Vancouver Washington Real Estate Information

USDA 102% Rural Housing Loan

Posted on January 6, 2009
Filed Under Home Loans, Homebuyers | 7 Comments

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.

Free: Home Loan Finder Service

Posted on January 5, 2009
Filed Under Home Loans, Homebuyers | 2 Comments

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

Home Loans with Zero or Very Low Down Payment

Posted on January 5, 2009
Filed Under FHA Home Loans, Home Loans, VA Home Loans | Leave a Comment

Learn How to Purchase a Home with Zero or Very Low Down Payment.

Currently there are several home loan programs available for 1st time home buyers and move up buyer to purchase with zero or low down payment and market interest rates.

These loans do not have pre-payment penalties so common in the sub-prime era. In fact, the FHA insured loan is now the most popular loan being used for home purchases.

FHA Loans – 3.5% Down Payment and seller can credit up to 6% of the purchase price towards recurring and non-recurring closing costs.

VA Loans – Zero Down Payment. Seller can contribute towards closing costs

USDA – 102% loan, seller can contribute towards closing costs. Cash toward repairs if home is appraised higher than purchase price. Many areas qualify. Call for details. For example: Battle Ground and Ridgefield cities are in the eligible area.

Apartment Dwellers – Renters – Now is the time to purchase!

Posted on January 5, 2009
Filed Under Homebuyers, Real Estate News | Leave a Comment

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.