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

Sagittis tempus lacus enim ac dui

What can be included with a USDA Single-Close Construction Loan in Florida, Texas, Tennessee, and Alabama?

What can be included with a USDA Single-Close Construction Loan in Florida, Texas, Tennessee, and Alabama?

Can you purchase land separately with a USDA Single-Close Construction, or does it have to done through a builder? In today’s video, I will explain what can be included with the No Down Payment USDA Single-Close Construction Loan and review the flexibility provided by this unique loan program.

However, don’t forget to download our FREE “USDA Blueprint for Success” with the link below. This is a great educational resource which walks you through the USDA qualifying process step-by-step and is designed for both homebuyers and Realtors alike.

What can be included with a USDA Single-Close Construction Loan in Florida, Texas, Tennessee, and Alabama?

With the USDA Single-Close Construction Loan, it allows for No Down Payment Financing and provides draws to the builder after closing in order to construct the home.WhatUSDA Single-Close Construction Loan in Florida, Texas, Tennessee, and Alabama

USDA Single-Close Construction Loan guidelines will also permit financing of loan related costs up to the appraised value of the property which differs from other programs which limit financing to the lesser of the appraised value or sales price. For example, let’s look at the following eligible costs:

Land: USDA Single-Close construction proceeds can be used towards the acquisition cost of the land, but remember the following:

  • Land can be purchased separately from a third party or directly through the builder contract
  • If land is purchased separately, the seller would receive their proceeds at closing (prior to construction beginning)

Additionally, loan proceeds can be used to payoff the balance of land to be used in conjunction with the USDA Single-Close Construction Loan.

Also, if the land was purchased prior to obtaining the construction loan and has an existing balance, USDA construction loan funds can be used to pay off the outstanding balance owed as part of the process.

Construction Hard Costs: Construction hard costs are those costs contained within the building contract budget which are to be agreed upon by the builder and borrower.

These will also include costs outside of the contract, paid to subcontractors, for contributive work such as well and septic installation, roads/driveways, utility hookups, landscaping, etc.What can be included with a USDA Single-Close Construction Loan in Florida, Texas, Tennessee, and Alabama?

Construction Soft Costs: USDA Single-Close Construction Loan soft costs include, but are not limited to, the following:

  • Contingency Reserve;
  • Interest Reserve;
  • Survey, Permits, Plan Review Fees, Title Updates, Project review fees, and more.

Summary:

In summary, while this is not an exhaustive list of eligible costs, it helps showcase the tremendous flexibility of the USDA Single-Close Construction Loan.  Additionally, even though you are unable to purchase vacant land by itself, the No Down Payment financing feature provides for an affordable way to purchase USDA land in conjunction with the construction of a primary residence.

Lastly, many thanks to everybody for choosing us your USDA lender of choice. Remember to just call or email to discuss your scenario and let us show you the “Metroplex” difference!

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

Thank you again for forwarding and sharing today’s topic with any friends, family, co-workers, or clients who are looking to purchase or build a home!

P.S. – Remember to CLICK HERE to download your Free USDA Blueprint for Success!

Florida USDA loan income limits

How do you qualify for a USDA construction loan in Florida, Texas, Tennessee, & Alabama? Can you build a new home with a No Down Payment USDA construction loan?USDA construction loan in Florida, Texas, Tennessee, & Alabama

Thankfully, I have great news to report and a pleased to announce that Metroplex Mortgage Services is one of the few USDA Construction Loan Lenders who are able to work with the USDA Single-Close Construction to Permanent Loan!

USDA construction loans allow buyers to build a primary residence without a down payment and in today’s short video, I will walk you through the USDA construction loan qualifying process step-by-step.

However, 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.

USDA construction loans fall within the Combination Construction to Permanent Loans section of the 3555 USDA Handbook which provides for the following description of their USDA Single-Close feature:Florida USDA Construction Loan

“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.”

Once an eligible applicant has been properly qualified, here is what can be expected under the USDA Single-Close program:

1. Look for land and work with a builder on construction costs to fit their budget
2. Once land and builder have been selected, the appropriate contracts would be executed
3. This would be followed by loan application, appraisal, underwriting, and obtaining the USDA commitment
4. Once all conditions are satisfied then the closing is scheduled.
5. Builder/Contractor must meet USDA eligibility requirements and be approved prior to closing
6. Remember, closing occurs prior to the start of construction with the single-close program and because there is only one closing this saves substantial costs.
7. At closing, funds are disbursed to cover land acquisition, construction costs, and permanent mortgage funding.
8. Construction begins and draw payments are administered as the build-out progresses

USDA Construction Loan Summary:

1. No Down Payment! – While many banks require a 20% down payment for a construction loan, USDA loans allow for “No Down Payment” which is the same for both existing and new construction homes.USDA construction loan requirements in Florida

2. USDA Eligible Areas – USDA qualifications for property eligibility remain the same, which means that the property must be located within a USDA designated eligible area.

3. USDA Income Limits – USDA has county income limits which are based on household size. These will still apply as they do with existing construction home. However, remember that USDA has recently increased these county limits which allows for increased income limits which can work with on a variety of price ranges.

4. Flexible Credit Qualifying – Although minimum credit qualifying conditions must be met, the USDA program offers extremely flexible credit qualifying with reduced waiting times for prior bankruptcies, foreclosures, and short sales when compared to conventional underwriting guidelines.

As with any home purchase, understanding your budget upfront is always critical so getting properly qualified by an approved USDA Approved Lender is a the crucial step that helps to iron out details such as monthly payment, construction budget, and land costs.

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

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

Thank you again for forwarding and sharing today’s topic with any friends, family, co-workers, or clients who are looking to purchase or build a home!

P.S. – Click here to download your FREE USDA Blueprint for Success!

USDA mortgage flood insurance in Florida

christmas tree

Merry Christmas!

Most people know me as being very buttoned down and serious, but I know how to have fun too! Take a look at this video because I am sure it will give you a good laugh.

Also, check out the links that I posted below for any Christmas gift ideas, how to survive holiday travel, and also a resource  for those last minute online Christmas gifts.

Merry Christmas!

35 Last Minute Christmas Gifts

Top 10 Holiday Survival Tips

Last minute online Christmas Gifts for 2019

Photo Credit: www.freedigitalphotos.net

How do you qualify for a USDA loan in Florida, Texas, Tennessee, and Alabama?

We realize that the USDA loan process can be overwhelming to homebuyers, but because of the many benefits offered such as No Down Payment and flexible credit qualifying, it What are the qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama?is important to understand the qualifications for USDA loan eligibility!

In today’s short video, I will walk you through the qualifications for USDA loan eligibility and explain key USDA loan approval requirements for Florida, Texas, Tennessee, and Alabama.

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.

What are the qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama?

USDA 100% financing allows first-time homebuyers and others looking to purchase a primary residence to save money when purchasing a home by eliminating the need for a down payment.

With that being said, let’s now review some of the key USDA eligibility requirements for property, income, and credit:

USDA Property Eligibility – Florida, Texas, Tennessee, and Alabama

USDA loans require that the property being purchased must be situated in an eligible rural area. The USDA search tool can help you find eligible homes. Also, keep in mind that:USDA Property Eligibility – Florida, Texas, Tennessee, and Alabama

  • A qualified property must be predominantly residential in use, character and appearance.
  • The property must not include buildings principally used for income-producing purposes.
  • USDA Loans will allow for Multiple Parcels, but additional requirements will apply.

USDA Loan Income Limits – Florida, Texas, Tennessee, and Alabama

When dealing with USDA income eligibility requirements, there are two types of income to review—annual income and repayment income.

  • Annual Income” refers to all eligible income sources from all adult household members, not just who is on the USDA loan.Current USDA Income Limits
    • USDA Loan eligibility requires that your household income does not exceed county USDA income limits.
    • You can search here to find specific USDA income limits for your area.
  • Repayment Income” will determine if the applicant(s) has sufficient income to repay the mortgage in addition to recurring debts.
    • Repayment income calculations often differ from the calculation of annual income.
    • Repayment income is the stable and dependable income of the applicants who will be on the USDA loan.
    • Also remember that co-signers and non-occupant co-borrowers are not permitted on USDA guaranteed loans.

USDA Loan Credit Score Requirements – Florida, Texas, Tennessee, and Alabama

USDA defines a credit score as follows:USDA Credit Score Requirements in Florida

“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.”

Updated USDA credit score guidelines no longer have a required minimum credit score, but they do require that an applicant have a validated credit score.

However, USDA also states that, “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.”

Additionally, even though USDA guidelines do not have a required minimum credit score, lenders may establish their own minimum credit score requirements which can vary from lender to lender.

Summary – Qualifications for USDA loan eligibility in FL, TX, TN, and AL

Please note that while today’s topic does not address all USDA loan eligibility requirements, it does provide critical USDA qualifying details for Property Eligibility, Income Limits, and Credit Score eligibility.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

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

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

Qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama.

Can you finance the vacant lot next door with the same USDA loan?Can you qualify for a USDA loan to buy land next door to the home you are purchasing?

What can be done when a homeowner wants to sell both their property as well as the lot next door within the same sale?    Thankfully, USDA guidelines provide flexibility for homebuyers to purchase multiple parcels of land with a USDA loan.

However, it is important to have a game plan and be prepared! In today’s video, I’ll explain how you can qualify to purchase multiple parcels of land with a USDA loan and provide a roadmap on how to buy the vacant lot next door as part of a single transaction. This is specific to a USDA loan since other loan programs have their own unique requirements.

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.

Can you purchase multiple parcels of land with a USDA loan?

USDA Guidelines offer improved flexibility when looking to include in the purchase the land next door to the home you are buying.

While this is not a comprehensive list, below are 5 critical points to remember when purchasing a multiple parcels with the same USDA loan.

  1. Highlands County, Sebring, Avon Park, Lake Placid, Okeechobee USDA loansThe USDA mortgage must provide a valid first lien
    covering each parcel.
  2. Each parcel must be conveyed in its entirety and have the
    same zoning.

    • TIP: If the lots have not yet been combined, remember to separately list each parcel ID on the same sales contract
  3. Parcels must be contiguous (connected) unless divided by a road and the remaining parcel cannot be developed.
    • For example: Waterfront properties where the parcel
      without the residence provides access to the water.
  4. The entire property will contain only one dwelling but can have non-residential, non-income producing buildings such as a garage.
  5. Lot must meet USDA site requirements:
  6. Prepare to have all lots included with the final survey.

Summary – How to purchase multiple parcels of land with a USDA loan?

Remember that when trying to qualify for a USDA loan to buy the vacant lot next door to the home you are purchasing, guidelines will vary between loan programs as well as between lenders, so upfront communication is critical prior to signing a sales contract.

Can you finance the vacant lot next door with the same USDA loan?Here at Metroplex, we encourage both homebuyers and Realtors to call and discuss your scenarios.

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!

(800)806-9836 Ext. 280

SeanS@MPLX.org

We are here to help you in each step of the mortgage process!

Lastly, don’t forget to discover all of our FREE USDA Resources.

These educational downloads include our USDA Blueprint For Success and our guide to USDA Financing for New Construction.

Make it a great day and I look forward to seeing you for the next tip of the week!

 

What are three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers?
What are three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers in Florida, Texas, Tennessee, or Alabama?

We are constantly hearing how tough it can be just to get an offer accepted! Unfortunately, it is true that many sellers are only wanting to accept offers with cash or conventional financing.

However, that can be very short-sighted from a home seller’s standpoint, because there are many extremely qualified USDA loan buyers who are getting passed by simply because they are not working with a conventional loan. In today’s video I will share three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers and why a home seller should not be scared of the USDA program.

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 USDA loan process step-by-step and is a great tool for both homebuyers and Realtors alike.

What are three USDA loan benefits that provide sales contract negotiating advantages for first time homebuyers?

What are three reasons a seller should accept a Florida, Texas, Tennessee, or Alabama USDA loan for financing?

As a starting point, I feel that it is important to help educate home sellers on USDA loan advantages, how it can expand their potential pool of buyers, and how working directly with a USDA approved lender can help to make for a successful transaction.

Remember, just because the sales contract states that they are getting a conventional loan, does not guarantee it will be a successful closing!

  1. There is NO Maximum Sales Price for USDA loans!

Unlike FHA or Conventional loans which have maximum loan limits per country, the USDA program does not have a maximum loan amount. USDA loans base the sales price a buyer is eligible for on the borrower’s ability to qualify.USDA loan limits in Florida. Sebring FL USDA Loans.

Thus, if a home seller eliminates those offers with USDA loans, they are missing out on potential offers which could be even more competitive then only considering sales contracts with conventional loans.

USDA loans have come a long way since the guidelines were overhauled back on 12/1/2014 and because the USDA loan program has been greatly modernized, it should be viewed as a reliable loan program for sellers to choose from especially when working with a USDA Approved Lender such as Metroplex Mortgage Services.

  1. There are NO closing costs a seller has to pay on a USDA loan!

Many Realtors and sellers continue to think that there are additional costs a seller Sebring FL, Dallas TX, Alabama, Tennessee, Tampa Florida USDA Approved Lendermust pay if they accept a sales contract with USDA financing. This is commonly referred to as a “non-allowable” cost.

However, that is simply not true!  A seller is not required to pay any of the buyer’s closing costs, pre-paid items, or inspections unless they agree to it within the sales contract. Just to be clear, the seller is not required to pay any additional costs for USDA financing.

I know how important it is to write a clean offer without requiring extra costs from the home seller, so please make sure sellers understand that USDA loans do not require any additional costs from them!

  1. In-ground swimming pools are allowed with a USDA home loan!

Under prior guidelines, there were restrictions for properties that had in-ground swimming pools. Even though this guideline was updated way back on December 1, 2014, many Realtors, sellers, and even some lenders still believe that an in-ground swimming pool cause trouble for USDA financing.

However, remember that this archaic guideline is thankfully a thing of the past.  USDA loans do allow in-ground swimming pools!

Importance of working with a USDA Approved Lender

As an approved USDA lender, Metroplex Mortgage Services known for our specific USDA loan expertise and because of our dedicated in-house underwriting, this provides a customized USDA loan solution from initial qualification to closing. This type of team approach allows one point of contact for Realtors and buyers alike throughout the loan cycle.

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

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

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE

 Search 2 Avatar image Three reasons why a home seller should accept your USDA loan offer in Florida

Can you qualify for a USDA loan if you own another home?   Do you have to sell your home before you can qualify for a USDA loan? Can you have two USDA loans at the same time?Tampa Florida USDA Approved Lender

As you can imagine, these are all common questions that we receive.  In today’s market, a homebuyer needs every qualifying advantage that is available!

In this short video, I will explain how to qualify for a USDA loan if you own another home, provide answers to these questions, and break down the USDA guidelines 1-2-3.

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 an educational resource that walks homebuyers and Realtors through the USDA process step-by-step.

Can you qualify for a USDA loan if you own another home in Alabama, Florida, Texas, or Tennessee?

Remember that the USDA Single Family Housing Guaranteed Loan Program (“SFHGLP”) is designed for applicants to purchase primary residences.

With that being said, USDA guidelines state the following for situations when an applicant already owns a dwelling:

An applicant who owns a dwelling to which they will retain ownership may be eligible for a guaranteed loan. It is not the intent of the SFHGLP to assist borrowers in building an investment portfolio.Sebring Florida USDA Loan

However, in cases where the applicant does own another dwelling, they may still purchase another home with a USDA loan if the following criteria are met:

  • The homeowner’s current dwelling is not financed by a Rural Development guaranteed, direct Section 502 (including cosigned obligations), or 504 loan or active grant.
  • The homeowner will occupy the home financed with the guaranteed loan as their primary residence throughout the term of the loan;
  • The homeowner is financially qualified to own more than one house;
  • The loan applicant is limited to owning one single family housing unit, whether adequate or inadequate, other than the house associated with the loan request.”
  • The current home owned no longer adequately meets the applicants’ needs. Examples include, but are not limited to:
    • Relocation due to a new job opportunity.
    • Requires a larger home to provide for a growing family.
    • Obtaining a divorce and the ex-spouse will retain the dwelling.
    • Is a non-occupying co-owner or co-borrower on another mortgage loan and wants to purchase their own dwelling.

Therefore, while it is not possible to have two USDA loans at the same time, it is possible to already own a home that is not financed by another USDA loan and still qualify for a new USDA loan on the property being purchased.  However, specific criteria must be met!Can you qualify for a USDA loan if you own another home in Alabama, Florida, Texas, or Tennessee?

As a USDA Approved Lender, we are here to help answer your questions and walk you through the qualifying process and help maximize your qualifying ability.  Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

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

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

Do you need Private Mortgage Insurance (PMI) with a USDA Loan?So, does a USDA loan have PMI? Today’s video will answer the question if USDA loans have PMI and keep you in the know about terminology and key differences between USDA, FHA, and Conventional loans.

If you have not yet done so, please download our USDA blueprint for success with the link below. This free guide is a great resource to walk you through step by step through the USDA qualifying process.

Do USDA Loans have PMI?

As a starting point and to clarify, PMI (private mortgage insurance) exists on conventional loans in cases of less than 20% down payment and it has a variety of different ways of how it can be paid.

Also, under the Homeowner’s Protection Act, PMI can be terminated either by request or automatically when your balance is paid down to or below 80% of the original home value.

Now, MIP (mortgage insurance premium) is found on FHA loans and is paid monthly.

Does a USDA Loan have PMI

Also, remember that when you have less than 10% down payment on an FHA loan, you will be required to pay the mortgage insurance for the life of the loan.

With down payments of 10% or greater, FHA mortgage insurance will be removed after 11 years.

However, in the case of USDA Loans, they do not technically have mortgage insurance, but instead, have an annual fee and even though it is for the life of the loan, it happens to be over two times lower than that of FHA’s monthly mortgage insurance!

Here is an example to help show you the difference in monthly costs between FHA and USDA:

FHA: .85% X $100,000 = $850 / 12 = $70.83 per month

USDA: .35% X $100,000 = $350 / 12 = $29.17 per month

Does a USDA Loan have PMI

Yes, it is true, even though USDA loans allow for NO Down payment their borrowing costs are better when compared to FHA which requires a minimum down payment.

And don’t forget that your closing costs can be financed with a USDA loan when the appraised value is higher than your purchase price, which is a benefit that FHA will not allow.

Whether it be FHA, VA, USDA, or Conventional – Just call or email to discuss your scenario and let us show you the “Metroplex” difference.

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

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

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

Remember, you can download our “USDA Blueprint for Success” by CLICKING HERE.

P.S. Now, I know these terms can get be hard to decipher, so please check out this post to  help explain common mortgage acronyms that us mortgage nerds take for granted!

Quiz Time! Do you know these important mortgage acronyms?

Can you qualify for a USDA Loan after forbearance?Can you qualify for a USDA Loan after forbearance in Florida, Texas, Tennessee, or Alabama?

How long do you have to wait after forbearance to qualify for a USDA loan?

This week’s topic is especially timely due to the many homeowners who are exiting their COVID-19 forbearance plans.

However, many are still unsure how to qualify for a USDA loan after one has entered into a forbearance plan and in today’s video, I am going to walk you through the details on how to qualify for a USDA loan after forbearance.

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.

Can you qualify for a USDA Loan after forbearance in Florida, Texas, Tennessee, or Alabama?

For background on today’s topic, the Consumer Financial Protection Bureau (“CFPB”) provides the following:

“Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time while you regain your financial footing.”Sebring Florida USDA Loans

The CFPB additionally states, “Homeowners who receive COVID hardship forbearance are not required to repay their paused payments in a lump sum once the forbearance period ends. You can talk with your mortgage servicer, or start with a HUD-approved housing counseling agency, to discuss a repayment plan that works for your situation.”

“If your mortgage is backed by HUD/FHA , USDA, or VA:  You may request up to two additional three-month extensions, for up to a maximum of 18 months of total forbearance. But to qualify, you must have received your initial forbearance on or before June 30, 2020. Check with your servicer about the options available.”

Now, so how do you qualify for a USDA loan after forbearance?

Thankfully USDA COVID-19 FAQs provide answers to the following questions on how to qualify for a USDA loan after forbearance:

Question:  If the borrower is in forbearance but has been making their payments on time. Do they qualify for a refinance or purchase loan?How Do I Qualify for a USDA Streamline Refinance?

Answer: Yes, a borrower who is current on their loan payments qualifies for a purchase or refinance loan, assuming other standard requirements are met.

Question: Is there a waiting period after forbearance in order for a borrower to be eligible for a new loan?

Answer: Yes, there is a waiting period subject to the following seasoning requirements:

  • For purchase transactions (Manually Underwritten, Refer and Refer with Caution), applicants emerging from forbearance must have resumed repayment of their mortgage loan for a period of at least 3 months prior to applying for a new loan.
  • For non‐streamlined and streamlined refinance transactions, the loan must have closed at least 12 months prior to the request to refinance, borrower must have resumed making payments for a period of at least 3 months and have a total 180‐day period of satisfactory payments, excluding the time the loan was in forbearance.
  • For streamlined‐assist refinance transactions, the borrower must have resumed making payments for a period of at least 3 months and not have any defaults in the previous 12‐month period, excluding the time the loan was in forbearance.Tampa FL USDA Loans

However, it is important to note that USDA forbearance qualifying guidelines also provide further details for situations where the property will be sold prior to any waiting periods occurring:

If the property will be sold, thus they cannot meet the 3-month seasoning period, the seasoning period cannot be achieved (as the home was sold) and would not be applicable.”

Question: If the borrower had their auto loan, student loan, or similar debt in forbearance due to COVID-19 and the payments are currently deferred. Can we exclude these payments from debt‐to‐income ratios?

Answer:  No, the regular monthly payment should be considered in the debt‐to‐income calculation even if the loan is in deferment or forbearance.

The reasoning is that because deferment/forbearance due to Covid-19are treated as temporary in nature and require that the regular monthly payment be considered in the debt‐to‐ratio calculation.

Please note that while this was only a brief summary and is not meant to encompass all forbearance related questions, it does provide key points to remember when attempting to qualify for a USDA loan after forbearance.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

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

I want everyone to make it a great day and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

Has a lender or loan officer told you that the USDA is “out of money”?

Each year around this time we receive calls asking if the USDA LoanWhy do lenders say USDA out of money? program is “out of money”, and because there is so much misinformation about our topic today, this short video will share the facts that you need to know and help set the record straight.

Also, if you have not already done so, don’t forget to download our USDA Blueprint for Success. This is a great educational resource for the real estate community and is designed for both homebuyers and their Realtors.

Has a loan officer told you that USDA is “out of money”?

Just to give a brief background on our topic today, the USDA fiscal year runs from October 1st until September 30th and at the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time –approximately two weeks.

However, as many have been led to believe, this does not meant that that the USDA program is stopped in its tracks, but instead during this temporary lapse in funding,  USDA Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.Florida USDA Income Limits

So, what does this mean to homebuyers and Realtors?

Quite simply, depending on how your lender is set up to do business at this time will determine if they are able to continue processing and closing USDA loans without interruption.

The good news is, at Metroplex Mortgage Services it is business as usual as we continue to accept applications, process, and fund USDA loans without delay!

Here is an overview of what to expect at this time of the year:

  1. As a USDA Approved Lender,  we will continue to submit applications for purchase and refinance loan transactions to USDA;
  2. USDA Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;
  3. Upon receipt of the USDA conditional commitment, loans will continue to close as scheduled;
  4. Then, when funds become available, USDA Rural Development will obligate (reserve) funds for Conditional Commitments that were issued for loans subject to the availability of commitment authority; and
  5. Once these loans are obligated, USDA Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified and all conditions of the Conditional Commitment are satisfied;

Remember, 2nd opinions are always important (especially around this time of year), so if you have USDA financing questions and are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are already in progress.Sebring Florida Highlands County USDA Loans

 

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

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

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

Don’t forget, here is the link to our USDA Blueprint for Success:

 

USDA Florida Credit Score Requirements

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