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Happy 4th of JulyFrom all of us here at Metroplex we would like to wish you and your family an amazing 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.”

How do you qualify for a USDA Renovation and Repair Loan in Florida, Texas, Tennessee, and Alabama?

How do you qualify for a USDA renovation and repair loan? Can USDA home improvements be completed after closing in Florida, Texas, Tennessee, and Alabama? Can you include home repairs with a USDA loan?

USDA repair and renovation loan in Texas, Tennessee, Florida and AlabamaThe ability to include home repairs and renovations within a USDA No Down Payment Loan may one of the best kept secrets and one which can also make a truly big impact in the homebuying process!

With so many homebuyers looking for properties, having the flexibility to customize through a USDA renovation loan and include repairs into your loan for completion after closing, can be a real game changer when trying to maximize current housing inventory.

In today’s short video I am going to provide details on how to qualify for a USDA Renovation Loan and explain the different USDA home repair options available.

Now, before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with the link below. This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.

How do you qualify for a USDA Renovation and Repair Loan in Florida, Texas, Tennessee, and Alabama?

As a starting point, USDA No Down Payment Loans offer high flexibility when financing renovations and repairs after closing with the following options being available:

  • $10,000 repair escrow holdback for certain eligible items. (This is more limited in scope then the other options.)
  • Up to $35,000 for non-structural repairs where the home must be considered habitable at time of closing.
  • Structural repairs or improvements exceeding $35,000 for properties needing more extensive rehabilitation.

USDA Repair Escrow Holdback

While each has different eligibility criteria, let’s begin by reviewing the USDA Repair Escrow holdback feature.How do you qualify for a USDA Renovation and Repair Loan in Florida, Texas, Tennessee, and Alabama

Just as the name says, USDA loans allow for certain repairs to be placed into escrow and held back for the work to be done after closing subject to the following criteria:

  • Home must be habitable while the repair work is being completed;
  • The repair work does not affect the livability of the dwelling, nor the health or safety of the occupants;
  • A signed contract between the borrower and the contractor is in effect for the proposed work;
  • The funds to be escrowed are not less than 100 percent of the repair cost contract.
  • The approving loan underwriter may determine the escrow amount, which could exceed the repair cost;
  • The Closing Disclosure reflects the holdback; and
  • A final certification of completion is required by the appraiser to verify the work was completed in accordance with the requirements and conditions in the original appraisal report.

Additionally, the USDA Repair Escrow Holdback feature also provides for a more limited repair option when the work is to be completed without the services of a contractor subject to the following requirements:

  • The estimated cost to complete the work is not greater than 10 percent of the total loan amount; and
  • The escrow amount is less than or equal to $10,000; and
  • The lender has determined the borrower has the knowledge, skills and time necessary to complete the work

Approved Florida USDA lenderRemember, to finance any repairs into a USDA, the appraised value must be high enough to support the loan amount with the repairs included. Also, the appraiser will initially appraise the home subject to the repairs being completed. What that means is the appraiser’s initial estimate of value would be “as if” the repairs were completed but this value is subject to the repair work being finalized.

Please note that any repair request is truly on a case-by-case basis depending on the facts of the situation and property involved. If you are looking to obtain a USDA loan with home repairs, having upfront budgets and estimates for the work to be done will help organize the start of the process.

Join us next week as we further explore the USDA renovation loan option which allows up to a $35,000 repair limit!

As a USDA Approved Lender under the Single-Family Housing Guaranteed Loan Program, we will walk you through the USDA loan qualifying process step-by-step.

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) 593-2001
SeanS@MPLX.org

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

USDA Blueprint for success

Updated USDA Loan Income Limits for 2022 have arrived!

What are the updated USDA Loan Income Limits for 2022 in Florida, Texas, Tennessee, and Alabama?

While many know that it is possible to make too much money for a USDA loan, what they don’t realize is just how high USDA loan income limits are for 2022!USDA loan income limits have increased!

USDA recently announced an increase to their household income limits for the Single-Family Housing Guaranteed Loan Program.

As you will see in today’s video, the USDA income limit increase can help both homebuyers trying to qualify immediately and those families who are trying to increase their maximum USDA qualifying sales price.

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.

What are the updated loan income limits for 2022 in Florida, Texas, Tennessee, and Alabama?

A key part of USDA Loan eligibility involves determining if your household income will meet the USDA income limits which is also known as “Annual Income.”

This will include all household members and NOT just those who are on the loan. Understanding your applicable county income limit is a critical step towards USDA qualifying.

Let’s use the income limits published for Florida as an example to show how the recent USDA income limits have changed from the previous USDA loan limits in 2021.

Effective June 8, 2022, the USDA Single Family Housing Guaranteed Loan Program has updated their income limits to the following:

  • A 1–4-person household has been increased from $91,900 up to $103,500.
  • For a 5–8-person household, this has now been increased from $121,300 all the way up to $136,600!
  • These are substantial increases that are already making an immediate impact by helping more families qualify to purchase a home in our rural areas!

In addition, certain counties will allow for increased limits above and beyond what we discussed today. An example of such would be Collier County, FL.

For your convenience, click here to check current USDA income limits.

updated USDA Loan Income Limits for 2022 in Florida, Texas, Tennessee, and AlabamaIn Summary:

  1. Never assume that your income is either eligible or ineligible for a USDA loan
  2. Additional factors may apply, and as your USDA mortgage professional we are here to help with the calculations
  3. If you are a realtor or a Home Buyer who had a previous situation where a loan was denied due to the income limitations in place, contact us today so we can put the pen to the paper and start reviewing

Remember, not all lenders have experience with processing and closing USDA loans. Just call or email our office 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.

 

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) 593-2001
SeanS@MPLX.org

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

USDA Blueprint for success

How does the USDA Existing Manufactured Home Pilot Program Work?

The USDA Existing Manufactured Home Pilot Program, which is geared towards providing financing for existing manufactured homes, has been extended through November 30, 2022.

While it is true that the USDA Single Family Housing Guarantee Loan Program does not generally permit loans for existing manufactured homes, the USDA Existing Manufactured Home Pilot Program provides an exception to this rule in certain eligible states.

Today’s short video will break down the details of this unique feature and explain eligible states as well as qualifying parameters.

Remember, if you have not yet done so, make sure to download our “USDA New Construction Guide” with the link below.  This educational resource will walk you through the USDA new construction process and the USDA new construction loan requirements. It is designed for homebuyers, builders, and Realtors alike.

Background – USDA Existing Manufactured Home Pilot Program

The USDA Existing Manufactured Home Pilot Program states:

“According to 7 CFR 3550 and 3555, new manufactured homes are eligible for financing through the Section 502 Single Family Housing (SFH) Direct and Guaranteed Loan Programs. Existing manufactured homes are not eligible unless the home is already financed through Rural Development (RD) (7 CFR 3550.52(e)(l); 3550.73(b); 3555.208(b)(3)). Under the existing manufactured housing pilot, which was initially implemented on August 12, 2016, RD has waived the regulatory restrictions cited above and will finance existing manufactured homes in the pilot states even if the home is not currently financed by RD.”

Property Requirements – USDA Existing Manufactured Home Pilot Program

How does the USDA Existing Manufactured Home Pilot Program Work

There are several requirements that must be met in order to be eligible for financing under the pilot program. If all pilot conditions are met and the applicant is eligible, then the loan request can be filed. Existing manufactured homes and new units that have been on a dealer’s lot for more than 12 months must meet the following criteria:

  • The unit must have been constructed on or after January 1, 2006, in conformance with the Federal Manufactured Home Construction and Safety Standards (FMHCSS), as evidenced by an affixed Housing and Urban Development (HUD) Certification Label.
  • Inspection has been met using one of two of the below methods:
    • Form HUD-309, “HUD Manufactured Home Installation Certification and Verification Report” completed in accordance with 24 CFR 3286.511 by a qualified party as follows:
      • A manufactured home or residential building inspector employed by the local authority having jurisdiction over the site of the home, provided that the jurisdiction has a residential code enforcement program;
      • A professional engineer;
      • A registered architect;
      • A HUD-accepted Production Inspection Primary Inspection Agency (IPIA) or a Design Approval Primary Inspection Agency (DAPIA); or
      • An International Code Council (ICC) certified inspector.
  • Obtain a certification that the foundation design meets HUD Handbook 4930.3, “Permanent Foundations Guide for Manufactured Housing (PFGMH).” The foundation certification must be from a licensed professional engineer, or registered architect, who is licensed/registered in the state where the manufactured home is located and must attest to current guidelines of the PFGMH. The certification must be site specific and contain the engineer’s or registered architect’s signature, seal and/or state license/certification number. This certification can take the place of Form HUD 309.
  • The unit must not have had any alterations or modifications to it since construction in the factory, except for porches, decks or other structures which were built to engineered designs or were approved and inspected by local code officials.
  • Guaranteed loan applications must be manually underwritten.

Manufactured Home Pilot Program in Texas and TennesseeAdditional Property Criteria – USDA Existing Manufactured Home Pilot Program

Please note that the applicant and the property must still meet all additional criteria for guaranteed loans which include, but are not limited to, the following:

  • The unit must have a floor area of not less than 400 square feet;
  • The unit must meet the Comfort Heating and Cooling Certificate Uo Value Zone for the location;
  • The towing hitch and running gear must have been removed;
  • The manufactured home must be classified and taxed as real estate;
  • The remaining economic life of the property must meet or exceed the 30 year term of the proposed loan; and
  • The unit replacement cost coverage must be equal to the insured value of the improvements or the unpaid principal balance with deductible(s) of up to but not exceeding the greater of $1,000 or one percent (1 %) of the policy.

For greater details surrounding the requirements of the pilot program, visit USDA Dept. of Agriculture or contact our office directly with additional questions.

State Eligibility – USDA Existing Manufactured Home Pilot Program

What is USDA Existing Manufactured Home Pilot Program? USDA Approved lender in Texas, Tennessee, Florida and AlabamaMetroplex Mortgage Services, Inc. is a USDA Approved Lender licensed in Florida, Alabama, Tennessee and Texas. I have listed all of the pilot program eligible states below and because this list also includes Texas and Tennessee, we are able to help those potential applicants purchase existing manufactured homes in Texas and Tennessee under the USDA Existing Manufactured Home Pilot Program.

Eligible States include Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

 

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

Can a USDA manufactured home loan help you purchase an existing or new manufactured home?

Last week, we discussed the four steps needed to qualify for a manufactured home construction loan. Today, we are going to discuss in further detail how it is possible to qualify for both existing and new construction manufactured homes with a no down payment USDA loan.

As always, if you have not yet done so, make sure to download our “USDA New Construction Guide.” This educational resource will walk you through the USDA new construction process and the USDA new construction loan requirements and it is designed for homebuyers, builders, and Realtors alike. You can also take advantage of our Second Chance Service which is a great way to get access to an expert second opinion. This can be especially helpful for those recent loan denials or if you just need guidance on how to make the most out of your home loan qualification.

 

The USDA Handbook:

 The USDA handbook defines a manufactured home as follows:

“Manufactured homes are single-or multi-width units constructed partially off-site and transported to a site to be completed and anchored to a permanent foundation. Manufactured homes are structures built to the Federal Manufactured Home Construction and Safety Standards (FMHCSS) and are different from a modular home.”

Can a USDA manufactured home loan help you purchase an existing or new manufactured home

USDA Loans for Existing Manufactured Homes

Generally speaking, USDA loans for existing manufactured homes are extremely limited since the guidelines state that a “purchase of an existing manufactured home is not permitted unless it is a purchase of an existing Rural Development Section 502 direct loan or guarantee” which means in order to purchase an existing manufactured home that is not part of any pilot program, it must already be secured by either a USDA guaranteed or Direct loan, which can be similar to finding a needle in a haystack!

**However, there is an exception to this general rule under the USDA Existing Manufactured Home Pilot Program. This USDA existing manufactured home program provides an exception for select states, including Texas and Tennessee, for those units constructed on or after January 1, 2006. There are additional criteria that applies to this program, so please my team at Metroplex to help with your manufactured housing questions.

USDA Loans for New Construction Manufactured Homes

With that being said, USDA loans allow for the purchase of an “eligible new unit, transportation, and set-up costs” under the USDA Single-Close Construction to Permanent Loan subject to the following criteria:

  • “Purchase of an eligible new unit, transportation and set-up costs, and purchase of an eligible site if not already owned by the applicant” provided the manufactured home has not been “installed or occupied at any other site or location.”
    • Must be a new unit in stock that has never been installed or occupied at any other site or location. Manufactured units may be moved only from the manufacturers or dealer’s lot to the site on which the unit will be financed.
      • Manufactured home units with a manufacture date exceeding 12 months of the purchase agreement contract are ineligible
  • Must have a floor area of not less than 400 square feet.
  • Must be placed on a permanent foundation built to FHA guidelines in effect at the time of certification. Guidelines are presently published in the “Permanent Foundation Guide for Manufactured Housing” (HUD-4930.3G) which is found at: http://www.huduser.org/portal/publications/destech/permfound.html.
  • Meet or exceed the Federal Manufactured Home Construction and Safety Standard (FMHCSS) Uo Value Zone for the geographic area the unit will be placed. The Uo Value Zone will be indicated on the Comfort Heating and Cooling Certificate. Builder must certify thermal requirements at time of purchase have been met.

Approved Florida, Texas, Tennessee and Alabama USDA lenderIn summary, I realize we covered a lot today and although we went through some of the key program basics, because additional property conditions will be required when you purchase a manufactured home with a no down payment USDA construction loan, please call my team to discuss further.

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

USDA Construction Loans for Manufactured Homes in Florida, Texas, Tennessee, and Alabama

 

USDA Construction Loans for Manufactured Homes in Florida, Texas, Tennessee and Alabama

How can you qualify for a new manufactured home with a USDA no down payment construction loan?

While I have previously discussed that it is possible to purchase a new manufactured home with a USDA no down payment construction loan, today’s video will take you through the process and steps from qualification to closing!

Remember, if you have not yet done so, make sure to download our “USDA New Construction Guide” with the link below.  This educational resource will walk you through the USDA new construction process and the USDA new construction loan requirements. It is designed for homebuyers, builders, and Realtors alike.

 

The combination construction to permanent loan section of the USDA guidelines states the following in relation to the single-close program: “A single-close loan combines the features of a construction loan, which is a short-term interim loan for financing the cost of construction, and the traditional long-term permanent residential mortgage.”

In addition, it states under Eligible Loan Costs that “[t]he loan will be used to finance the construction of a new single family housing residence, which can include modular and manufactured home construction” which shows you that the USDA single-close program does allow for manufactured homes under these conditions.

The four steps to qualify for a Construction to Permanent Loan for Manufactured Homes is below:

Qualify for a USDA Construction Loan for Manufactured Homes in Florida, Alabama, Tennessee and Texas

#1. USDA Loan Qualification

The first step in the process is to secure proper qualifications. USDA qualifications for property eligibility does remain the same, which means that the manufactured home must still be located within a USDA designated eligible area.

USDA also has county income limits based on household sizes that apply, but since USDA has recently increased these county limits, they provide for healthy income levels to work on a variety of price ranges.

As a USDA approved lender, we will work with your budget to establish an overall eligibility. We will then help you through the entire process from contract to closing.

#2. Manufactured Home Dealer

Once a budget has been set, you will then work with a manufactured home dealer to discuss all the floor plans, pricing, and available options. Unless we have already approved the dealer, they will need to be approved in accordance with USDA single-close construction requirements.

#3. Land Selection

You can use land that is already owned, build on land that is owned by the dealer, or you can choose to purchase land for the home to be built; however, a manufactured home “must be classified and taxed as a real estate.” This means that it must be on owned land and not on land that is rented or leased.

#4. Preparing for Closing

All the below conditions must be satisfied before closing is scheduled:

  • Home has been selected
  • The land has been identified
  • All contracts have been executed
  • Loan application has been completed
  • Appraisal and underwriting is complete
  • USDA commitment is obtained

Closing does happen prior to the start of construction, which is then followed by draw payments disbursed during the build-out phase.

 

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

The Metroplex Team would like to wish everyone a very Happy Easter!

Tampa FL USDA Approved Lender

 

 

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

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

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