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What are the requirements for the USDA program in Mount Vernon? So that’s going to be looking at a 640 minimum credit score requirement.

There is a income requirement too when applying for a USDA Loan Mount Vernon.

So basically the income requirement is about 78,000 if you’re in a family of 1 to 4 if you’re in a family of 5+ that’s gonna go up to about $103,000 on the income limit.

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The big requirement for USDA is that it’s property specific.

It’s got to be in a USDA Approved Zone. How much down payment does this program require?

It’s actually 0% down payment which is Great!

Ok Awesome, and how much does the average home buyer come in with out-of-pocket?

So because your down payment for a USDA Loan in Mount Vernon is covered you’re just gonna have to come in with again your prepaid and closing cost So if it was a $300,000 purchase.

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you’d be looking at about $7,500 cash for keys to get in the home.

What type of home buyer is the USDA Loan program Ideal for? So this is going to be ideal for the home buyer that’s looking for a property in those specific areas.

Ideally it’s properties that are going to be USDA Eligible rural zones.

So not right in the middle of the city, but maybe if it’s more on the outskirts, on a little bit of land, lower tax rate areas that’s probably going to be a property that’s eligible and that would be ideal because that one would probably qualify OK, Fantastic.

What is a USDA Home Loan?

I bet you’re wondering, what is a USDA home loan?

Designed with the residents of more rural areas in mind, the United States Department of Agriculture designed its loan program to enrich rural communities by providing affordable home loan options to low-income households that may not be able to secure home financing through other means.

Who has time to stop and smell the roses? You don’t, and this isn’t even a rose.

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What are the requirements for the USDA program?

So USDA has a few interesting requirements First of all, you’ll need to have at least a 580 credit score Some lenders require a 620 credit score.

Your household income has to be under the county maximum Like a lot of down payment assistance programs. This is based on family size So 1 to 4 is one category and then 5 and above is a higher threshold for qualifying

What’s unique about this one is the home has to be within a designated area.

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So, Typically what that means is.

NOT within a metropolitan area So within our area here (Riverside county) Our local cities around her don’t qualify But we only need to go 10 miles away to where there’s an open area where there’s Several homes that qualify.

USDA stands for United States Dept of Agriculture But it’s NOT a farm loan.

Specifically, they don’t finance this program for farms in Mount Vernon.

It has to be a Single Family home in the Mount Vernon area, without a barn structure on the property.

Then it also has some home price limitations.

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The Threshold is a little bit lower than say an FHA loan for the loan limits.

Ok, and how does this program differ from other Down payment programs?

So it’s different because it’s not really a down payment program but it allows financing up to a 100% of the purchase price And it’s interesting because you can actually use this program with 1 or 2 of the other programs.

If you need closing cost assistance But, what’s unique it’s a 100% Financing so you don’t need a 2nd or a 3rd lien on the property.

Your interest rates are typically lower than if you combine it with a down payment assistance programs and you don’t have to repay any down payment assistance.

It has a monthly factor It’s like mortgage insurance upfront It’s financed at a monthly component.

Much less than FHA So if you can qualify for this program It’s better than FHA And As I mentioned, rates and payments Are typically lower on this program So USDA is really a great program.

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Great!

And on average How much does the home buyer have to come in with out-of-pocket?

So Again, we are financing the whole loan Purchase price up to 100% So the only thing remaining is then the closing costs Typically, plan on around 3% of the purchase price for funds to close.

The question there then becomes, Well, Where does that come from? Typically, we ask the seller to cover those costs And if we can get the seller to cover 3% Then, the buyer may only need to come in with an earnest money deposit.

And they may even get most or all of that back.

If the seller is covering all the fees.

One unique feature about USDA Versus all other loans is that if the home appraises for more than the purchase price.

We can finance the closing costs up to that appraised amount So, no other loan I know that we can actually finance the closing costs.

What type of home buyer is this program ideal for?

So certainly those that don’t have access to money for a down payment Anyone that wants to live that doesn’t have to live within a metropolitan area because, again, the house has to be in an area that is not in a high densely populated area.

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It’s also suited well for people who have some credit issues and anybody that qualifies for this program would definitely be better served than going FHA so those type of people.

And besides the Area restrictions are their any other property restrictions? So property restrictions are going to be similar to FHA They’ll do manufactured homes.

They’ll do homes with Casitas So no real other restrictions.

Just if it conforms to the FHA guides then it should qualify for USDA There’s a couple little quirky things that you don’t run into very often like you can’t actually have a barn on the property It definitely can’t be for agricultural purposes It has to be for residential purposes.

USDA Loans in Mount Vernon – Do You Pre-Qualify?

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Good afternoon.

I'm Ellen Mitchel with the Prestige Estate Team of REMAX Allstars here in South Florida.

I'm here today with Will Caban from Cross Country Mortgage.

Thank you for having me.

Thank you for coming.

It's my pleasure.

Good to be here again.

We did a video recently about VA loans which is something that William specializes in andwe got a lot of questions.

The question that we got the most was: Howdoes a veteran and non veteran applicant affect a VA loan?So for example I'm a non veteran dating a veteran and we want to purchase a property togetheror I'm a veteran and I want to purchase a home with my mother or father or siblings thatare not veterans.

So how does that work and does it work?Absolutely.

So to answer your second question first, yes, it does work.

It is possible to actually do a vet/non-vet loan.

There's just a few caveats when doing a vet/non-vet And one of the more important aspects of a vet/non-vet loan is: 0 percent is no longeran option.

Yeah.

So you have to and here's the reason why.

One of the big benefits of being a veteranand doing the VA loan is that you get something called the Certificate of Eligibility.

And the Certificate of Eligibility is something that's earned and depending on the amount ofeligibility that you have that is what substantiates you to be able to have 0 percent down.

So when you have 0 percent down up until a loan amount as of this recording which is November2018 it's $453,100 in the state of Florida.

Anything over that then you would have tobring a dollar you know a downpayment for the difference between what the maximum loanis and whatever that loan amount is.

Its completely different with vet/non-vet loan.

The vets can have the portion of their loan that's covered 100 percent and then half ofthat loan which is the responsibility for the non-vet would have to come out of they wouldhave to come out of pocket 12 1/2 percent in most cases.

And were assuming that the loan is gonna be under $453,100.

In that situation the down payment is significant for most people right?There's still some benefits when you look at 12 and 1/2 percent down because VA loans traditionallyhave lower interest rates there's no mortgage insurance attached to it even if its a vet/non-vet loan.

So exploring that as an option is definitelysomething that most people can take advantage of.

Now with that being said the second big item that most people need to be aware of is: Anyvet/non-vet loans have to be vetted out by an underwriter by the VA themselves.

There are no exceptions to that rule whatsoever.

So when we look at our turn times and we lookat you know what we can do from a lender's perspective we lose a little bit of that control.

But the VA always wants to make surethat they're turning around loans as quickly as possible.

So if it ends up being a vet/non-vet loan it is absolutely something that we could do.

Just those two major caveats that we need to be aware ofRight.

Well I think the question and answer has prompted a lot more questions.

So if you have any questions, please post them below and we will be happy to answer them.

William Caban Cross Country Mortgage.

He is the person to contact for this.

Thank you so much and have a great day.

Take care.

Bye.

What is the VA Loan Limit in Ohio

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Hey Mark Albert here, so glad you're withme today.

Today for the very first time on my youtube channel I get to discussfake news.

I love it.

So pay attention it's gonna be prettyexciting.

Private lenders stress test.

This is new and it's unsubstantiated.

Bigword.

At least five or six syllables.

Let me tell you if you know how manysyllables in that word please write down below so I tried to figure out that fiveor six words syllables.

Fake is one syllable.

News is one syllable.

This isfive or six.

Its unsubstantiated and we're gonna look at that together.

First of all lenders in Canada there's three categories.

There's A lenders, Blenders, C lenders.

A lenders where you get your best rate you need your best creditscore.

Need at least six hundred fifty credit score.

You can do that at fivepercent down with an A lender, any of the big banks and many other lenders thataren't part of the big bank series.

B lenders, if you can't qualify with an A lenderyou got to go to B lender.

Credit score you can get away with under six hundredwith some of them.

But you gotta put 20% down.

Slightly differentregulations.

A little easier to get in to qualify based on stress test but you gotto put a bit more down.

C lenders, that is where you're talking privatemortgages.

Private lenders.

So from a credit standpoint it's less importantand why is that? the reason is is because you're looking at an equity loan.

So theloan is based off of the equity on in on the house and so private lenders willlend out based on the amount of equity you have.

And this is pretty helpful forsome people who can't get they need more money and there with an A lenderor B and they need more money for pretty strategic reasons and these guys havehelped people have been stuck in a bit of a pickle.

They've been very veryhelpful for a lot of people.

So you didn't know this probably but privatelending in Canada it's about 10% of the total value of mortgages out there.

So right now all mortgage business is estimated about 1.

5trillion dollars in the mortgage market in Canada and 10% of that isprivate money.

Okay? So on January 25th which is this pastFriday a number of media outlets picked up a story published by Reuters and openlike this, it said "Canada is considering subjecting private lenders to the samemortgage stress test rules faced by banks to prevent housing marketsfrom being destabilized by the lenders rapid growth, three sources with directknowledge of the matter said this" and that's unsubstantiated.

How do I knowthat? Well let me tell you.

There's two things that I'm gonna tell you.

MortgageProfessionals Canada is an organization, they're a really key strategic partner inthe mortgage industry in Canada and I happen to be a member of them.

So theysent me a notice on this.

This is what they did.

They contacted directly theMinistry of Finance from the Government of Canada.

They called out directly andthey spoke to senior ministry officials and they were advised by them that thesereports are unsubstantiated.

Word-of-the-day unsubstantiated can'tsay that too many times in a row I tell ya.

Not currently considering anyregulation on private lending so we're clean right? And that's the firstaffirmation.

Secondly, we got Bill Morneau Finance Minister, he wasspeaking to reporters in Ottawa.

This is what he said, he said this "I'm notcurrently considering any stress test on private mortgage lenders".

There you go.

No stress test.

Nothing being considered.

So what does that mean for us? Well foryou, just know, you want to get if you got to get a mortgage for your house youwant to get an A lender if you can.

Right? If you can't you got to defaultto a B and as time moves on circumstances may be that you may needmore resource and because of the stress test you may not be able to qualify formore money.

But you're already an A mortgage or a B mortgage and you haveequity in your home and if the need is important you should be able to look atconsidering private lending if it meets the need.

If you need to get advice onthat, I'd be happy to, reach out to me my contact information is below.

Listen I hope this was helpful.

Thank you so much for being with me today.

Have yourself a fantastic day.

Looking for to talking you soon.

Bye now.

What Is Usda

USDA Loan in Ohio | (888) 464-8732 | USDALoanInfo