USDA Loan in Hillsborough Township NJ | (888) 464-8732

The USDA Guaranteed Home Loan Program in Hillsborough Township is backed by the USDA – the United States Department of Agriculture.

It is a TRUE no money down home loan in Hillsborough Township. Many people who take advantage of this program are able to get into their homes with little to no money out of their pocket.

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BUT, there are several USDA Loan eligibility requirements in Hillsborough Township that you need to meet in order to take advantage of this home loan program.

USDA Loans in NJ Requirements Explained:

The first requirement is that you cannot be a current homeowner.

If you already own your home but are planning to sell it, then you are still eligible in Hillsborough Township! You just need to have your existing home soldBEFORE we can close the loan for your new home.

The next requirement is that your total annual household income cannot exceed the limits set by the USDA.

These income limits are based on market area and family size.

farmers home loan

Another requirement is that you cannot have defaulted on a USDA loan in the past.

This means that if you’ve had a past USDA loan that has gone in to foreclosure, you unfortunately aren’t eligible.

How to take advantage of USDA Loans in NJ:

To take advantage of this program, the home has to be located in an eligible rural area.

But guess what, rural does not necessarily equal country! Homes do not have to be in a country setting.

In fact, there are many areas where entire counties and cities qualify for this program. The property has to meet minimum USDA Loan property standards.

usda rural development home loan

The home must be in satisfactory condition, and this loan cannot be used to finance any sort of income producing property.

That means mini farms, and properties with farm acreage are not USDA Loans eligible.

2019 USDA Loan Eligible Areas in NJ: Map to Eligibility

homes that qualify for usda loan Hey this is Chris Trapani themortgage Pro! Today I want to introduce you to what is a pre-approval, how doesit work, how do you get one what do I need it for?! Okay here's why you need to bepre-approved! One - you can't go see a house, fall in love with some house andthen find out you're not approved or not approved for that amount. That's reallynot wise on your part and it's really not good for the realtor to show youhouses if he doesn't know you could be a pre-approved. Plus what happens is everyoffer must go to the listing agent. The listing agent will present it to theseller of the house, but if they're not pre-approved well, wheres the pre-approvalletter? Wheres the DU? That's called the desktop underwriter approval goes rightthrough fannie mae's website if you're not approved they're not gonna acceptthe offer but how do they know if you're approved or not so it's really not wiseto do that you're better off going through the approval process with me I'mgonna help you I'm gonna hold your hand it's not that complicated! Okay so people ask all the time what'sthe difference between a pre-qualification and a pre-approvalwell I'm gonna start with what is a pre-qualification here's how it works Ican make a phone call to you we can talk a couple of minutes hey what's yourcredit score Harry oh okay 650 great Harry how much money do youmake great that sounds good what are your debts like Harry okay wecan have this long conversation and I'm gonna ask you all the details do youhave a bankruptcy are you a first-time homebuyerare you married do you have children are you divorced do you pay child supportthey pay out I'm gonna ask you all these kind of questions and you know it takes15 minutes ten minutes or so and I can pre approve you based on my 27 yearsexperience I'm gonna know that you're pre-qualified to buy a house but it'snot the same as a pre-approval. Okay so here's what a pre-approval is you'veanswered all those questions for me already awesome now show me on paperwhat do I mean well you told me that you make $32 an hour on your job I need tosee you pay stubs so I can actually enter it into the computer so we knowexactly and calculate exactly what your income is you told me your credit scorewas a 650 well sometimes I've run it and guesswhat it's a 690 that's awesome even better sometimes I run it when you thinkit's a 650 and you run it off one of those consumer type credit reportagencies and it actually turns out to be a 580 so we need to really know for apre-approval exactly what your score is we also need to know how much debt doyou have and a lot of people say well Chris my car payment is $400 a monthwell it's really four hundred and forty two dollars and fifty cents you don'tget qualified off the four hundred you have to get qualified with the exactamount same thing with credit cards I spend about 50 bucks a month well ifit's fifty three we got to count those three dollars every little thing countshow do you get paid do you get paid hourly do you get paid salary a lot oftimes most people we'll actually miss calculate theirincome really bad so we have to take a look at all of these things you havemoney in the bank Oh Chris you know I got 12 grand and I look at the bankstatement and it says ninety two hundred well I just wrote a check to pay my billlet's see I have to know these things so I could do a full pre-approval once Ihave all your data usually two years taxes sometimes three I enter everythinginto a computer I'm running it right through Fannie Mae and Freddie Mac'swebsite I am looking at your credit it's gonna evaluate your credit it's gonnaevaluate how much money you have saved how much is in your 401k and which is anannuity whatever the amount of money you have oh you're gonna get a gift it'sgoing to evaluate that it tells me okay you've been on the job for one year ineight months what about your previous job we're gonnaevaluate that it's gonna run through a computerized algorithm and it's gonnagive us what we call an approve eligible that's exactly what we're looking forand then we could start the home buying process okay I'm gonna take this even to thenext level it's better than being pre-approved guess what that is it'sactually being approved how do I do that well I'm gonna take all thatdocumentation that I have analyzed my assistants have analyzed we've enteredinto the computer and we're actually gonna submit it to the underwriter theunderwriter is the person who approves or denies the file they are think of itin legal terms they are judge jury and prosecuting attorney all in one and I amthe defense attorney representing you and the judge jury and prosecutingattorney underwriter they're making believe you a lying cheating andstealing trying to get that loan through so I have to forensically prove on paperthat you're telling the truth they're gonna look at all the numbers everythingI've already put in and they're gonna issue the approval do you know howpowerful that is when you go to make an offer now you're out seeing homes with arealtor you make an offer but you're not making an offer from a position ofweakness oh is this loan going to get approved weget to make an offer state this loan is already underwriter approved sometimesthat actually helps you get a better price okay now I'm really excited for youbecause you are approved I want you to go see the houses now I want you to gofall in love with the houses now I want you to make offers on that house is yourdream house and I want you to have a letter in your hands that says I'malready approved to buy this house that's an awesome thing to do andtogether we're gonna fire your landlord.

The 7 Low-Down Payment Loans For Home Buyers

agriculture home loans Hey this is Chris the Mortgage Pro. In this video we're comparing conventional loans to FHA loans to VA loans which one's the best one? Which one's right for you? You know so many consumers are curious. Which loan is best for me? Today I want to help you figure out which one is going to benefit you and your family the most, for you a short-term and/or long-term goals because it's different for everybody. Now there are advantages to each one of these loans so some have lower interest rates, some have lower fees there's all kinds of different things to think about! Now most people have a tendency to just look at one thing. The payment! Which is cheaper? Well, it's understandable when you're buying a house you say, hey which which payment is cheaper? But, again how long you gonna be in that house? Is there PMI? Will the PMI disappear? When will it disappear? If the PMI is gonna disappear in five years butI'm gonna be here in 20 years, maybe this other loan is better a long term! So we have to look at these things as a whole. Now people ask you all the time what's today's interest rate? It's impossible to answer that question, because your finances and every person's finances are as different as fingerprints! When we look at the whole situation you have to understand that all these items, represent different risks to the lender and the higher the risk the higher the interest rate! The lower the risk for example if you put a lot more money down, obviously a lower risk right? Or if you have a higher FICO score lower risk, right? Well we have to look at these things as a whole to help you determine what interest rate you're gonna get and that also helps determine which program is right for you! Okay now it's time we're gonna get into the nitty-gritty we're gonna get into the comparison. Number one - conventional loan. A conventional loan has a minimum of a 620 FICO Score Credit score if you're not sure what a FICO score is that is your mortgage credit score. Now on an FHA loan some lenders go as low as a 500 my company goes down to a 550 the truth is nobody gets approved at 500 anyway and on a VA loan we're also looking at the same thing many lenders go to 500 company goes to 550. Okay PMI mortgage insurance and on FHA it's called MIP mortgage insurance premium now on a conventional loan what happens is it is very very dependent on what is your credit score somebody with a very high credit score might have a very low mortgage insurance payment, but if you have a 620 FICO score your mortgage insurance payment could be way high. Now on FHA FHA has pretty much standardized, here is your MIP rate remember they're the same thing they just call them something else here's your MIP rate it doesn't matter if you have a 620 a 580 a 550 or 800 FICO score makes no difference you're gonna pay the same rate. On a VA loan great news no PMI no MIP you got that one. Okay we're almost halfway through the video so hit the subscribe button and hit the like button I appreciate that now if you'd like to comment, I will answer every single question personally and of course you're welcome to share this with anybody you think it's valuable for! Okay Debt ratio! A debt ratio is the percentage of your gross. Gross income is before they take taxes out. A percentage of your gross income to your debt. Now on a conventional loan with a high FICO score they're gonna allow you or a 50% that includes your car payment your credit cards student loans alimony child support all those kind of things plus the new house payment, that should be no more than 50% now if you have a lowerFICO score, it's probably gonna be 45% that's how conventional works. Now let' stake a look at FHA with a 580 FICO score or above, here's what's basically going to happen. You're gonna probably be approved to a 56. 99%let's call it 57%, again that includes all your debts plus the house payment as a payment. Lastly we have a VA loan. Now a VA loan works very very different it looks at how much money is left over after paying all this stuff. And it's called residual income and everybody depending on what area of the country you live in and how many people in your family there's a certain formula for it. Now if you have 20% more than that just to give you an example if it was a thousand dollars but you have 20% more $1200 and a high FICO score you may even go up to 60 or 65% debt ratio which is unbelievable and its highest in the whole industry. Interest rate on a conventional loan you're often going to hear Fannie Mae, Freddie Mac those are conventional loans. On a conventional loan you are gonna have a higher interest rate than either FHA or VA. Onan FHA loan it's lower than conventional and right about the same as VA they have virtually the same interest rates. Down payment on a conventional loan you're usually looking at a 3% down payment. People ask me about a conventional loanFannie Mae Freddie Mac yes those are conventional loans. Now if we look at anFHA loan an FHA loan is gonna require a three and a half percent down payment as long as your FICO score is 580 or above. If it's 579 or below it requires a 10%down payment and of course for our veterans who honorably served, we thank you! You get a zero percent down payment loan. Okay so we talked about PMI, MIP mortgage insurance whatever you want to call it. But there's also something called upfront mortgage insurance. Now on a conventional loan there is no up front mortgage insurance, but those of you with a high FICO score might want to pay some, and they eliminate the monthly PMI payments forever,. So that's a big deal and that's only available on a conventional loan and it doesn't make sense unless you have a really good FICO score. On an FHA loan we take the loan amount and multiply it by 1. 75 percent we have to add that to the loan amount. Simple example - if you have a hundred thousand dollar loan 1. 75 percent is $1,750, we're gonna add that, so you'd actually be borrowing $101,750 upfront mortgage insurance. On a VA loan there's a couple of different scenarios here the first time use of a VA loan it's 2. 15%so on that same hundred thousand dollars it's two thousand one hundred and fifty dollars added on on a second time use it's three point three percent so that's three thousand three hundred dollars now it doesn't sound like the end of the world but if you're taking a four hundred thousand dollar loan and it's a second VA loan that's three point three percent that is $13,200, that may make you say mmm this other loan might be better. Now though lastly if you're a veteran who happens to be disabled 10 percent or more there is no upfront mortgage fee that there is no VA funding fee it doesn't exist for you. Okay seasoning from bankruptcy many Americans through the last few years they've had a hard time and they did file a bankruptcy on a conventional loan 4 years must have elapsed from the discharge not from when you started but from when it was finished before you're allowed to apply for a conventional loan. On an FHA loan it's only two years and on a VA loan it's only two years. Short sale seasoning. Well a lot of people ask what's a short sale? Well at a time when people owed more than the house was worth, they often went to the bank and said, hey my house is worth three hundred I owe four hundred and the bank accepted three hundred thousand dollars. That was called a short sale. Well if you have a conventional loan if you want to apply for a conventional loan it would be four years after a short sale. For an FHA loan it's three years must have elapsed from the time of the short sale and for a VA loan it's only two years. Again Vets win, they earned. A foreclosure well yes some people went into really hard times on a conventional loan we are looking at seven years before you can buy a home againOn an FHA loan it's only three years and For the vets - two years from a foreclosure okay Time back to work after an extended absence. Well on a conventional loan there is actually no real time frame but the lender will take a look they just want to make sure it's reasonable and everything is considered as a make sense situation you can be back to work for one month after or six months or a year off. On an FHA loan FHA guidelines require six months back to work with pay stubs proof they've been back to work for six months before they'll accept that income. On a VA loan it varies perl ender some lenders will accept right back to work some might want six months or three months a lot of them will require just get past the probationary period on the job and you're good to go. Occupancy on a conventional loan you can buy for a rental, you can buy for a second home if maybe you want to live in the mountains or down by the beach on the weekends or obviously for an owner-occupied property. For a FHA and VA loan it is owner occupied. usda loan information

USDA Loan Limit in NJ | (888) 464-8732