Primary Advantages of a USDA Home Loan

• No Money Down Purchase

• No Monthly Mortgage Insurance

• 30 Year Fixed Interest Rate

• Flexible Credit Underwriting

USDA Home Loans have become extremely popular in the past few years because they offer zero money down purchases with no mortgage insurance. While lenders across the country have tightened their credit criteria, the USDA Rural Mortgage Program has remained relatively unchanged. More than ever the USDA Rural Housing Program is committed to helping families accomplish their dreams of home-ownership. If you have good credit and verifiable income, a USDA Mortgage can be an excellent way to make home-ownership a reality.

USDA Home Loan Summary

• Can be used for the purchase of an existing or new home
• Can be used to refinance and existing USDA home loan
• Available in Rural Areas only
• Primary residence only, no investment properties
• Borrowers must meet USDA’s Credit Eligibility Guidelines
• Borrowers must meet the USDA’s Income Eligibility Guidelines
• 30 Year Fixed Interest Rates are available
• No Mortgage Insurance Premiums

Experienced in USDA Home Loans.

We specialize exclusively in USDA Mortgages. If you are looking for a team of professionals who can guide you through the pre-approval and closing process with confidence, than you have come to right place. Our knowledge of the USDA loan process help insure that you loan closes as scheduled. To learn more about USDA Mortgage Group visit our “about us” page.

USDA Property Eligibility:

The USDA Mortgage Program is only available in rural areas, typically in towns that have a surrounding population of less than 20,000. Find out which areas of your state are eligible by visiting our property eligibility page.

USDA Income Eligibility:

The USDA Home Loan Program was designed exclusively for low to middle income households residing in rural areas. To determine the maximum allowable income in your county visit our income eligibility page.

USDA Credit Eligibility:

The credit criteria of USDA Mortgages is less strict then that of other mortgages. Bottom line: If you have decent credit and adequate income you will find that obtaining pre approved for a USDA Home Loan is simple. Read more about the USDA’s Credit Guidelines at our USDA credit eligibility page. Below you will find a list of common credit dis-qualifiers that many prevent you from securing a USDA Home Loan.

Credit Disqualifiers

• Foreclosure within the last 36 months.
• Bankruptcy within the last 36 months
• More than one 30 day late in the past 12 months
• Outstanding Collections
• Outstanding Judgments in the past 12 months
• Two or More missed rent payments within the last 24 months
• Chapter 13 Bankruptcy – Case by Case review
• Delinquent tax liens
• Delinquent student loans

Educating Our Clients

The USDA’s Rural Housing Program is fairly robust. We understand that you might have a unique situation or questions that are not answered directly on our website. That is why we make ourselves available 7 days a week to answer your questions. Feel free to call us today to get all your questions answered.

Frequently Asked Question

What is a USDA Home Loan?
A USDA Guarantee Home Loan is a government insured loan, which is issued and serviced by a lender. USDA mortgages have become a popular in Washington State because they offer a number of advantages over FHA and Conventional loans which include:

• zero money down purchases
• no mortgage insurance
• flexible credit criteria
• seller paid closing costs

Do need to be a first time homeowner to qualify for a USDA Home Loan?
No, the USDA puts no restrictions on previous home ownership.

Do I need to come up with a down payment to qualify for USDA home loan?
No, that is the beauty of this program, there is no down payment requirement.  USDA Guaranteed loans offer 102% financing.  100% of the purchase price can be financed, as well as, the 2% Guarantee Fee (fee the government charges to run the program). Borrowers should also know that the USDA allows for 102% financing of the appraised value…which is a great tool when trying to finance closing costs.  We specialize in structuring USDA home loans with no out of pocket expenses.

Are USDA Guaranteed loans only for low-income borrowers?
No, USDA Guaranteed loans are for Moderate to Low Income borrowers.  In most counties in Washington State, as an example, a 1-4 person family can earn up to $73,600 per year, in some counties the income limit is as high as $92,000 per year. Income limits also increase for families greater than 4, for instance a family of 5 in Pierce County Washington can make up to $103,400 per year and still qualify. To check the USDA income limits for your area visit the USDA Income Eligibility page.

Are there restrictions on where I can purchase a home using a USDA Mortgage?
Yes, the USDA requires the property to be located in a rural area. To determine which areas of the state are eligibile for USDA financing visit our property eligibility page. Typically, towns with a population less than 20,000 are considered eligible for a USDA home loan.

Is the loan process for a USDA home loan similar to other types of home loans?
Yes, From the borrowers prespective a USDA home loan works just like any other kind of home loan. The loan process typically takes between 15 to 30 days depending on the speed at which the appraisal is obtained and how long it takes the USDA regional office to approve the loan. Click here to view a breakdown of the USDA loan process.

Need more information?

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

Rural Mortgage Bill moves to the Senate

April 30^th, 2010. The US House of Representatives has based the bill (HR 5017) which will be used to replenish the USDA Rural Housing Loan Program which is nearly out of money. After winning a 352-62 vote, the bill now moves to the Senate for final consideration.

The USDA Rural Mortgage program is extremely important to low to middle income families looking to purchase homes in rural areas. The Rural Home Loan program has experienced increased demand over the past three years because it allows for Zero Money Down purchases without Mortgage Insurance.

The USDA Home Loan Bill purposes that lenders will pay up to a 4% fee on new home mortgage and the USDA will have increased loan authority of $30 Billion Dollars for the Fiscal Year 2010. If the bill passes the Rural Mortgage Program will move from a combination of government and industry fees to a self-sustaining initiative.

In 2009 over 150,000 households used a USDA Mortgage to Purchase a home. The passing of this bill will help insure that even more Americans living in rural areas will have access to competitive home loans.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

The USDA home loan process is very similar to that of a conventional or FHA mortgage . The main difference is that your USDA Home Loan will be submitted the State’s USDA Field Office for review and final approval. From a client’s perspective  USDA Rural Mortgage process is seamless. The mortgage lender underwriting the file will submit the loan to the USDA Field Office. Once the field office has completed its review the client will be notified and loan docs will be ready to sign.

USDA Rural Home Loan Process

Step 1 – (0 to 2 Days)

Loan Application - we review your file, and determine if you meet the USDA Property Eligibility, USDA Income Eligibility, & USDA Credit Eligibility Guidelines.

Step 2 – (1 Day)

Lock Interest Rate (if applicable), Order appraisal, Request Remaining underwriting items.

Step 3 – (3-6 Days)

Wait for Appraisal to be completed, Gather all remaining underwriting items, prepare file for underwriters review.

Step 4 - (2-3 Days)

Underwriting items are gathered. Cornerstone underwrites the USDA Home Loan and Submits the file to the USDA Regional office for final approval.

Step 5 – (2 or More Days)

The loan is reviewed by the USDA Field Office, this process can take as little as two days or more than a week depending on the number of USDA home loans being processed by the USDA Office at that time. Underwriting for Washington and Oregon USDA Home Loans typically averages less than 7 days.

Step 6 – (2-3 Days) Closing

Once the USDA has issued its approval, we drawn loan docs, the client signs, and the loan typically funds the day of signing or the day after. 3 days later for refinances.

Work with a USDA Rural Mortgage Specialist

The USDA Mortgage Group is a team of dedicated mortgage professionals who specialize in USDA Home Loans for Washington and Oregon. Our expertise helps insures a smooth transaction that closes as scheduled. If you’re in the market for a USDA Mortgage please contact us today, we would be happy to answer any questions you might have.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

USDA Home Loan Washington

USDA Mortgage Closings – Fiscal Year 2010.

Today the USDA Single Family Housing Guaranteed Loan Program released its 2010 fiscal year funding numbers. As of April 27 2010 the breakdowns are:

USDA Purchase Loans:       $1,046,482,690

USDA Refinance Loans:            $84,377,998

USDA Total Funded:             $1,130,860,689

Based on the above figures the USDA Home Loan program is expected to run out of funding on May 7, 2010. There is, however, a silver lining. On April 14, 2010 two new bills (HR 5003, HR 5017) were introduced to congress which, if passed, will provide additional funding through 2010. The status of these proposed bills is available for viewing at http://thomas.loc.gov/home/bills_res.html.

Can I still get a USDA Home Loan Started?

Short answer, Yes. There is a strong possibility that the USDA Mortgage Program may continue issuing Conditional Commitments due to the high likelihood these bills will pass. Bottom line if you need USDA financing there is no reason to get discouraged just yet, you can start the USDA loan process by contacting us today.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

Finally some USDA News we are excited to share !

USDA Mortgage Group is proud to announce that the House Financial Services Committee today (April 22nd, 2010) passed a bill that will be used to extend the USDA Rural Mortgage program for rest of the year. This is encouraging news to the thousands of homebuyers who are currently waiting on a Washington USDA home loan to  finalize their hoem purchase. The program has seen increasing popularity over the past 3 year because it is the only viable souce of Zero Money Down financing with No Mortgage Insurance. Sadly, govnerment funding as lagged far behind consumer demand, but bills like this will help insure the program is available to rural borrowers throughout the United States.

What Happens Next?

Currently, USDA bill has passed at the committee level and is moving on to the House of Representatives for a vote next week. If it successfully pass in the House it will be submitted to the Senate and then finally to the President. Stay tuned to the USDA Mortgage Group website to find out what happens next.

How to get your USDA Home Loan started.

Are you in need of a USDA Rural Mortgage? If so we encourage you to get the ball rolling today! By starting the application process now you can help insure that your loan is ready to close as soon as funds become available. Our clients understand that working with a USDA Home Loan Specialist guarantees the best results. If you have any questions or would like to start the loan process, contact us today.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

USDA Home Loans Continue to Grow in Popularity

USDA Home Loans are in high demand, but did you that just a few years ago the USDA Mortgage was relatively unheard of? Let’s take a trip back to 2005 when home loans were readably available. Stated Income was not a problem and Zero Money Down home loans were everywhere. When 2007 arrives, the housing market starts to tank, and lenders run for the hills. In a couple short years Zero Money down loans became a thing of past, or so we thought.

USDA Home Loans – No Money Down Purchases.

USDA Mortgages have become popular for a number of reasons. The USDA Home Loan offers:

• no mortgage insurance premiums
• flexible credit criteria
• aggressive rates
• and seller contributions for closing costs and prepaids

However, the standout great advantage of the USDA Home Loan is its ability to offer 100% financing, meaning borrowers can purchase a home with no out of pocket expenses. Of course, like with any mortgage type, you will need to work with a lender who understands USDA home loans inside and out. Accomplishing a Zero Money down USDA Purchase takes a few tricks which an experienced USDA Lender can navigate you through.

Just how popular are Washington USDA Home Loans?

We can let the data do that talking. In 2005, 201 USDA Home Loans closed in Washington, in 2008 that number jumped to 491. By the time 2009 came to close the USDA accounted for 2152 loans in Washington State. Oregon also experienced the same explosion in demand for USDA Mortgages over the past 4 years. Currently, 2010 is shaping up to be the biggest year for the USDA Rural Loan program. We may see over 3000 USDA loans closing in Washington in 2010 with a similar amount closing in Oregon.

*View a chart showing the number of USDA Loans Closed in Washington State over a the last decade

Work with a Washington USDA Home Loan Specialist

The cold hard fact is that most loan officers and real estate agents are uneducated about USDA financing. Unlike other lenders, we specialize in the USDA Home Loan product for residents of Washington & Oregon.

If you’re in the market for a USDA Home Loan give us a call today. Our experience working with the USDA provides us with an unmatched level of understanding which helps insure a smooth and timely closing.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

Bill to extend the USDA Home Loan Progam !!!

On the afternoon of April 14th two new bills were introduced to congress which would keep the very popular USDA Rural Home Loan program alive through the rest of the year. The two bills (one from each party) propose raising the USDA Guarantee Fee charged on all loans from 2% to around 3% to help keep the program afloat. There is a good chance that Washington and Oregon homeowners may see the return of USDA Home Loans as early as May or June.

What is Congress’s Next Step?

Frist the USDA Home Loans bills we be discussed at the Committee Level before a final bill is submitted to the House of Representatives for a vote. We expect this to happen fairly quickly. Right now the USDA Rural Mortgage Program is expected to run out of money right before a crucial Spring Home Buying Season. From what he have seen so far, this Administration has spent billions keeping the housing market a float, we have to believe that they will not cut the only Zero Money Down USDA program available right in the middle of a key real estate selling cycle.

Our members of Congress have received hundreds of letters over the last few month from concerned home buyers, real estate agents, lenders, and numerous organization. It appears their concerned have been heard and that some favorable action may take place in the next 30-60 days.

How do I Get PreQualified for a USDA Home Loan in Washington?

Oregon and Washington USDA Borrowers are asking if they should get prequalfied, even if the program might run out of money. Why not? the pre-approva l process is quick and painless. We can also pre-qualify you for an FHA or Conventional Loan if USDA Home Loans are not available. Also remember that regardless of the actions of Congress the rural USDA Mortgage Program will reset with new funds Oct 1st, as it does every year.

We recommend that you: Hope for the Best, Have a Backup Plan, and be Proactive.

Contact us if you would like to speak with a USDA Mortgage Specialist, we  meet the needs of USDA Home Loan Borrowers in Washington and Oregon.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

How is No Money / Zero Down really accomplished?

The USDA mortgage program allows home buyers to borrower up to 102% Loan to Value (LTV). Why the extra 2% in loan amount? Because the USDA home loan program allows the required 2% USDA Guarantee Fee to be rolled into the new loan amount, leaving the borrower with 102% USDA Home Loan.

USDA borrowers need to understand that USDA Home Loan guidelines do not allow Prepaid and Closing Cost to be rolled into the new loan balance. This means that if you have $180k USDA purchase loan in Washington or Oregon, the max Loan Amount will be the appraised value of $180k + the 2% USDA Fee. Is this example the borrower would be responsible for paying all closing cost and prepaid which amount to $3k-$5k.

So how to I really buy a home with Little or No Money Down?

The answer is simple. Let the seller pay your closing costs and prepaid.

As it turns out this is a very common practice for most USDA Mortgages in Washington and Oregon. A purchase agreement contains a line item for “seller paid closing cost” which the seller can use to contribute cash to pay the closing cost. With a 102% USDA Home Loan and Seller Paid Closing Cost a home can be purchased in Washing or Oregon with no money out of pocket from the borrower.

What if the seller doesn’t want to pay my closing costs?

This can also be easily remedied. For example let’s say you have agreed with the seller to purchase a home for 170k using a USDA Home Loan, but the seller does not want to pay the closing cost. In this scenario the easiest solution is to increase the purchase price to $175k with a $5k seller credit towards closing cost.

Problem solved! no money down, and buyer and seller both get what they want.

How do I start a Washington USDA Home Loan?

Contact us today and start the conversation. We are USDA Mortgage Specialists who focus exclusively on USDA Home Loans in Oregon and Washington. With a quick phone call we can answer all your questions and determine if a USDA home loan is the best option for your situation.

Going Going .. Almost Gone

No one really know the exact date but the USDA will run out of money very soon. Currently, the USDA Rural Mortgage program is guaranteeing around $100 Million in home loans each business day. At this current “Run Rate” the remaining funds for USDA home loans will be exhausted during the first part of May.

This means that if your planning on buying a house with a Washington USDA Mortgage you need to get started ASAP. As of the date of this article there is still time to: lock loans and submit your loan application for USDA approval.

The USDA field offices in Washington and Oregon are averaging a 2-4 day turn time for USDA loan review, which is considerably faster than other states. If you work with the a USDA loan specialist there is no reason why you can’t get your loan in front of the USDA in 7-10 days with a rush appraisal. Once the USDA reviews your loan request, and it is approved, your loan dollars will be set aside until funding.

Waiting could be a big mistake!

If you’re considering a USDA Mortgage, we encourage you to get the process started today. We can’t emphasis enough that funds are running soon. If there is anything we can do to help let us know, we specialize in USDA Mortgages for Washington & Oregon.

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732

USDA Mortgages are not Just for Farmers…

USDA Mortgages or Rural Development Home loans were once thought of as home loans exclusively for farmers. Truth of the matters is they are available to anyone who resides in a USDA deemed “rural area” and meets the USDA’s qualification criteria.

Odds are that if you’re looking to purchase a home in Washington or Oregon that is located in a rural area, you might be eligible USDA Mortgage. If you have already identified a property and would to determine if it is eligible, type the property address into the USDA’s Property Eligibility Search Engine. If the search engine determines that the property is eligible you only need to complete an income and credit review to get qualified for a USDA Home Loan.

As lending guidelines have become stricter the USDA Mortgage has become the most popular home loan for borrowers who are looking to purchase a home with Zero (no Money) down and who want to avoid a monthly Mortgage Insurance Premium (MIP). With the USDA’s flexible underwriting guidelines even borrowers with less than perfect credit can qualify and obtain interest rates that are competitive to other 30 year fixed conventional loans.  You can read more about the advantages of a USDA Mortgage on our site.

If you’re searching for the experienced local lender who can close your rural mortgage, contact the professionals at USDA Mortgage Group and get qualified for a USDA Home Loan. We offer obligation free advice and Northwest expertise. We would be happy answer any questions you might have and determine if USDA home loan is right for you.

Thanks for visiting our website!

USDA Mortgage Group.com – Call Us Today! - (206) 569 8732