Category Archive : USDA Zero Down Loans
The USDA home loan (also known as the Rural Development mortgage) in Riverside County California and other areas is getting cheaper! Per a recent announcement, Effective October 1, 2016, both the upfront guarantee fee and the annual fee (paid monthly) will be reduced with USDA mortgages. This new fee structure will remain in place until September 30, 2017, the end…… Read More »
Homebuyers in Temecula, Murrieta and other areas of California can now buy a home with a Downpayment Assistance Grant that does NOT need to be repaid. Yes who read that right. It’s a true grant, not a deferred loan like many other programs. With the Sapphire Downpayment Grant program, California homebuyers can choose to have either 3% or 5% of…… Read More »
You can buy a home in Winchester CA and other areas with zero downpayment, 100% financing using a USDA loan. But getting a USDA loan for purchasing a home in California such as Winchester California can be fraught with difficulties if you don’t prepare well for underwriting. There are several important points you ought to address before applying: 1. List…… Read More »
On March 20, the Senate passed by a vote of 73 to 26 its amended version of the House-passed FY 2013 continuing resolution (CR), H.R. 933. On March 21, the House also passed, by a vote of 318 to 109, the amended version of the CR. The bill now goes to the President for his signature. The FY 2013 Agriculture…… Read More »
Good news, the recent USDA change of Eligibility areas was deferred until March 27, 2013. This means the geographic areas which had been singled out to be eliminated from eligibility for RD502 financing, will remain eligible until at least April 2013. Here’s the entire Notice from the USDA from September, 2012.
There are some sweeping changes coming in the Fall of this year (2011) which will make Mortgage lenders more accountable for the loans they fund and approve; some speculate that this is the part of the reason the USDA has chosen to tack on Mortgage Insurance (just like FHA’s) to the monthly payment. Thankfully, we the tax payers won’t be…… Read More »
Yes! True, according to the USDA rulebook, Borrowers can be ‘able’ to get FHA (or VA) financing, but if they have 20% down for an UNINSURED Conventional loan, they’ve apparently got no business applying for USDA :). Here’s the exact verbiage from the USDA rulebook. (Remember these types of loans were brought in to assist ‘moderate income’ families who didn’t…… Read More »
Deducted from what? From gross adjusted Income, for the purposes of keeping you (the Borrower) below the Income limit for the program. Remember, USDA Zero down loans have income limits which are determined by the entire income of the household. Common deductions we immediately look for are for childcare expenses, minors living at home, full time students living at home,…… Read More »
Today I had to confirm with my USDA Underwriter that a Veteran based out in Kansas could purchase an *OWNER OCCUPIED* home here in California using the USDA Zero Down loan. And as I indicated, the answer was yes. USDA doesn’t disallow Veterans stationed in other States from purchasing where their family is. Of course I had to furnish my…… Read More »
It appears USDA has tightened up their requirements for “GUS”. (GUS stands for Govt Underwriting System and is the automated engine for USDA just like DU/LP is for FHA etc . . ) FICO scores below 640 will receive a “REFER” and will need to be manually underwritten by the Agency. Borrowers must have three major compensating factors and proof…… Read More »
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USDA Guidelines & Rules / USDA Income Eligibility / USDA Property Eligibility / USDA Zero Down Loans 
