Hurry! USDA Rural Home Development loan program (no PMI, 2% fee into loan) zero down

[liverichly]

USDA Rural Development loans have two different eligibility requirements you must first meet. The first is geographic and the second is income.

http://eligibility.sc.egov.usda.gov/...?NavKey=home@1 is the website where you would check both. For property location eligibility just click "single family housing" under "Property Eligibility" on the left. For income eligibility, the only link in that category.

It's a great program, rates are about the same as FHA, a little more strict on debt to income ratio & credit (not by much), and it's limited to certain types of homes (no resale manufactured homes, no homes with pools unless certain conditions exist, etc.). No minimum score per se but 620 definitely helps get things through underwriting with greater ease, with a 660 things are a breeze.

[liverichly]

Did you buy a home in a rural area? I did a search and couldnt find anything is my area of so.ca.

Check the link above I just posted. I live in Orange County and there aren't a lot of eligible locations near the urban/suburban but if you go out towards Riverside/Santa Bern. County and high desert Los Angeles, and parts of San Diego, there are plenty eligible.

[Stilltheone]

Thanks for the link!

I'll definitely have to save it.

We plan on building a house in the next 2 years and our area and income meet the eligibility requirements!

[EndInSight]

Gosh this site just keeping giving great information!

Here I am in the mist/fog of a USDA home purchase and was also wondering and NEEDING info on PMI & MIP.
It's added into the final costs................I'll report back in what I find..........

So thanks guys for always being there............funny thing, Googled.....PMI & MIP and first to POP UP........was this thread!

Very COOL!

Miss Posh

[fltoo]

Also, my husband was told today that he could have been charged a point, but the mortgage guy won't. Should we celebrate?? LOL What is your take on this?

Wish I could tell you the broker did it to be nice, but, the reality is, he probably did it to make the loan work. LOL

An "origination" point, 1% of the loan, is the broker's payment for processing the loan. A "discount" point is 1% paid to the bank to lower the interest rate about 1/4%. If the loan is not happening the broker will start looking for cash savings to the buyer and his fee is one area that can be cut.

Keep in mind that you can also negotiate some processing fees with lawyers and title companies doing your closing.

[moneytree]

Update: the sellers brought almost 40K to closing, I guess to save their credit. As awful as that sounds, $40K must have been a wash for them. They lucked out with us coming along to buy their home (as other's sit and sit...and similar models aren't selling), so they avoided a short sale/foreclosure. They had it on the market for over a year and hardly lived here. We did find the furnace filter was filthy and the house had a dusty smell for a good week, but it's all fresh now. It feels so great to cancel my fico subscription and focus on taking care of a home, instead of living in someone else's home and paying their mortgage. Happy Holiday's everyone!

Good info on the 'point' and glad it's been helpful info to other's.

[apn2009]

Anyone have more info about this loan. I am almost 19 months past bk7 d/c and want to buy in a rural area in May. I know my score are low now. I would love to know if I had a chance this sounds great especially no money down.

[EndInSight]

USDA......(have to vent).....A GREAT PROGRAM (btw)

and a short sale...........I have been in turmoil since before Christmas.

Made the offer on the 2nd of October, it was accepted by seller and who ever else that needed to agree.
Two offers were rejected because they asked for closing costs. I did not.
My FICO was sitting at 600 to mid 700's This is post C13....it averaged out about the same, pre.

Okay so on to the appraisal which came in 35K over my offer. I WAS so excited.......key word there..."was".

This has been in limbo since right after the appraisal so much so that I let make me physically ill. Even to the point of missing work.

It went to underwriting and I swear to god that they are using me as a test case. About the only thing they have NOT asked for, is a blood sample. Proof of this.....Proof of that........and on and on....AND....on.

Rumor has it that it will closed by mid week...1-07-09.
This property goes to auction on 1-10-09.

Time has been of the essense since I gave official notice to vaccate by 12/31/08, the required 20 days. Closing had been scheduled for before Christmas.

Yup, I just sent off a check for this month. I called the L.L's last week to explain before sending. Got a "duh what"............??

L.L.'s show up in person this afternoon and want to know IF I am staying forever or what??? I explain again, they both had blank looks.....(they are not the sharpest knives the drawer)....."THAT'S ALL FOLKS!"

Thank you for being SO understanding.......I should gone by the of the month? (wonder if I'll see an evction notice?)

The lenders are being cautious because of ALL lending mistakes of the past.

Moral of vent................even IF your purchase is not a short sale...........hang in there.

Oh and could ya'll X your fingers for me?

Thanx
Judy
5.5% fixed btw

[EndInSight]

Anyone have more info about this loan. I am almost 19 months past bk7 d/c and want to buy in a rural area in May. I know my score are low now. I would love to know if I had a chance this sounds great especially no money down.

Oh....sorry, got carried away and forgot your question......Just do a search and go from there. USDA is nationwide however the tax rebate/loan or what ever.......goes away mid July 09, so you have til then. I am not sure IF I will apply since IT IS A LOAN not a gift.....as it should be IMHO

Find a realtor ...an experienced one........good luck!

Miss Posh

[DisneyGirl]

and a short sale...........I have been in turmoil since before Christmas.

Made the offer on the 2nd of October, it was accepted by seller and who ever else that needed to agree.
Two offers were rejected because they asked for closing costs. I did not.
My FICO was sitting at 600 to mid 700's This is post C13....it averaged out about the same, pre.

Okay so on to the appraisal which came in 35K over my offer. I WAS so excited.......key word there..."was".

This has been in limbo since right after the appraisal so much so that I let make me physically ill. Even to the point of missing work.

It went to underwriting and I swear to god that they are using me as a test case. About the only thing they have NOT asked for, is a blood sample. Proof of this.....Proof of that........and on and on....AND....on.

Rumor has it that it will closed by mid week...1-07-09.
This property goes to auction on 1-10-09.

Time has been of the essense since I gave official notice to vaccate by 12/31/08, the required 20 days. Closing had been scheduled for before Christmas.

Yup, I just sent off a check for this month. I called the L.L's last week to explain before sending. Got a "duh what"............??

L.L.'s show up in person this afternoon and want to know IF I am staying forever or what??? I explain again, they both had blank looks.....(they are not the sharpest knives the drawer)....."THAT'S ALL FOLKS!"

Thank you for being SO understanding.......I should gone by the of the month? (wonder if I'll see an evction notice?)

The lenders are being cautious because of ALL lending mistakes of the past.

Moral of vent................even IF your purchase is not a short sale...........hang in there.

Oh and could ya'll X your fingers for me?

Thanx
Judy
5.5% fixed btw

I'm so sorry for what you're going through. Sounds like us last year at Christmas. We were supposed to close 12/27. We signed the papers on Jan. 22nd after so much stress I thought I was going to lose it. Nothing that had to do with us either. Our broker was a slow, lazy slug of a man! We had to ask our landlord for an extension since we'd given notice. He reluctantly gave us one but it cost us more $$ of course. In the end we got it done and have been living in our lovely new home for almost a year now. Good luck and it'll all be done soon!!!

Oh and since we bought new construction, Centex sent us a survey when it was done. We wrote about what our broker put us threw and for our troubles they sent us a $200 Home Depot gift card and an apology.

[EndInSight]

Gosh this site just keeping giving great information!

Here I am in the mist/fog of a USDA home purchase and was also wondering and NEEDING info on PMI & MIP.
It's added into the final costs................I'll report back in what I find..........

So thanks guys for always being there............funny thing, Googled.....PMI & MIP and first to POP UP........was this thread!

Very COOL!

Miss Posh

Neither is needed...........I am including AARP homeowners into my payment............actually the lender requires it be done that way BUT I am using my own policy thru AARP.

[EndInSight]

I'm so sorry for what you're going through. Sounds like us last year at Christmas. We were supposed to close 12/27. We signed the papers on Jan. 22nd after so much stress I thought I was going to lose it. Nothing that had to do with us either. Our broker was a slow, lazy slug of a man! We had to ask our landlord for an extension since we'd given notice. He reluctantly gave us one but it cost us more $$ of course. In the end we got it done and have been living in our lovely new home for almost a year now. Good luck and it'll all be done soon!!!

Oh and since we bought new construction, Centex sent us a survey when it was done. We wrote about what our broker put us threw and for our troubles they sent us a $200 Home Depot gift card and an apology.

Gosh, thanks for the ray of hope!

This is not a new home however it sits on a .25 corner lot in a great school district.
My GDaughter will have her FIRST bedroom albeit small but with room to grow.
Man, I hope I am NOT jinxing myself...........getting all excited again!
Judy

[afieldwest]

Which lenders for USDA

I have been trying to get a lender to take my USDA loan.......I'm 11 months out of my Chapter 7 discharge........I've since reestablished credit, have over a 650 score but can't find a USDA lender! Chase and National City declined me due to my BK. Who have you people been using for the lender???

[moneytree]

We have www.taylorbean.com

There were 2 lenders who worked w/ people less than 2 yrs out of bk (we were almost 2 yrs) and we were even declined by them, but once we proved our income, we were approved. It took a lot of hard work by our broker though! He is SUPER!

We've tried to call Taylor Bean up and they are impossible to reach. They also do not return phone calls or emails. Nasty sons of a b's. But we will continue to make our pymt and so we won't have any issues with them. I googled them and lots of complaints, even lawsuit threats, but those people were late, and the biggest complaint was that TB&W would return their pymt if not paid to current, creating even more late fees. Or they are quickly putting homes into foreclosure.

HHM....have at it!

BUT...but ...but....we have our home and looking fwd to the $15K tax credit that I am also hearing won't have to be paid back. Any help on this is much appreciated!

[afieldwest]

Who were the lenders?