Eligible areas will not change until at least October 1, 2014!

When the 2010 Census maps were drawn up, and analyzed, many communities across the US were scheduled to lose their “rural” designation based on updating the USDA eligibility map.

I’ve personally spoken to a number of first time home buyers who have been told they have to go with an FHA Mortgage due to the uncertainty of what areas will remain eligible for the USDA Mortgage program.

They’ve been told things like the area isn’t going to qualify after October 1st, 2012 or my favorite lie, the interest rate on a USDA Mortgage is going to be higher than an FHA Mortgage. This is absolutely false. Even if it were true, you would still end up with a lower monthly mortgage payment because the monthly mortgage insurance on a USDA Mortgage is substantially cheaper than an FHA Mortgage.

I have great news! I just received the following email.

January 24th, 2014

Census Eligibility Maps

Barring Congressional action, USDA will begin using 2010 Census data to determine eligible rural areas for Rural Development housing programs on October 1, 2014.  Changes to eligible areas can be viewed by selecting the applicable program listed under “Future Eligible Areas” at http://eligibility.sc.egov.usda.gov.

NOTE:  Complete applications received prior to October 1, 2014, will continue to use the existing eligible rural area definitions based on 2000 Census data.

So this means the eligible areas will not change until at least October 1, 2014!

If your lender or real estate agent is telling you that you can not use a no money down USDA Mortgage to buy your home because of the eligibility concerns, it’s time to find a new lender. Don’t let your lender or agent pressure you into an FHA Mortgage or some other program that doesn’t benefit you just so they can meet a closing date. A USDA Mortgage is going to give you a lower monthly payment and a low 30 year fixed rate so take advantage of it while you can.

Feel free to call us at (877)228-9069 or contact us by using the form below for more information.

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Unfortunately The USDA has been affected by the government shutdown.

When the government shuts it down, they shut all of it down. The screen print below shows the USDA website is off line due to the government shut down. This pretty much tells you USDA is closed until the government figures out a new spending bill. If you applied for a USDA Mortgage and did not receive a loan commitment from USDA prior to the shutdown, you won’t until the government resumes normal operations.

Here’s what doesn’t make sense, FHA & VA are both still functioning so why not USDA or at least leave the web site active?

The good news is there are still resources available if you have questions regarding the no money down USDA mortgages during the government shutdown. You can call me at (877)228-9069 for more information or help.

Government Shutdown

Today’s USDA Home Loan Rates For October 19th, 2012

USDA Program Updated Rates

*Please note that USDA loan rates are subject to change daily.*

*We now have credit score tier specific USDA Mortgage Rates!*

*All USDA loan rates posted are based on 30 day locks. *

*Please note that the USDA home loan rates posted are subject to adjustments for the following criteria*

1) Loans under $100,000.00.

2) State specific adjustments.

Please call for additional USDA Mortgage Rate options.

If you have any questions or you would like to get pre-approved for a USDA mortgage please feel free to fill out the form below or call us at (877)228-9069.

Please remember to check your spam folder for important emails from us!

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Compare Today’s USDA Rates with Today’s FHA Rates and Today’s VA Rates

Today’s USDA Home Loan Rates are effective June 20th, 2012 and are subject to change without notice. Information provided is solely for use by licensed real estate agents, builders and consumer use but not for distribution. Rates and APR are accurate as of date shown above and subject to change without notice. *APR and rates are based on $200,000 loan amount and 30 day rate locks.

When the 2010 Census maps were drawn up, and analyzed, it showed  many communities across the US were scheduled to lose their “rural” designation based on updating the USDA eligibility map and that would cost them the  opportunity to qualify for the No Money Down USDA Mortgage starting October 1, 2012.

I’ve personally spoken to a number of first time home buyers who have been told they have to go with an FHA Mortgage due to the uncertainty of what areas will remain eligible for the USDA Mortgage program.

They’ve been told things like the area isn’t going to qualify after October 1st,2012 or my favorite lie, the interest rate on a USDA Mortgage is going to be higher than an FHA Mortgage. This is absolutely false. Even if it were true, you would still end up with a lower monthly mortgage payment because the monthly mortgage insurance on a USDA Mortgage is substantially cheaper than an FHA Mortgage.

I have great news! I just received the following email.

Action Alert

September 26, 2012

USDA Extends Rural Definition Until March 27, 2013

Dear Rural Advocates,

Yesterday, USDA issued a notice to all local, state, and national Rural Development staff instructing them to continue to use the current “rural” definition until March 27, 2013, and postponing implementation of data from the 2010 Census data until that time. This notice applies to all Rural Development programs, including those administered by the Rural Housing Service, the Rural Utilities Service, Rural Business Service and the No Money Down USDA Mortgage!

The new deadline–March 27, 2013–coincides with the expiration of the FY13 Continuing Resolution. This is a important victory for all rural advocates because it allows us to continue to work with Rep. Fortenberry to find a long-term solution to this issue when Congress returns to Capitol Hill after the November elections.

The notice also includes changes to the data USDA will use to verify income eligibility. Because the 2010 Census–and future Censuses–does not ask participants about their incomes, USDA will begin to use the 5-year American Community Survey estimates to determine income eligibility standards for the No Money Down USDA Mortgage. So this means the eligible areas will not change until at least March 27th, 2013.

If your lender or real estate agent is telling you that you can not use a no money down USDA Mortgage to buy your home because of the eligibility concerns, it’s time to find a new lender. Don’t let your lender or agent pressure you into an FHA Mortgage or some other program that doesn’t benefit you just so they can meet a closing date. A USDA Mortgage is going to give you a lower monthly payment and a low 30 year fixed rate so take advantage of it while you can.

Feel free to call us at (877)228-9069 or contact us by using the form below for more information.

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Feel free to call us at (877)228-9069 or contact us by using the form below for more information.

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USDA Mortgage Funding Update – 9/26/2012!

Back on August 21st, 2012, I posted an update regarding the availability of USDA Mortgage funding for refinance transactions. See that post by clicking the link below.

http://usdamortgageonline.com/usda-refinance-funds-have-been-exhausted-for-fiscal-year-2012/

I am pleased to announce that we are again closing and funding ALL USDA Mortgage loans using the Conditional Commitments from USDA!

USDA Rural Housing Funding Update

USDA Mortgage Online is pleased to announce that USDA Rural Development has authorized the issuance of Conditional Commitments for the Single Family Housing Guaranteed Loan Program so we can continue to close and fund USDA Mortgages even though most lenders have suspended the program.

This means we will continue to close and fund new USDA Mortgages while other lenders wait for more money to be appropriated to the Rural Development program! If you thought you missed out on buying a home with a USDA Mortgage, think again! We are still accepting, closing and funding USDA Mortgages!

We are excited to continue to offer our customers access to this excellent program.

Feel free to call us at (877)228-9069 or contact us by using the form below for more information.

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Please see our latest update on USDA Funding here:

http://www.usdamortgageonline.com/usda-mortgage-funding-update-9262012/

USDA Refinance Funds Have Been Exhausted for Fiscal Year 2012!

August 21, 2012

USDA Mortgage Purchase and Refinance Funding Update

This announcement is to inform you of the current commitment authorities available for the Single Family Housing Guaranteed Loan Program (SFHGLP) loans.

Due to a change in Fiscal Year (FY) 2013 fee structure which goes into effect October 1, 2012, Lenders are urged to check with States to determine application processing time frames before underwriting applications.

 USDA Mortgage Refinance Funds:

FY (fiscal year) 2012 USDA Mortgage refinance funds have been exhausted.

We expect to run out of refinance commitment authority no later than Monday, August 20, 2012.  When USDA Mortgage refinance commitment authority is exhausted, refinance loan requests for which a conditional commitment (Form RD 1980-18) has not been issued will be returned to the lender and require underwriting under the fiscal year 2013 fee structure.  The FY 2013 fee structure will require a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.  At this time, the Agency will not issue conditional commitments “subject to” receipt of FY 2013 funding or commitment authority.

USDA Mortgage Purchase Funds:

Lenders are urged to be cognizant of the differing backlogs and processing time frames from state to state.  If it is determined unrealistic that the State will be able to review the USDA loan guarantee application and issue a conditional commitment before September 30, 2012, lenders are urged to underwrite the USDA Mortgage application at the FY 2013 fee structure.  The FY 2013 guarantee fee structure will require purchase and refinance loans to carry a one-time upfront guarantee fee of 2 percent and an annual fee of 0.40 percent.

In addition, if the state where the property is located is experiencing longer processing time frames, lenders should advise the applicant accordingly when discussing interest rate locks and potential loan closing dates.

For questions regarding this announcement please call (877)228-9069.

USDA Mortgages and Student Loans, What You Need To Know

STUDENT LOANS AND DEBT-TO-INCOME RATIOS: 

Income Based Repayments and Deferred loans

Student loans are long term liabilities that must be included in the debt ratio calculation per USDA Mortgage Instruction 1980-D, section 1980.345(c).  Because some student loans are not on fixed payment plans, the repayment amount due may increase or decrease without regard to additional liabilities incurred by the borrower.  Therefore an accurate monthly liability amount for this payment must be included in the debt ratio when qualifying the applicant for a USDA Mortgage obligation.

All student loans must have documentation to verify the current payment due (e.g. letter from a loan servicer, online account verification, etc.).  Verifications are valid for 120 days, 180 days for new construction.

Student Loans:  Conventional/Fixed Payment/Deferred:

·         Lenders may review the account statements and use the fixed monthly payment due (no adjustable payments).

·         Deferred student loans that are not in repayment status must use an estimated payment of 1% of the loan balance, or a verified fixed payment provided by the loan servicer to document the payment that will be due.

Student Loans:  Income Based Repayment (IBR):

·         IBR amounts are not fixed payments and may increase annually.

·         IBR payments of $0 are not eligible to be used in the debt ratio.

When an applicant provides documentation of an IBR agreement and payment from the loan servicer the following apply:

1.      If the IBR payment is less than $100 and 1% of the total loan balance is more than $100, a minimum payment of $100 must be included in the debt ratios.

2.      If the current IBR payment is over $100, lenders may use that payment amount in the debt ratios.

August 1, 2012

Advance Notice:  Changes to the USDA Mortgage Upfront Guarantee Fee and the monthly mortgage insurance Annual fee

Effective on October 1, 2012, the start of Fiscal Year (FY) 2013, Rural Development will revise the Up-Front Guarantee Fee and the monthly mortgage insurance fee structure as follows:

Up-Front Guarantee Fee

Annual Fee

The FY 2013 fee structure is applicable to all Conditional Commitments (Form RD 1980-18, “Conditional Commitment for Single Family Housing Loan Guarantee”) issued by Rural Development on or after October 1, 2012.  Loan guarantee requests submitted to Rural Development by September 30, 2012, in which a Conditional Commitment has not been issued, will be subject to the FY 2013 fee structure.

Lenders are encouraged to plan for the changes noted and should keep in mind that some Rural Development offices are experiencing extreme backlogs in loan guarantee delivery.  There are no exceptions to the FY 2013 fee structure. Therefore, starting on October 1, 2012 all Conditional Commitments will be subject to the FY 2013 fee structure, regardless of the date the request was received by Rural Development.

The FY 2013 fee structure is only applicable to Conditional Commitments issued on or after October 1, 2012, Conditional Commitments issued by Rural Development prior to this date are not subject to the new fee structure.