Tag USDA Rural Housing Loans

Tag USDA Rural Housing Loans

Delaware USDA Home Loans adds monthly mortgage insurance October 2011

John Thomas September 3, 2011 Tags: ,

Delaware USDA Rural Housing Loans will be adding a monthly mortgage insurance premium on all loans effective October 1, 2011. The USDA announced this change in administrative notice AN 4551 which made the following changes to the Delaware Single Family Housing Guaranteed Loan Program:

1) Upfront Guarantee fee lowered from 3.5% to 2% on purchase transactions.

2) New annual fee of 0.3% added to purchase and refinances.

Overview of the new guarantee fee:

  • The annual fee will be required for all loans that receive a Conditional Commitment issued by USDA on or
    after October 1, 2011
  • The annual fee will be calculated based on the average unpaid principal balance (UPB) for the year
  • This fee will be collected monthly as part of the borrowers housing payment
  • The monthly amount must be escrowed (two months will be collected at closing)
  • The USDA Annual Guarantee Fee will be required for the life of the loan
  • The new fee would increase a borrower’s housing payment approximately $17/month for a $100,000
    purchase loan (as demonstrated in the table below) or approximately $25 per $100,000 for a refinance
  • Borrowers whose DTI is already at the maximum USDA allowance of 29/41 may be at risk of not
    qualifying if the USDA Conditional Commitment is received on or after October 1, 2011

Purchase transaction with the Up-front Guarantee Fee being financed (rolled into the loan)
Loan Amount: $100,000
Rate: 4.75% Keep Reading...

Middletown Delaware Real Estate – New Listing – 1 Hayley Court

John Thomas July 16, 2010 Tags: , ,

New Listing for Middletown Delaware Real Estate – 1 Hayley Court, Middletown, DE 19709

100% Financing Available on this home through special government program with preferred lender.

1 Hayley Court, Middletown, DE 19709

  • Square Footage – 2100
  • Bedrooms – 4
  • Baths – 2.5
  • Property Taxes – $1,597 a year
  • MLS # – 5742676

Whoever designed this Middletown home put a lot of thought into it! Spacious rooms throughout. This home offers you a formal living room and formal dining room, large kitchen with island, 1st-floor family room w/gas fireplace. Sliders from the kitchen lead to deck and huge fenced yard.  The second floor has 4 very spacious bedrooms, laundry area. The master bedroom gives you 2 walk-in closets plus master bath w/jacuzzi style tub, separate shower, and double vanity sink. The basement is finished with a recreation room and extra room perfect for an office, playroom or guest room. There is also a basement area w/workbench perfect for your workshop. Keep Reading...

What is a USDA Rural Housing Home Loan?

John Thomas June 27, 2010 Tags: , ,

What is a USDA Rural Housing Home Loan?

USDA Stand for the United States Department of Agriculture. The loan is designed to provide financing for borrowers in designated areas who wish to borrow up to 100% of the appraised value. The loan is guaranteed by the government through the Rural Housing Division of the USDA. The major benefits of the loan program are as follows:

  • 100% Loan to Value
  • Zero down payment and no minimum investment required
  • No limit on seller concessions or gift
  • No monthly mortgage insurance required
  • No reserves required
  • 30 year Fixed Rate
  • Low Interest Rates comparable to FHA
  • Flexible Credit Guidelines
  • Can be used for purchase or refinance
  • Can include repairs to the property in the Loan

There are income requirements and the property must be eligible by being located in a designated rural area. The rural designation is not what everybody would consider rural. You would be surprised at what areas qualify.  For more information or to apply for a USDA Rural housing Home loan call John R Thomas at 302-703-0727 or you can APPLY ONLINE HERE. Keep Reading...

Delaware USDA Rural Housing Loans – Property Eligiblity

John Thomas June 26, 2010 Tags: , ,

Delaware USDA Rural Housing Loans – Property Eligibility

How do you determine if a property in Delaware is eligible for financing through the USDA Rural Housing Loan program? You can enter the property address at the following website http://eligibility.sc.egov.usda.gov

The address will be displayed on the map and it will state whether eligible or not just below the map. You can view a map of each county here to see what areas of Delaware qualify.

If you would like to apply for a Delaware USDA Rural Housing Loan, you can call John Thomas at 302-703-0727or APPLY ONLINE NOW. Keep Reading...

Delaware USDA Rural Housing Loan Income Limits 2010

John Thomas June 25, 2010 Tags: , ,

The income limits for obtaining a Delaware USDA Rural Housing loan have been increased for 2010.  There are two limitations for applying for a USDA Rural Housing Loan, income limitations and geographical limitations.  The income limitations are county specific.  Delaware has three counties: New Castle County, Kent County, and Sussex County.

The income limits are as follows:

New Castle County:

1-4 Family Members   5-8 Family Members

$0 – $90,050                     $0 – $118,850

Kent County: Keep Reading...

USDA Rural Housing – We can Still Lend after Funds Run Out!

John Thomas May 11, 2010 Tags: ,

Rural Development which oversees the USDA rural housing loan program will run out of its 2010 funds by sometime in May 2010. Most lenders have stopped doing the program and have even given false information that the program is out of money.  There is still funds available and lenders can still lend on this program.  When the funds run out if RD will issue a conditional commitment then the lender has the option of lending the money and waiting on the guarantee when new funds are issued.  This can only happen if RD gives a conditional commitment.  RD was not going to issue conditional commitments after the funds ran out for this year until now! Keep Reading...

Delaware USDA Rural Housing Loans – How much can you borrower?

John Thomas February 26, 2009 Tags:
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USDA Loan How Much Can You Borrower

Delaware USDA Rural Housing Loans How Much Can You Borrower?

Delaware USDA Rural Housing Loans can be used to purchase a home and allow you to the borrower up to 101% of the appraised value.  This is a big difference from Delaware conventional loans and other government loans such as Delaware FHA Loan or Delaware VA Loans.  Every other loan bases the maximum amount you can borrower off the LOWER of the purchase price or appraised value.

USDA Rural Development Loans will let you borrower up to 101% of the appraised value no matter what the purchase price.  So let’s say you are buying a house for $210,000 and it appraises for $220,000.  You could borrower up to 101% of $220,000 which would be $222,200.  Now you can’t get paid to buy a house so you can only borrower above the purchase price to cover your closing costs.  So if you can’t negotiate for the seller to pay your closing costs, you could finance them into your USDA loan if home appraises higher than the purchase price.  See Example Below: Keep Reading...

Delaware USDA Rural Development Loans Income Limits for 2009

John Thomas February 23, 2009 Tags:

The income limits for Delaware USDA Rural Housing Loans are based on the number of people in the house and the county where the property is located.

New Castle County Maximum Income Limits for 2009

1 Person 2 Person 3 Person 4 Person 5 Person  6 Person  7 Person

$61,100 $69,800  $78,550 $87,250  $94,250  $101,200  $108,200

Kent County & Sussex County Maximum Income Limits for 2009

1 Person  2 Person  3 Person  4 Person 5 Person  6 Person  7 Person

$49,550 $56,600 $63,700  $70,750 $76,400  $82,050  $87,750 Keep Reading...