Monday, March 26, 2012

USDA Guaranteed Home Loan

This USDA Loan is absolutely one of the best home loans available on the market today.  No down payment required.  Yes!! ... It's real.  Home buyers love it and so do lenders.  Lenders love it because the guidelines are very much like a conventional loan. 

It's easy,  unlike the FHA Guidelines that can be cumbersome and difficult to understand.  But to be fair, FHA is a good loan too.  They require 3.5% down and that can be a gift.  It gets a little complicated and the documentation requirements are really tough.  If you don't have the documentation chances are it will not be approved.  That is pretty true with all home loans today.  Every penny must be documented and traceable.

The VA home loan is also a great loan, but ... you have to be a veteran.  The VA loan does not require a down payment and the guidelines are different and can be confusing.  This loan does not qualify buyers based on Debt To Income ratios.  The calculations are all about Residual Income.  Personally I think this is better than the DTI stuff.  It really gets down and dirty as to: "can you really afford the mortgage payment or not"?

USDA actually has another home loan called the Direct Loan.  Not a lot of people know about this loan.  I would say it is a sub-prime loan on the tax payer's dime.  It's all Government money and people can qualify for this loan even if their income includes food stamps.  The Government actually subsidizes the payment if their income is less than 50% of the median income for that county.  That should warm your heart.

There are a lot of good home loans on the market today.  Most people are so busy with their family and jobs that they really do know which loan is the best one to apply for.  We put together the video below as an overview so buyers can start to understand their options.  When you walk into a bank or a lenders office and talk about a home loan, they are going to point you to the loan they want you in.  It is better that you have some in site before you sit in that chair.  If you have questions just shoot us an email.  We do not do loans and we do not share your information.

Here is a much shorter video just on the USDA Guaranteed loan.

Good luck and send us an email if you have questions.

No comments:

Post a Comment