Posted by
admin on Apr 17, 2009 in
Buying,
Finances,
Housing,
Real Estate In the past few months we have written a lot about the different home loans available to the home buyers, specifically, FHA loans and the different benefits of this mortgage product. But we have also written about the tightening of requirements in the mortgage industry, especially with the Freddie/ Fannie Conventional loans.
We have previously highlighted another type of conventional loan that requires NO down payment, NO monthly PMI, where the seller is allowed to pay all reasonable closing cost and prepaids, and NO hit to the rate for the zero down, it is NOT a first time home buyer program and no reserves needed.
But did you know that this particular mortgage also has a unique feature that all reasonable closing cost and prepaids can be rolled into the mortgage without the seller actually having to “pay” the cost (as long as the house appraises for the increased loan amount)? Why is this a good thing? We have had buyers who have submitted offers for homes that included seller concessions for the home sellers to help with the closing costs, only to have those offers rejected. Now buyers have another option and are not at the mercy of the homes eller. It is a conventional loan that has these great options and it is government backed loan (like FHA loans) but is backed by the USDA.
The downside of this loan is that tt is area-specific and income-limited, so it is important that you work with a lender who is very knowledgeable with these loan guidelines. If you are interested to find out which areas are eligoible for USDA loans, click here.
If you need help in finding a knowledgable lender or to better understand how this loan can be of benefit to you, or just give you some assistance with your home search and loan pre-qualification steps, simply call us at 609-417-1084 or email us at info@i-teamhomes.com
.
Tags: government backed loans, mortgages, no downpayment loans, usda, usda rural loans
We’ve just been informed of a new mortgage loan program available to New Jersey Home Buyers. The mortgage loan program is called USDA Rural Development 502 Guaranteed Housing Loan Program and has the following special advantages*:
- No Down Payment
- No Mortgage Insurance
- No Cash Reserves Required
- No stated maximum loan amount; maximum loan based on repayment ability
- Loan up to 102%** of appraised value allowed
- No First Time Homebuyer Requirement
- New and Existing Homes OK
- Fully amortized 30-year fixed rate loan
- No Prepayment Penalty
- No Seller Contribution Limit
- No limitation on source of funds for closing costs
- 100% gifted closing cost or down payment assistance is permitted
- Loan amount can include closing costs and repairs up to appraised value
- While an RD GRH loan is not FICO Score driven, RD does reward you for higher scores. Borrowers with a score of 620*** mid-score or higher get an automatic “Credit Waiver” and do not need to explain credit derogatory including bankruptcy and no rental verification is required (see Note 1).
The 502 Guaranteed Mortgage Loan is a guaranteed loan secured by Rural Development is made by an approved mortgage lender to a borrower who is unable to qualify fully for a conventional loan because of substantial down-payment requirements.
If you’d like to know more about this and what areas in New Jersey are eligible for this loan, please contact us at 609-417-1086.
* To qualified borrowers
** Appraisal may be exceeded by amount of Gauranteed Fee
*** FICO score may be adjusted upwards by the Agency
Note 1: Exception – Any applicant with delinquent Federal debts, regardless of credit risk score and any applicant with an unsatisfactory payment history on a previous Rural Development loan, regardless of credit risk score. For general information purposes only. Loan approval subject to Lender underwriting guidelines and RD regulations 1980-D and applicable ANs.
Tags: bankruptcy, buyers, home buyers, mortgage loans, mortgages, usda
Stumble It!