⏩ USDA Loan Requirements 2024 - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PHimtCNdJyo.html ✅ - Work Directly with My Team (Mortgage and Real Estate Nationwide) - www.jebsmith.net/referral 🏠 - First Time Home Buyer Course - www.becominghomewise.com
It should be understood that with these exceptions to the requirements, they will usually only allow one exception. So you cant have credit under the limit AND under the 2 yr employemnt AND one point over on dti. So if you need one to exception, make sure everything else is in order. All credit scores below 640 are manual underwrites.
Everyone who makes video's "educating" people on the "facts" about USDA Loans all say something different. It would be really nice if someone who actually works for these folks directly to let us know exactly what is required, and what the pro's and more so the con's are of all of this. Cause it sounds like there are more con's to signing up to this rather than pro's.
Hi Jeb, I really appreciate your channel. I have a question about the monthly payment for USDA loans. So if someone qualifies for $0 down wouldn’t that just make the monthly payment really high? I get the benefit of not having to put money down at closing but it doesn’t seem to help if the payments are extremely high. Definitely would like so insight on this. I’m new to this whole process. Thank you
While it's true that $0 down means you're financing the entire purchase price, USDA loans also have competitive interest rates which often make monthly payments quite manageable. However, the exact monthly payment depends on multiple factors, such as your loan term, interest rate, and the cost of property taxes and insurance. So it is essential to have a complete understanding of your monthly payment before securing the loan. It's always recommended to seek advice from a reputable mortgage loan officer to further clarify these points. Happy home buying!
USDA Direct loans offer terms of 1% interest for very low income and up to 4% for moderate-low income, significantly lower than the conventional 7%. This, along with 33-38 year terms (vs. conventional 20-25 years), reduces monthly payments. There's no PMI, which also lowers costs. Consider adding an Individual Development Account (IDA) for a down payment, or a first-time lower-income homebuying grant from a local nonprofit to further reduce your monthly payment. Additionally, converting your Section 8 rental voucher to a partial mortgage payment can help too. These strategies combined can significantly lower your monthly costs. This is for 502 direct program BTW
If you’re Social Security income, allow you to meet the qualifications then yes you can purchase using a USDA loan. You can use it anywhere that is deemed rural per the USDA
What if the business you purchased has existed for 8 years when you purchased it? Do they consider the previous years income if you switched from w2 to self employed?
Hello Jeb, thank you so much for the valuable information in this video. Hopefully you can see my question. I'd like to apply for a USDA loan. My wife is currently not working but will in the near future. Should she be part of the loan application even though she currently has no income? Her credit score is better than mine. Thank you
When calculating DTI, I’m buying in my name without my husband but one of our vehicles is in both our names. Will they count the full payment against me?
This is good info. BUT not a single loan officer wants to deal with USDA loans . They rope u in to get u a different loans because this loan is simply a pain to deal with for the lender
it's certainly true that USDA loans can seem a bit daunting due to their specific criteria and guidelines. They are indeed a bit more complex compared to other loan types, but each loan has its own unique benefits and those that can do USDA probably should.
Theres 2 types of USDA1) Guaranteed Loan: Backed by the USDA but issued by a lender like a bank and 2)Direct Loan: Provided directly by the USDA to eligible low-income borrowers. 🎉The reason USDA loans are a pain is that you cant go over 115% of the median household income for the area. That means you cant make more than 115% of household but you need to have enough income to satisfy LTV, DTI etc. In theory it makes sense,in practice is a nightmare in most places.
USDA 502 direct loan is a federal program funded yearly. In 2023 it was delayed and reduced from 1.25 billion/2022 levels by 450-500 million, but it was funded. Oct 2024 (FY 2025?) will prob look similar to the prior year (800 million) i don't understand exactly the federal budget timelines, but this USDA program began in 1949 expanded a bit in 1980's -and is funded every single year
