USDA loans are great for people in Wake County! This 100% loan has some exciting differences to FHA and VA loans.
USDA loans can be used for Manufactured Housing! Since more than 35% of all housing in North Carolina is manufactured housing, this is a BIG PLUS!
USDA loans have Minimum Credit Requirements and will allow borrowers to use non-traditional credit!
The only "tricky" things to consider about USDA loans is that they have some "quirky" requirements. In order to qualify for a USDA the property must be in a qualified area, the borrowers must meet the maximum income limits for the area. USDA DOES NOT have a maximum loan limit based on the county the property is located in (like FHA) and base the loan on the amount the borrower can afford to repay.
Property eligability is determined by dense population - therefore, the City of Raleigh and Cary do not qualify for this program. Johnston County, Chatham County, most of Fuquay Varina and Holly Springs - Wendell and parts of Wake Forest do qualify. To find out if YOUR property qualifies click here.
The Income limits are calculated based upon the number of people in your family over the age of 18. In general Wake County limits for a family of 4 (2 adults and 2 children) is $86,100. It varies by area and to check your income to see if your family qualifies click here
For more information on USDA loans contact Steve and Eleanor Thorne 919-649-5058
Eleanor -
Very interesting! There are quite a few local areas that are eligible, including Holly Springs, Fuquay-Varina, Willow Spring, and most of Chatham County. Does the loan have to be for farm land, or can it be for any single family home?
My branch has helped a number of people get 100% financing through the USDA mortgage program, check into it, another great option!
Christopher and Penny
There are actually 3 Government Programs that offer 100% financing..
FHA is 100% with a DAP, VA and USDA.
As Rich knows - the property does NOT have to be a farm -
only needs to be located in a rural / less densely populated area.
So - YES Penny - this is a GREAT program for your houses in Chatam County!
The ONLY kinda' weird thing about USDA homes
is that they really don't like properties with pools (?).
Eleanor,
A USDA loan for manufactured housing? This old dog is here to learn new tricks. I'll check it out. Thanks for the help today!
Mike in Tucson
Eleanor,
I'm back. I just checked some of your links, and found that this is the old Farmers Home program. My very first home (back in the dark ages) was a Farmers Home loan. The 3 BR / 1 BA home on a lake in NJ came to a grand total of $17,000, including $4,000 for the lot. I built it new, and had to take a second job to make the $185. per month mortgage payment!
Mike in Tucson
I think a more intesting diiference is thatthey loan 100 % of the appraised value not 100% of the purchase price.
ooooh!!! great link for the property requirements. I love it. I am sending your post to my client. Don't you love it!!??
Is the underwritng done same place else, does it take 45 days to underwrite?
Sebastian - as of TODAY - we are getting loans approved in less than 7 days... As we get closer to the end of March, we expect those times to get longer... The Fed should make changes that will cause rates to go up about that time!