA and VA Approved Lender

Metroplex Mortgage Services is a USDA and VA approved lender and we take pride in serving our rural and military communities. As a result of our specific USDA and VA loan experience, we have specific loan systems in place that assist our clients through the qualification process and allow our team to assist with important items, such as:

  • VA Certificate of Eligibility
  • Calculating the VA Entitlement
  • Reviewing Eligible USDA Areas and Property Types
  • Determining USDA Income Eligibility
  • Upfront Review for those who are Self Employed

As a USDA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our USDA experience and expertise go to work for you!

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

Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with the link below:

 

USDA Blueprint for Success

USDA Single Family Housing Guaranteed Loans in Florida, Texas, Tennessee, & TennesseeWhat are the differences between the USDA Direct and USDA Single Family Housing Guaranteed Loan Programs?

There are differences between the USDA direct and USDA single family housing guaranteed loan programs. USDA Rural Development offers single family housing under both 502 Direct Loans and the USDA Single Family Housing Guaranteed Loan Program. Thus, it is common to receive questions from homebuyers and realtors regarding the differences between the USDA Direct and the USDA Single Family Housing Guaranteed Loan Program as these are two different, yet similar programs.

If you have not done so yet, be sure to download our FREE USDA Blueprint for Success. This educational resource is designed to help walk you through the USDA process step-by-step and is designed for homebuyers and realtors alike.

What are differences between the USDA Direct and USDA Single Family Housing Guaranteed Programs?

USDA Single Family Housing Guaranteed Home Loan vs. USDA Direct Loan Program

What are differences between the USDA Direct and USDA Single Family Housing Guaranteed Programs?

The USDA Single Family Housing Guaranteed Loan Program and the USDA Direct Loan Program both require that the home being purchased is a primary residence. However, there are four key differences between each program.

Differences between the USDA Direct and USDA Single Family Housing Guaranteed Loan Program in Florida, Texas, Tennessee, and Alabama

Key Differences Include:

  • Income Limits: While income limits do apply under either program, the Guaranteed Loan Program has higher family household income limits when compared to the Direct Loan program, which has lower income limits.
  • Term Length: Guaranteed loans offer a 30-year term, while the standard term for a Direct loan is 33 years, plus other terms could apply based on varying situations.
  • In-Ground Pools: The Single-Family Housing Guaranteed Loan Program allows for in-ground pools, while the Direct loan program does not permit in-ground swimming pools.
  • Funding: The biggest difference between these two loan programs is that Guaranteed loans are not subsidized and instead are funded by approved USDA lenders such as Metroplex Mortgage Services who handles the underwriting review, approval of the file, and loan closing. On the other hand, Direct Loans are subsidized and funded by the Government. They are then serviced by USDA Rural Development’s customer service center.

USDA Approved Lender in Florida, Texas, Tennessee, and Alabama.

Metroplex Mortgage Services is a proud USDA Approved Lender!

Remember, our USDA Approved Lender status allows us to control the USDA Rural Development Single Family Housing Loan qualification process from pre-qualification to closing with the added benefit of in-house underwriting and one easy point of contact.

As a USDA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our USDA experience and expertise go to work for you!

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

Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with the link below:

 

USDA Blueprint for Success

Share
audemedia

Flats dove grey black Jil Sander Vasari gold collar. Skirt chambray Maison Martin Margiela sneaker Furla ankle boots Cara D. Casio Hermès. Denim tucked t-shirt leather tote crop neutral relaxed Topshop oversized clutch.

Leave a Reply

Your email address will not be published. Required fields are marked *

back to top