USDA Home Loans
I’m not a mortgage lender and I don’t play one on TV. Before hiring or even talking to a mortgage originator please consult the Department of Regulatory Agents (DORA) in the State of Colorado. OK, now lets move on. Recently I attended a class on USDA loans. Below is an overview of the loan. Please consult a licensed mortgage lender about the actual process of getting a loan and the requirements to obtain one.
- No first-time buyer requirement. You must not currently own a home, unless your home is not structurally sound or is not a reasonable commute to work.
- No down payment requirement. You can get up to 102% of the appraised value. And if you may get your earnest money back or reimbursed for out of pocket expenses.
- Financed settlement costs
- Low monthly mortgage insurance payments(MIP)
- No loan limits
- No reserve requirements
- Flexible credit criteria
- Manual and automated (GUS) underwriting Loan amounts above price to roll in settlement costs, appliances or home repairs.
- Repair escrow accounts for post closing repairs
- No limit on concessions
- No property seasoning requirements, good for new construction and fix & flips
- No recapture upon the sale of property
- No more thermal standards, eliminated in 2008 Property eligibility, check the web site maps
- Income Limits, check the web site for details
- Property types, check the web site for details
- Outbuildings are not allowed – for residential only
- Acreage, there is no limited, but not to exceeding 30% of house values
- Driveways must be connected to the street, have road base, gravel or hard surface
- Private roads must have a recorded easement and meet the same requirements as the driveway standards.
- Flood Zones – check the website maps Appraisal requirements are similar to FHA
- Wells must be at least 3-5 gallons per minute and 5 gallons for new construction