June 28, 2011

USDA 3.50% Guarantee Fee

One of the most frequent questions that come up when discussing the USDA Loan program is the 3.50% fee that appears on the good faith estimate. USDA Loan are a "budget neutral" loan program offered through the U.S. Department of Agriculture.
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June 6, 2011

USDA Loans and Previous Foreclosure

As the first wave of homeowners that were impacted by the foreclosure crises in 2006 and 2007 start reentering the housing market special attention needs to be given to when these borrowers are eligible for their new loan. USDA Loans guidelines allow a perspective borrower to have had a foreclosure as recently as three years prior to the new loan application being taken.
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May 19, 2011

When a USDA Loan Amount Can Be Greater Than the Purchase Price

One of the little known facts of the USDA Loan program is that, under certain circumstances, the closing costs can be included in the final loan amount. This option is available when the appraised value exceeds the purchase price, then this variance can be used to cover the closing related costs of the loan. No other loan program on the market allows for this optional increase.
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May 1, 2011

USDA Loans and Swimming Pools

For years properties that included an in-ground swimming pool were deemed ineligible for a USDA Rural Development Loan. This guideline has recently been loosened to include properties with an in-ground pool provided that the USDA Loans isn't used to finance the portion of the property's value attributed to the pool.
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April 18, 2011

The Affordability Gap Between USDA Loans and FHA Loans Widens

On April 18, 2011 FHA increased the Mortgage Insurance or MI on all FHA insured loans .25% across the board. This represents the second increase since October 2010, in which the ratio used to calculate FHA monthly mortgage insurance premiums has more than doubled from .50 to 1.15.
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February 1, 2011

Completion of the 2010 Census Impacts USDA Eligible Areas

USDA Loans are available in rural areas and suburban communities with population densities of 10,000 people or less per census track. With the completion of the 2010 Census, some areas that were once considered eligible based on USDA Rural Development Guidelines, have been updated to reflect population density increases and are no longer eligible for a USDA Loan.
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January 7, 2011

Understanding the USDA Rural Development Loan Program in Less Than Five Minutes

USDA Loan Program is a fantastic no money down, 100% financed USDA loan program that is ideal for certain homes and certain buyer(s). Trying to determine the areas and buyers that are eligible for the USDA Loan Program is a constant source of confusion for less experienced Realtors, Lenders, and homebuyers.
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December 29, 2010

USDA and VA – The "Secret" No Money Down Loan Programs

Currently there are only two loan programs offered throughout the United States that allow a homebuyer to purchase their home with no down payment and no out-of-pocket costs provided the seller pays for the closing costs and escrows. The two loan programs are VA and USDA. The VA loan program requires that the borrower have earned their VA Eligibility by serving in the military and/or reserves.
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December 20, 2010

Why USDA Rural Loans Are Slowly Getting More Popular?

As the only no money down loan program available in the United States that is not restricted to just current or former military service personal it is hard to understand why the USDA Rural Development Loan Programs haven't become the lead loan program throughout rural America. To understand the relatively slow rate of adoption of the USDA Program one must first understand the motivations and requirements of the parties to the transaction.
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December 16, 2010

Credit Scores and the USDA Rural Development Loan Program

The USDA Loan Program is by far the most credit score friendly loan program currently available. While USDA is willing to work with scores lower than 640 most lenders won't. Thus, pragmatically the minimum credit score required by USDA is 640.
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