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

Sagittis tempus lacus enim ac dui

Are there USDA home inspection requirements in Florida, Texas, Tennessee, or Alabama?What are USDA home inspection requirements in Florida, Texas, Tennessee, or Alabama?

Once the sales contract has been signed, you might wonder if there are any specific USDA home inspection requirements?

In today’s video, I will discuss if a home inspection is required for a USDA home loan along with reviewing other USDA inspection requirements.

Don’t forget that in addition to our USDA expertise, we are also a VA-approved lender, work daily with low down payment conventional loans, and the FHA program.

Realtors and buyers refer to us for our overall Government loan experience, so just call or email to discuss your next pre-qualification or if you just want to take advantage of our free Second Opinion Service!

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

What are USDA home inspection requirements in Florida, Texas, Tennessee, or Alabama?

While not specifically required, USDA guidelines do state that applicants are “encouraged to obtain a detailed home inspection of the property….

A home inspector will generally check items that include, but are not limited to, the home’s foundation and major mechanical systems like electrical, roof, plumbing, and heating/cooling to ensure that these components are working properly.

Thus, while it is not required to have a home inspection for a USDA loan, it is highly recommended and in the buyer’s best interest to have one.

What are the advantages of a home inspection?

A home inspection will protect and improve your confidence as a buyer. It also will help you understand more about the property you wish to purchase, and its potential defects.Tampa FL USDA Approved Lender List

A home inspection will include the following benefits:

 

  • Provide a report which details the status of all major mechanical systems
  • Identify items that may need to be fixed prior to purchasing the home
  • Identify potential health and safety hazards

What is the difference between an Appraisal and a Home Inspection?

While a home inspection is meant to assess the property’s conditions and any potential defects, appraisals are generally known for establishing the property’s value. Additionally, appraisals ensure minimum property conditions (as outlined per USDA and HUD Handbook guidelines) are met.

If the USDA appraisal cites the need for further inspections (i.e.. roof, foundation, plumbing, septic tank, etc.) then those specific inspections would be required.

However, remember that a USDA appraisal should not be treated as a substitute for a home inspection.

While home inspections are not required, USDA purchase transactions will require an appraisal!

The appraisal protects the lender from loaning you more than the property is worth and making sure that it meets loan program requirements. The inspection helps protect you from unknowingly buying a property with problems or issues.

Tampa and Sebring FL USDA Approved Lender List

What are examples of other types of inspections you should be aware of?

Individual Water Systems (Private Wells)

USDA guidelines state that “[i]ndividual water systems are owned and maintained by the homeowner and subject to compliance with all requirements of the local and/or State Health Authority codes.”

Water quality tests are required and the test must be performed through the local health authority or a state-certified laboratory.

Septic Tank

A “qualified appraiser who certifies the property meets required HUD’s Single-Family Housing Policy Handbook” would satisfy the requirement for the lender to obtain a septic evaluation.

However, the “septic evaluation may require additional inspections as a result of the inspection.”

Termite Inspections

 USDA Guidelines state the following: “Termite/pest inspections are not required unless the lender, appraiser, inspector or State law requires the inspection to confirm the property is free of active infestation.”

USDA Home Inspection Requirements – Summary

Here are some key takeaways from today’s tip about home inspections:

  • While home inspections are highly encouraged, they are not required
  • A home inspection will help you understand more about the property you wish to purchase, and its potential defects
  • Appraisals are required, and after completion, additional inspections may be needed
  • While private wells and individual water systems require a water quality test, septic tank inspections are not needed (unless specified by the appraisal).

USDA Approved Lender

I founded Metroplex Mortgage Services way back in 2001 and on top of being a top-ranked USDA Approved Lender, my team is known for their government loan expertise and dedicated service when walking homebuyers through the mortgage qualifying maze.

With that in mind, it is a great time to get qualified for a USDA Loan with many benefits, including…

  • 100% financing
  • Flexible credit guidelines
  • The ability to finance closing costs
  • And much more!

Remember to just call or email if you want to discuss a scenario, get pre-qualified, or to take advantage of our free second opinion service!

(800)806-9836 Ext. 280
Call/Text: 863-593-2001

SeanS@MPLX.org 

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

P.S. Don’t forget to download our USDA blueprint for success with this link below.

What are USDA home inspection requirements in Florida, Texas, Tennessee, or Alabama?

 

 

 

What are USDA well and septic distance requirements in Florida, Texas, Tennessee, and Alabama?

When dealing with rural areas, it is critical to understand how the USDA well and septic distance requirements can affect USDA loans in Florida, Texas, Tennessee, or Alabama. 

In today’s video, I will break down the USDA loan well and septic distance requirements and explain minimum property eligibility for USDA Rural Home Loans.

However, don’t forget to download our USDA Blueprint for Success. This FREE guide is designed to help walk you through the USDA process step-by-step and is great for both Realtors and homebuyers alike!

What are USDA well and septic distance requirements in Florida, Texas, Tennessee, and Alabama?

What are USDA well and septic distance requirements?

As an approved lender under the USDA Single Family Housing Guaranteed Loan Program,

USDA minimum property requirements for well and septic distance measurements follow HUD Handbook 4000.1 guidelines.

HUD Handbook 4000.1 minimum distance requirements between wells and sources of pollution for Existing Construction* are as follows: 

  • A well must be a minimum of 10 feet from the property line.
  • A well must be a minimum of 50 feet from septic tank.
  • A well must be a minimum of 100 feet from the drain field.
    • However, this distance may be reduced to 75 feet if allowed by the local authority.What are USDA well and septic distance requirements in Florida, Texas, Tennessee, and Alabama?
  • If the property is adjacent to a residential property then local well distance requirements prevail.
  • If the property is adjacent to non-residential property or roadway, then there needs to be a well separation distance of at least 10 feet from the property line.
  • The distance requirements of the local authority will prevail if greater than what is stated in the HUD Handbook.

*Remember that this guidance is for existing properties only and different requirement will apply to new construction.

Preparing for USDA Well and Septic Distance Requirements

Sebring Florida and Highlands County USDA loansGenerally, USDA well and septic distance requirements are not customarily measured until after the sales contract is received.  With that being said, it is critical to let us know of any upfront concerns so we can provide timely advice to help keep the transaction on track.

Don’t let USDA well and septic distance requirements overwhelm you… because we are here to help! While these properties may involve extra steps, our expertise is here to assist with opening the door to homeownership!

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.

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.

 

FHA and USDA Appliance Requirements in Florida

What are USDA and FHA Appliance Requirements in Florida, Texas, Tennessee, or Alabama? Do USDA or FHA appraisals require a stove or other appliances to be present in the property? 

In today’s short video, I will share with you the details on USDA and FHA appliance requirements so you can be prepared for that next appraisal!

However, before we get started, don’t forget to take advantage and download our “USDA Blueprint for Success.” This free guide is designed to walk you through the USDA process step-by-step. Plus, it’s an excellent tool for both homebuyers and realtors alike.

What are USDA and FHA Appliance Requirements in Florida, Texas, Tennessee, or Alabama?

As a starting point, USDA and FHA loans are both governed by minimum property requirements found in HUD Handbook 4000.1.

In turn, HUD Handbook provides the following definition for appliances:

Appliances refer to refrigerators, ranges/ovens, dishwashers, disposals, microwaves, and washers/dryers.”

Further, the handbook also states that any appliances, from those listed above, “Are to remain and that contribute to the market value opinion must be operational.”

It also requires that the “Appraiser must note all appliances that remain and contribute to Market Value.”

Do USDA or FHA appraisals require appliances to be present on the property?

FHA and USDA Appliance Requirements in Florida

In summary, despite what many think, stoves and other appliances are not required. However, for those appliances that do remain and contribute to market value, they must be operational!

For example, while you don’t necessarily have to have a stove, if there one there, it should be in working condition!

Remember, as a USDA approved lender, let our experience 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

I want everyone to make it a great day, and I 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.

What are USDA loan water testing requirements for a private well in Florida, Texas, Tennessee, or Alabama?

So, what are the necessary steps to meet USDA loan well water testing requirements?  As you can imagine, this is a common question that I receive from both Realtors and homebuyers alike, and in today’s video I will break down the details so you will be in the know and help keep your transaction from falling off the tracks.What are USDA loan well water testing requirements in Florida, Texas, Tennessee, or Alabama?

However, before we get started please take advantage of our second chance review service which helps you get access to an expert second opinion and works great for both new pre-qualifications and for those loans that have been recently denied.

What are USDA loan well water testing requirements in Florida, Texas, Tennessee, or Alabama??t

What are USDA loan well water testing requirements in Florida, Texas, Tennessee, or Alabama?

When working in rural communities, private wells can be common and understanding the USDA loan well water testing requirements is an important step in the process.

USDA testing requirements for individual water systems that are owned and maintained by the homeowner, must meet the requirements of the local and/or State Health Authority codes.

USDA loan water testing requirements state the following for Individual Privately Owned water systems:

  • The water quality of the well must meet the requirements of the state or local authority. If the state or local authority does not have specific requirements, the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply.
  • The local health authority or a state certified laboratory must perform a water quality analysis. The Safe Water Drinking Act does not apply to private wells.
  • The well location for individual water supply systems must be measured to establish the distance from the septic system. The separation distance between the well and septic systems must meet the SF Handbook (HUD Handbook 4000.1.) or be found acceptable by the local and/or State Health Authority.
  • Individual water systems/wells should be located on the subject property site. If located on an adSebring FL USDA Approved Lenderjacent property, evidence of water rights and recorded maintenance agreement must be retained in the lender’s permanent loan file as acceptance of the well as the primary source of water.

Additionally, USDA guidelines require the following for Individual Privately Owned Shared wells or off site facilities:

If the property is served by a shared well or off-site facility, the lender must ensure the private system will provide a continuous and adequate supply of safe and potable water. The following requirements must also be met:

  • The well serves properties that cannot feasibly be connected to an acceptable public or community water supply system. It is the lender’s responsibility to make this determination.
  • A shared well must have a valve on each dwelling.
  • The water supply is adequate for all families served. A shared well must service no more than four living units or properties unless approved and enforced by the local code authority.
  • The water quality of the well must meet the requirements of the state or local authority. If the state or local authority does not have specific requirements, the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply.
  • The well must have an agreement that meets the following requirements:
    • Is binding upon all signatory parties and their successors in title;
    • Is recorded or will be recorded no later than the closing date; and
    • Makes provisions for maintenance and repair of the system and the sharing of costs to do so. These provisions must include a permanent easement that allows access for maintenance and repair.

While today’s post does not take into account all situations involving USDA loan well water testing requirements, it does provide a starting point to help with the process.

Remember, because we offer in-house underwriting and are known for our USDA experience, make sure to use my team as a resource and call if you have any specific questions about USDA loan well water testing requirements so we can review and advise.

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

Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our second chance review service which is great for both existing transactions & pre-qualifications.

(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 the USDA Blueprint for Success HERE

Tampa FL USDA Approved Lender List - What are the benefits of a USDA home loan in Florida

What are the differences between FHA and USDA loans in Florida, Texas, Tennessee, or Alabama?

When first-time home buyers are comparing a USDA Rural Housing Loan vs. the the FHA loan program, it is important to understand the differences between FHA and USDA loans. In today’s video I will compare the benefits of a USDA Home Loan vs. an FHA loan so you can see the differences side by side.What are the differences between FHA and USDA loans in Florida, Texas, Tennessee, or 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 USDA home loan process step-by-step and is a great educational resource for first-time homebuyers.

What are the differences between FHA and USDA loans in Florida, Texas, Tennessee, or Alabama?

How do the benefits of a USDA home loan compare to FHA loans for first-time buyers?

As a starting point, although USDA and FHA loans are both available first-time homebuyer programs, there are distinct differences between the two loan options.What are the differences between FHA and USDA loans in Florida, Texas, Tennessee, or Alabama?a

Today we will compare and contrast USDA Home Loans vs. FHA loans along with discussing key benefits such as down payment requirements, closing costs, and the borrowing costs associated with each program.

Is a Down Payment Required?

One of the most well known benefits of a USDA loan is that there is  no down payment required!

However, unlike USDA loans which offer 100% financing, an FHA loan requires a minimum down payment of 3.5% of the sales price.  For example, on a sales price of $150,000 ,your minimum down payment on an FHA loan would be $5,250 compared to no down payment for a USDA loan.

How do Closing Costs compare?

Another important benefit of a USDA loan is that it allows you the flexibility to finance closing costs into the loan.  This can happen in situations where the appraised value is higher than the contract sales price.  Obviously, the ability to minimize out-of-pocket costs can be an extremely attractive feature to first-time homebuyers.

In contrast, FHA loans do not permit the financing of those out-of-pocket closing costs.

Remember that no down payment does not mean the same thing as no money-out-of pocket and closing costs will apply on both FHA or USDA loans.  However, depending on your appraised value, a USDA home loan has the ability to finance those out-of-pocket costs into your loan which can be a another key benefit for first-time homebuyers.What are the differences between FHA and USDA loans in Florida, Texas, Tennessee, or Alabama?

How is 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 it is over 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:

Sebring FL USDA Home Loans for First-Time Homebuyers

In summary, because many banks and lenders do not specialize in USDA loans, we commonly see first-time homebuyers only offered FHA or Conventional programs.

As you can see, it’s important for you to understand the differences and also to know that  we are here to help walk you through the process.

On top of being a top ranked USDA Approved Lender, my team is known for our overall government loan experience and our specific USDA loan expertise.

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 I look forward to seeing you right here for the next tip of the week!

P.S. – You can download the USDA Blueprint for Success HERE

Tampa FL USDA Approved Lender List - What are the benefits of a USDA home loan in Florida

A USDA Loan Calculator for Florida, Texas, Tennessee, and Alabama is a critical tool because it helps keep your payment within budget when shopping for a home!USDA Loan Calculator for Florida, Texas, Tennessee, and Alabama

However, be awareMany online USDA loan calculators are simply not designed to properly calculate USDA monthly payments. They may leave out important details such as property taxes, homeowner’s insurance, and any associated USDA fees.

As  and qualifying budgets are so critical, today’s topic is an important one because it will walk you through the steps on how to properly calculate a USDA monthly payment.

However, if you have a qualifying question or a transaction that is experiencing trouble, remember that I started Metroplex way back in 2001, so let our experience be a resource for you and take advantage of our Free Second Opinion Service (“SOS”) which can be a great way to help keep your mortgage approval headed in the right direction!

USDA Loan Calculator for Florida, Texas, Tennessee, and Alabama!

When using our USDA mortgage calculator,  it is important to remember the following:

Florida USDA Approved Lender List

1. Taxes and Insurance

These are two items that are sometimes overlooked but are a required part of the USDA loan qualifying process when determining qualifying ratios and monthly housing expenses.  If you are unsure about property tax estimates, a good tip is to check with your local property tax collector who can be a resource to help with questions.

2. Principal and Interest

The principal part of your payment goes towards paying down the loan balance while the interest is the cost paid for borrowing your loan amount. Remember interest rates change daily and multiple factors contribute to your interest rate calculation, so please call us if you have any specific rate and payment scenario questions.

3. The USDA Guarantee Fee and Monthly Premium

USDA home loans require 2 separate fees:USDA Loan Calculator for Florida, Texas, Tennessee, and Alabama

  1. The USDA Guarantee Fee is a one time charge of 1.00% that is financed into the final loan amount.
  2. While the USDA monthly premium of .35% is calculated on a monthly basis and is part of your total monthly housing expense.

Our USDA Loan Calculator

To help you in the process, we have created a USDA Mortgage Calculator. Let’s go over a quick example to help you get started:

  1. Type in your purchase price
  2. USDA Guaranteed loan terms will be for 30 years

    USDA Loan Calculator for Florida, Texas, Tennessee, and Alabama

  3. Select your interest  rate (Remember that interest rates do change every day)
  4. Input the estimated annual property taxes
  5. Input the estimated annual homeowner’s insurance premium
    (Remember that property taxes  and insurance will vary from property to property)
  6. Review your total estimated USDA monthly housing expense

Based on the numbers selected, our USDA Loan Calculator automatically factors both the USDA Guarantee Fee and the monthly premium into the housing expense estimate listed.

Feel free to use our specific USDA Loan Calculator. It is to the right if you are desktop, or scroll down to the bottom on mobile.

When it comes to government loan programs I always say, don’t be scared – be aware! Just call or email to discuss your scenario, and let us show you the “Metroplex” difference!  Learn what it means to have the strength and experience of a top ranked USDA Approved Lender working for your benefit!

(800)806-9836 Ext 280

SeanS@MPLX.org

USDA Mortgage Calculator for Florida, Texas, Tennessee, and Alabama

Please note, that this calculator is for estimating purposes only, minimum credit conditions will apply on all loans, and this is not a Good Faith Estimate nor a commitment to lend. You can forward this video and share our USDA payment calculator with anyone who may benefit and remember to always call my team with questions.

Don’t forget to download our USDA Blueprint for Success educational resource.  This complimentary guide is designed to walk you through the USDA qualifying process step-by-step and is ideal for both homebuyers and Realtors alike.

Sebring Florida USDA Approved Lender List

 

 

 

USDA Loans for Teachers in Florida, Texas, Tennessee, and Alabama! Can a teacher qualify for a USDA loan if they are changing school districts?https://www.usdaloanpro.com/update-usda-loans-for-teachers-in-florida-texas-tennessee-and-alabama/

In today’s video, I will explain how teachers and other professions may be able to qualify for a USDA loan after a contract has been signed, but before a pay stubs has been received!

Also, if you have not yet done so, feel free to download our newest “USDA Blueprint” with the link below. This free guide is designed to help walk you through the USDA process step-by-step and is a great educational resource for both homebuyers and their Realtors alike.

USDA Loans for Teachers in Florida, Texas, Tennessee, and Alabama!

How does a teacher qualify for a USDA loan when changing school districts?https://www.usdaloanpro.com/update-usda-loans-for-teachers-in-florida-texas-tennessee-and-alabama/

There can be tremendous excitement after one has accepted an offer to start a new position, but many times that quickly turns to frustration when trying to coordinate moving, purchasing a home, preparing for the first day on the job, and when the first pay date will be received in order to verify income.

Fortunately, we have worked with these situations before and are able to confirm that USDA guidelines offer flexibility for certain professions where employment is accompanied by a signed offer letter/employment contract along with meeting other terms.

In situations where an applicant is moving to a new employer and has a contract or offer to start employment within 60 days of loan closing, USDA guidelines will permit this scenario to be eligible provided the underwriter determines the applicant has reserves available after loan closing to cover all monthly liability payments and the new mortgage obligation until employment begins.

An example of this situation would be a teacher changing school districts who is staying within the same profession where we are able to document both current and previous employment.

USDA Guidelines

Lastly, because USDA guidelines will require at least one year of employment history in order to use base wages, previous employment history will also need to be verified.

It is common for us to receive questions regarding USDA loans for teachers. However, provided certain requirements are met, it can be possible for a teacher to qualify for a USDA loan if they are changing school districts and also be able to close on a home once a teaching contracts has been signed but before their first pay stub has been receivedTampa FL USDA Approved Lender List #1 Ranked.

Summary

The USDA loan can be very powerful, but make sure you are working in actual USDA Approved Lender that has a proven track record of success to help maximize the benefits of this great program.

As a USDA approved lender, we are here to help. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

 

(800) 806-9836 x280
Call/Text: 863-593-2001
SeanS@MPLX.org

 

Click here to download our USDA Blueprint for Success!

Tampa FL USDA Approved Lender List

What is the Secret to a Successful USDA Loan Process? What are the benefits of working with a USDA Approved Lender in Florida, Texas, Tennessee, or Alabama?

It is hard to believe, but I started Metroplex way back in 2001 and over the past two decades What is the Secret to having a Successful USDA Loan Process in Florida, Texas, Tennessee, and Alabamawe have grown to be a top ranked USDA Approved Lender whom realtors and homebuyers come to for our proven experience and expertise with this powerful program.

We are known for our follow ups, communicating, and closing on time so in today’s video, I will share the processes and systems we utilize to help our buyers and realtors have a successful USDA loan process and once again disprove the myth that USDA loans take too long to close.

However, don’t forget to download our newest “USDA Blueprint for Success” with the link below.  This free resource is designed to walk you through the USDA process step by step and is designed for both homebuyer and realtors alike. Well, what are we waiting for, let’s get started with the details!

What is the Secret to a Successful USDA Loan Process?

As a USDA approved lender, we provide the local competitive advantage needed to help get your offeUSDA Loan Process in Floridar accepted through educating listing agents, financing repairs, USDA No Down Payment construction loans, and quick closing times that are fueled by our in-house underwriting efficiency and demonstrated program knowledge.

1. As a starting point, a proper USDA qualification is the critical foundation needed for a successful loan process and we will help walk you through the qualifying process step by step. A thorough review of income, employment, assets, and credit are key building blocks to having a strong USDA qualification letter.

2. Next, at the time you are ready to place an offer to purchase, we are available to call the listing agent in order to communicate the strength of your offer so that the seller knows they are working with a qualified and deserving homebuyer.

3. Once your offer has been accepted, we will begin your loan application and order the appraisal immediately so that no time is wasted. During this time, we are updating your loan file through our dedicated processing and underwriting systems while at the same time providing weekly status updates to the homebuyer and realtors involved so we can all stay on the same page.

4. Upon receipt of the appraisal, our underwriting team reviews that and the loan approval is updated. Because of the advance work we have already done on the file, we are now in a position to prepare the loan to be submitted to USDA for their review and issuance of the USDA Commitment.

Remember, that because Metroplex is the USDA approved lender, we are approving the loan through our in-house underwriting and handling all of the loan mechanics from right within our office. This streamlined ability provides a consistent one-stop shop for all questions related to the loan process.USDA Approved Lender in Florida, Texas, Tennessee, and Alabama

5. Once the USDA commitment has been received, we are now on the downhill slope towards the finish line with final disclosures being provided to the homebuyer and closing documents being ordered to prepare for yet another smooth and on-time closing powered by the Metroplex team.

Now that I have provided you with a better understanding of the process, we look forward to being your USDA Approved Lender of choice and providing our rural housing expertise so that your next transaction is successful.

We would love to count on you for the referral of that next family member, friend, or client who needs mortgage qualifying assistance.

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

(800) 806-9836 X280
Call/Text: 863-593-2001
SeanS@MPLX.org

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

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

Tampa FL USDA Approved Lender

Is it possible to have USDA Loan Closing Times in Less Then 30 days? Can you close a USDA loan in Florida, Texas, Tennessee, or Alabama in under 30 days? Yes, you heard me correct and that is what you should expect!Can you close a USDA loan in Florida, Texas, Tennessee, or Alabama in under 30 days?

With the market beginning to change from sellers requiring cash or conventional offers, many do not realize how fast USDA loan closing times can actually be! Understanding these details, can help maximize a seller’s available offers while at the same time not sacrifice any closing time when comparing Conventional vs. USDA loan closing times.

In today’s video I will explain how working with a USDA Approved Lender can deliver a streamlined loan process and walk you through how to plan for a USDA loan closing in less than 30 days!

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.

USDA Loan Closing Times In Less Then 30 days!

I have heard it many times, that a seller does not want to take a government loan because it will take too long to close. While I understand that as a potential concern, that is by no means a blanket policy and it is far more important to understand who is providing the financing and gauge the offer’s qualification strength with that lender’s reputation in mind.

Especially with the cash buying frenzy continuing to slow and interest rates on the rise, a flexible seller can only benefit themselves by taking the opportunity to look at all offers, cash, conventional, FHA, VA, and of course USDA Rural Housing.

As a USDA approved lender, our team at Metroplex has built specific procedures to process, approve, and close USDA loans. Through these dedicated systems, this allows us to continually have our USDA loan closing times in less than 30 days!

With that being said, specific advantages can be gained by working directly with an actual USDA approved lender such as Metroplex Mortgage Services.

Can you close a USDA loan in Florida, Texas, Tennessee, or Alabama in under 30 days?

USDA Processing and Underwriting:

USDA Approved lenders have direct access to the Guaranteed Underwriting System (otherwise known as GUS). The GUS Automated Underwriting System is specific for USDA loans and their eligibility. When working with GUS, it provides a roadmap for eligibility, maximum debt ratios, and the all important qualifying limits and sales price range that both Realtors and Homebuyers need to know when shopping for a home.

Reduced Processing Time:

While it is true that there can be more steps in the USDA loan process when compared to a conventional loan, USDA approved lenders are able to work directly with USDA field offices, which eliminates a middle man in the process. The importance of managing the loan file and holding direct communication between our office and any USDA specialists is critical for responding to their questions, supplying additional documentation, or provided a quick clarification when requested.

Additionally, we have built systems specific to the USDA loan process and because we also have the ability to communicate directly with both USDA, the homebuyer, and their Realtors, we are able to streamline the process and thus reduce USDA loan processing times.

Prioritize USDA Loan Specific Documentation:Florida USDA Loan Closing Times In Less Then 30 days!

USDA Rural Development requires specific documents as part of their approval process. We understand the steps needed and are able to prioritize and clear the necessary items needed in order for the file to be shipped to USDA. Then while the file is already in line waiting for USDA review, we can satisfy remaining underwriting conditions and prepare the file while we wait for the USDA commitment to be returned. There are many lenders who still require documentation that is above and beyond what is required before submitting the file to USDA to receive their commitment. Because of our specific USDA lending experience, we know exactly what USDA requires and the format it needs to be delivered in.

USDA Program knowledge and experience:

Another great benefit that goes without saying is the amount of expert knowledge our team holds as a USDA approved lender. USDA loans cover a specific market and it’s incredibly important that lenders know the ins and outs of this unique loan program. A USDA approved lender is better equipped to understand how the program can be maximized for both consumers and the real estate community.

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!

 

Tampa FL USDA Approved Lender

Have You Been Told That USDA Is “Out Of Money”?

Is it true that USDA Why do lenders say USDA out of money? is “Out of Money”?  Well, if you have heard that then this is exactly how rumors get started!

Each year around this time we receive calls asking if USDA is out of money and because there is so much misinformation about this subject, today’s short video will share the facts that you need to know and help set the record straight.

Also, 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 alike!

Have You Been Told That USDA Is “Out Of Money”?

As a staring point, the USDA Single Family Housing Guaranteed Loan Program 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 mean 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.

What is a USDA Conditional Commitment and why is it important?

The USDA Conditional Commitment is “Rural Development’s agreement that a proposed loan will be guaranteed if all conditions and requirements established by Rural Development are met.”

As a USDA Approved Lender we are responsible for underwriting and approving the loan application in accordance with agency guidelines and then submitting the loan package to USDA in order to receive their Conditional Commitment. This is a step that is taken prior to closing and demonstrates that the loan will be guaranteed by USDA provided all conditions and requirements are met.

USDA guidance provides for the following: “During the temporary lapse in funding, Rural Development – Rural Housing Service (RHS) will issue Conditional Commitments (Form RD 3555-18/18E) “subject to the availability of commitment authority” for purchase and refinance transactions.”

What this means it that USDA will continue to issue their USDA Conditional Commitments to approved lenders with the only difference being  that they are “subject to the availability of commitment authority”.

Tampa Florida USDA Loans - Have You Been Told That USDA Is

What does this mean to homebuyers and Realtors?

I know, I know, but Sean, what does that really mean to us?

Quite simply, because USDA issues continues to issues those Conditional Commitments, this permits lenders to continue closing loans on time without interruption. Thus, depending on your lender’s experience and how they are set to do business during this brief time period, it will determine if they are able to continue processing and closing USDA loans without delay.

Just to confirm, if your lender is blaming USDA for a delayed closing, it is not an issue with USDA but instead the lender. If this is the case, it may be time to look for another USDA lender who is experienced and understands the process!

The good news is, that it is business as usual for Metroplex Mortgage Services and we continue to accept applications, process, close, 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. At this point your loan has closed and Steps 5 and 6 below will happen directly between USDA and the USDA Approved lender after closing.
  5. 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
  6. 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;

Schedule your FREE USDA Loan Consultation

Remember, 2nd opinions are always important (especially around this time of year), so if you have USDA financing questions or 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

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

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

Make it a great day and I look forward to seeing you right here again for our next USDA video quick tip!

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

 

Tampa FL USDA Approved Lender

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