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 »
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 »
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 »
Just fired off an email to an Investor inquiring whether USDA had a problem with him having bought the property 3 1/2 weeks ago and reselling it for profit. Of course, answer is **NO**** !! USDA Zero Down (Rural Housing) loans do not have a “Anti Flipping” rule like FHA had. Even FHA has waived/modified it’s Anti-Flipping policy so it’s…… Read More »
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