Homes-By-Holmes Real Estate  
19 Main Street
Franklinton, NC 27525
919.422.7630

 

100% USDA Loans
Since the 100% financing and FHA with down payment assistance is no longer  available. You can Get 100%  Financing through USDA.  The only 100% option is VA and USDA. With USDA you will have to purchase a home in rural areas such as  Apex, Bunn, Clayton, Dunn, Garner, Fuquay Varina, Henderson, HollySprings, Franklinton, Louisburg, Knightdale, Zebulon, Wake Fores, Wendell, Youngsville, and surrounding rural areas. If not all or part of these towns qualify for 100% USDA Loan.  Please call us for Raleigh, Durham and other cities.

Purchase your new home with a true no down payment home loan option from USDALoans.com! The USDA has a series of loans, grants, and benefits for Rural Communities and the individuals that live in rural areas. These USDA loans include Business Loans and grants, Single Family and Multi Family Housing Loans and Grants, and Community Facilities Loans and Grants. The USDA Rural Development provides these loans to help improve the lives and economy of individuals who live in rural America.

There are certain eligibility requirements that must be met in order to obtain a USDA loan. Our Specialists understand these requirements explicitly, and can help you quickly determine your level of eligibility for a mortgage. Contact us today to learn more by filling out our short form.

USDA Loan Guidelines

Some of the eligibility standards that determine if you qualify for a USDA loan for your home include what county and zip code the home is located in, your current income and credit history, as well as the number of dependents you can claim. Because these guidelines are very specific, it is important to work with a company that has experience dealing with USDA government financing. There are few loan options that permit no down payment - do not miss out on your chance for home ownership.

Grants for Community development are also available. These grants may be used to help in the revitalization, enlargement, and construction of community facilities. These facilities may include but are not limited to health care, public safety and public services. The funds are generally used for special initiatives such as Native American communities, federal government child care centers for the welfare-to-work initiative. USDA's loan program is often the best mortgage option for a home buyer residing in a qualifying area who does not have military experience.

Benefits of USDA:

No Down Payment Required. Borrowers who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out of pocket for a down payment. That means a borrower can finance up to 100% of the appraised home value. Or, a borrower can have a gift or grant go toward a down payment with no money out of pocket.

No mortgage insurance payments. Unlike an FHA guaranteed home mortgage, a USDA Rural Development home loan does not require expensive mortgage insurance premiums to be paid by the borrower. That means more money can go toward the mortgage payment each month.

Competitive 30 year fixed interest rates. With the guarantee of the U.S. government, a lender can offer the lowest interest rates to qualified individuals and families.

Flexible credit guidelines. Borrowers must still provide a credit history report. But the flexible guidelines allow potential homeowners with spotty or bad credit to still qualify for a home loan.

No maximum purchase limit. The USDA Rural Development program has no maximum purchase price limit. However, a lender will still determine the maximum amount of loan each applicant is eligible for based on ability to repay.

Home repairs can be included in loan. Looking to purchase a "handyman special" home? Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs.

 

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Credit Requirments:

  • Credit Scores need to be at or above 580.  There are some exceptions - so if you are slightly under this let us take a peak at your credit and we'll let you know if you can close now - or if you need to do some work and close in six or eight months!
  • Traditional Credit Scores are often needed.  Like FHA we can "build" credit... but if your total payments are higher than an underwriter wants them, or if your income is difficult to "document" or if you have been paying $300 a month rent and now your house payment is going to be $800... the underwriter is probably going to want to see some additional credit history.  If you do not have a credit score - call us and we will show you how to get this started.
  • It's a 100% Loan, and you can get a gift or the seller can contribute to the closing costs.  There are no reserve monies needed after closing - so it can truly be a no money out of pocket loan!
  • Qualifying is based upon your gross taxable  income.  This means that if you earn $48,000 a year, before taxes are taken out, we are qualifying you on $4000 a month.   We look at two things to see if you qualify.  We want to see what percent of our total gross income is going to your house payment.  So again, if we are using $4000 a month - we want to see no more than $1160 going towards the principal, interest, taxes and insurance on the loan (or 29%).  The other thing we consider is what percent of your paycheck is getting spent on ALL of your bills (including the house payment).  This should be no more than 41%. Please visit The USDA Website at:www.usda.com to see if your household income is under the USDA limit)
  • Childcare is considered in qualifying for a USDA loan. But it is kinda' complicated... it affects the income used for qualiying and it might mean that if you are over the income limits in your area, but you are paying child care expense - you could still qualify!
  • These loans are fully documented... bring every document you think we might need to loan application!  Because some folks have tried to get these loans without disclosing the spouses income (for instance  - trying to "cheat the system") we normally ask for 2 years of tax returns.

VA Loan Guidelines Explained

When considering a VA Loan, there are many guidelines that designate eligibility. Before getting started on the process, it is important for a potential borrower to understand all of the requirements associated with a VA Loan. Although all VA Loan guidelines will need to be explained by a lender, here is a sampling of what to expect:

Eligibility Guidelines

  • Service requirements ranging from 90 days (active duty during wartime) to 6 years (National Guard)
  • Must acquire a Certificate of Eligibility

Occupancy Guidelines

  • Must personally live in the property or plan to live in the property upon its completion
  • Allows for intermittent occupancy in situations where the veteran has a history of continuous residence in the community and had no intention to establish permanent residency elsewhere
  • Occupancy by a spouse satisfies the requirement for those on active duty

Income Guidelines

  • Sufficient in amount
  • Stable and reliable
  • Anticipated to continue during foreseeable future

Debts and Credit Guidelines

  • Credit reports must be less than 120 days old (180 days for new construction)
  • Deferred student loan payments must be considered among monthly obligations
  • Bankruptcy does not automatically disqualify applicants

Benefits of a VA Loan
Equal opportunity for all qualified veterans

No down payment (unless required by lender or purchase price is more than property's reasonable value)

Buyer is informed of reasonable value

Negotiable interest rate

Ability to finance the VA funding fee

Closing costs that are comparable with other financing programs (and maybe lower)

No mortgage insurance premiums

An assumable mortgage

Right to prepay without penalty

For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder

VA assistance to veteran borrowers in default due to temporary financial difficulty

VA DOES NOT DO THE FOLLOWING:

VA cannot guarantee that a lender will provide you a loan.  VA cannot compel a lender to make a loan that would violate their lender policies or VA income and credit standards.

VA cannot guarantee that a home is free of defects. It is the veteran's responsibility to assure that he/she is satisfied with the property being purchased. The VA appraisal is not intended to be an "inspection" of the property. A veteran should seek expert advice (a qualified residential inspection service), as necessary, BEFORE legally committing to a purchase agreement.

If you have a home built, VA cannot compel the builder to correct construction defects, although VA does have the authority to suspend a builder from further participation in the home loan program.

VA cannot guarantee that a veteran is making a good investment.

VA cannot provide a veteran with legal services.

 

 

 

 

 

 

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