102% USDA Home Loan Program

(*Rural Development Loan, Rural Home Loan, USDA Loan, Rural Development Guaranteed Rural Housing, Rural Housing Loan)

Benefits:

• 102% financing based on appraised value – rather than based on purchase price. (could allow a certain amount to be financed toward home repairs)
• 30 Year Fixed Rate Mortgage
• Refinance:  Yes – rate reduction only – no cash back.  Only GRH and 502 direct loans)
• MI – No monthly mortgage insurance.  Upfront guarantee fee of 2%.
• Reserves:  No payment reserves
• Downpayment: No down payment
• First Time Homebuyer – No first time home buyer requirement
• Seller Concessions – No Maximum – over 6% requires comment from appraiser
• Gifts – 100% gifting permitted. Donor must be disinterested third party

Debt to Income Ratio

• Ratios – 29/41 – exceptions encouraged with compensating factors and RD concurrence
• Non-occupant Co-borrower: Non-occupent co-borrowers not permitted unless approved by RD
• Installment Debt – Include all installment debt greater than 6 months
• Primary Income – Two-year history
• Self-employment – Two years 1040’s and P&L
• Alimony/child support – 12 month history with proof of 3 years continuance
• Part time, Overtime & Bonus – 12 month history
• Disability benefits – Benefits letter, 3 years continuance and gross up 125%
• SSI benefits – Awards letter or 2 months bank statements, 3 years continuance and gross up 125%
• Salary increases – Salary increases within 60 days of the first payment due date are acceptable
• Maximum Income – US RD Moderate Income Limits

Credit

Credit Score – No minimum credit scores

Late payments – 1 x 30 permitted in last 12 months with explanations – Exceptions may be granted with 620 or greater middle credit scores

Bankruptcy / Foreclosure – Chapter 7 and 13 must be discharged for 3 years – Foreclosures must be completed 3 years ago – exceptions may be granted with 620 or greater middle credit scores.

Collections – Accounts cannot have been placed in collection status within the last 12 months – Exceptions may be granted with 620 or greater middle fico scores.

Judgements – Must be paid off for at least 12 months – Exceptions may be granted with  620 or greater middle fico scores.

Verification of Rent – If middle credit score is lower than 620 a VOR is required for the most recent 12 months.

Previous Housing Payment – not required

Non-traditional credit – Acceptable if no credit is available

Credit report – RMCR or Tri-Bureau merged

Homebuyer education – Case by case or when required by RD

*various terms are used in reference to the 102% USDA Home Loan, however, the loan referenced in this post is the 102% usda loan by the USDA – Rural Development Guaranteed Rural Housing Home Loan Program.

Gain access to our Free Home Loan Finder Service.    We will match you to a home loan program that fits your needs in order to purchase a Bank Owned Home or Short Sale with Zero Down Payment or Very Low Down Payment and low monthly payments.

Many lenders claim to offer low down payment programs but often times you are charged a very high interest rate with very high fees.    Not here.  Our goal is to help you obtain a Government backed home loan with a very low interest rate and zero or low down payment.

We will even teach you how to get sellers to pay all of your closing costs.  Often you will be able to purchase a lovely 3 or 4 bedroom home with Zero Down Payment and Zero Closing Costs.

Fill in our contact for below to access our Free Home Loan Finder Service

Now is the time to purchase a home!

There are a number of factors leading up to the concept that a bottom may be forming in many housing locations.   The notion is that unless a metropolitan area has not dropped at least 40% in value than they have not seen the bottom yet.   Well, that may be true for many areas of the country that had rapid expansion and lot’s of speculators.  But, I am not sure this theory holds thru across each and every community.

Here are some tidbits to chew on:

Record drops in home inventories

Inventories could drop by 600,000 in 2009 depending on extent of household formation.

Mortgage Market’s gains stick

Rates are dropping, refi’s are up, and mortgage backed securities are trading well.

As the builders sell off their standing inventory the demand for new homes will increase.  This will be good for home builders that have not filed for Bankruptcy and closed their doors.  Also, the standing inventory of unsold existing homes will decline as well as various areas of the country hit a bottom and the homes are sold.

With the very low interest rates on the market today and the great deals to be had from banks and short sales is it any wonder that buyers see this as a golden opportunity to purchase the home of their dreams.

Credit Suisse has estimated the the mortgage payment on a median priced home is now 16.7 percent of median household income.  Compared with 21% just this summer.  It is also below the average of 23% between 1981 and 2007. During 2006-2007 the average mortgage payment went as high as 37% of the median income.

Also, they have noted that foreclosure prices in the heaviest hit areas have stabilized possibly indicated a bottoming out in those areas.

Sharply lower rates boost home affordability

So, all this adds up to:    Fill in our form below to find out how much home you qualify for.  There are 1st time and move-up buyer loan programs available.   FHA is the hottest loan right now for purchases while a VA loan is appealing to Veteran’s who don’t want to put any money down since a VA home loan is a “zero down payment” loan.   Also, we have the 102% USDA loan program which has income restrictions and geographical restrictions, however, it is more liberal than you might think.  So, check out that program as well.  For instance, all of Ridgefield and Battle Ground is elibible for the USDA loan program.

Private investor has several free and clear lots to trade for down payment (reduction in purchase price) for home in Clark County under $240,000

Deal Maker Form By submitting this form you are authorizing vancouver-home.info to forward your contact information to the party who has posted their deal and you authorize that party to contact you. Make sure to reference the “deal #” in your message so I can match your request to this deal.

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This area is for buyers and sellers to come together and meet each other.  To share what your real estate needs are.  Kind of like a forum but thru blog posting and commenting.

We will probably have to experiment with this a few times to find out the best system but let’s try this for now.   If you are a real estate buyer or seller fill in the form below and state what your deal is.

For example:    I would like to buy a home that is (such and such)  or I would like to sell a home that is (such and such).     Than, I will create a blog post only putting in your request but will not include any names or contact information.

Than, the blog readers who are interested in the “deal” could fill in the contact form and request to have the “deal maker” contact you by providing them your contact information.

*Notice to real estate agents and real estate brokers -  we love you – but, this section is not for you unless you have a deal.  Otherwise, the buyer or seller are private parties and they are choosing to deal directly with each other without representation.  If they choose that it will be on their own accord.    The “deal maker” will probably “google” the contact name before calling to verify it is not a real estate agent trying to solicit their business.

If you are a real estate agent and are interested in the “deal” for private purposes and not for commercial purposes than please disclose your licensing so that the “deal maker” will know it is okay to contact you and they won’t be hit over the head with a sales pitch.

Deal #1 – Investor is seeking….

FHA Loan Limits – 2009 – Washington State Counties

Beginning in 2009 there are new FHA loan limits that loan agents and real estate agents need to be aware of.  This will affect borrowers you are currently working with.   If they are searching for a home with 2008 loan limits you will need to advise them of the new lower fha loan limits for 2009 as this will have a bearing on their purchase price.  Remember, the loan limit is not the purchase price.      When you factor in the 3.5% down payment you can adjust your purchase price upward so that you end up within the loan limit guidelines.

County 1 Unit 2 Units 3 Units 4 Units

Adams County $368,000.00 $471,100.00 $569,450.00 $707,700.00
Chelan County $342,700.00 $438,700.00 $530,300.00 $659,050.00
Clallam County $296,700.00 $379,800.00 $459,100.00 $570,550.00
Clark County $362,250.00 $463,750.00 $560,550.00 $696,650.00
Douglas County $342,700.00 $438,700.00 $530,300.00 $659,050.00
Island County $316,250.00 $404,850.00 $489,350.00 $608,150.00
Jefferson County $322,000.00 $412,200.00 $498,250.00 $619,250.00
King County $506,000.00 $647,750.00 $783,000.00 $973,100.00
Kitsap County $307,050.00 $393,050.00 $475,150.00 $590,500.00
Pierce County $506,000.00 $647,750.00 $783,000.00 $931,100.00
San Juan County $483,000.00 $618,300.00 $747,400.00 $928,850.00
Skagit County $295,550.00 $378,350.00 $457,350.00 $568,350.00
Skamania County $362,250.00 $463,750.00 $560,550.00 $696,650.00
Snohomish County $506,000.00 $647,750.00 $783,000.00 $931,100.00
Thurston County $293,250.00 $375,400.00 $453,750.00 $563,950.00
Whatcom County $304,750.00 $390,100.00 $471,550.00 $586,050.00

Do you have a home loan finance scenario or real estate related question you would like to get an answer for? Just fill in our contact form below to receive a free and timely answer to your question.

Most surveys indicate that over 85% of real estate searches begin on the internet.   So, you want to make sure that your real estate agent is utilizing the internet to the fullest extent.  You want to know how well their website is optimized for the internet and if they actively use social networking sites, video and other popular internet tools to help get your home the  most exposure.

Today, buyers turn to the internet to research homes for sale, demographics, loan programs and such.  So, it is important that your home is priced right and that your agent is actively marketing your home for sale using the most advanced and cutting edge web 2.0 platforms on the internet to increase their change of buyers finding your home listing.

Vancouver Home Buyers should be motivated by this morning’s news.   House prices have dropped for the sixth month in a row and prices are dipping according to a report by Fox News

There are plenty of 1st time homebuyer mortgage loan programs on the market which enable a home buyer to purchase a home with zero or a low down payment.

Also, with the recent influx of foreclosed properties there are opportunities to get real good deals while negotiating with the banks who own the properties.   They won’t “give” the property away but they are business people and will consider reasonable offers.