The USDA Guaranteed Home Loan Program in Passaic is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in Passaic. Many people who take advantage of this program are able to get into their homes with little to no money out of their pocket.
BUT, there are several USDA Loan eligibility requirements in Passaic 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 Passaic! 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.
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.
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
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[MUSIC PLAYING] Hello, and welcome toCalHFA's lender training. My name is Molly Ellis. Our focus in this video isour VA first mortgage program, basic guidelines,and the best ways to layer closing cost assistanceto benefit your veteran. First, let's talk aboutour CalHFA VA program. It's a VA first mortgage withan affordable interest rate. It has a maximumloan-to-value of 100%, and a maximum combinedloan-to-value of 105%. The minimum creditscore is 640, and the maximum debt-to-incomeratio is 45. Technically, CalHFA doesn'thave a loan amount limit. However, we do chargea high balance fee for any loan over $484,350. This would only beapplicable if the VA loan limit in the countythe property is located allows you to exceed $484,350. Otherwise, you'd have toadhere to the VA loan limit. For pricing and thehigh balance fees, please check out the ratepage on CalHFA's website. A unique feature ofCalHFA's VA program is that it can beused for a borrower whether or not they area first-time homebuyer. What makes our program so greatis the closing cost assistance. Layer the CalHFA VA program withour MyHome Assistance Program to allow the veteranto move in with little or no cash out of pocket. The loan amount for MyHome is3 and 1/2% of the sales price, or the appraised value,whichever is less, which could cover most ofthe veterans closing costs. Or if the borrower works fora California public school, they can use CalHFA's SchoolTeacher and Employee Assistance Program. This loan will get them up to4% in closing cost assistance. You can use only one, eitherMyHome or the school program. Either way, the interestrate is 3 and 1/4% simple interest withdeferred payments. Please do not calculate apayment into the borrower's DTI, as it is not required. Now when we add MyHomeor the school program to the CalHFA VAloan, the veteran does need to be afirst-time homebuyer. And remember, the definitionof a first-time homebuyer is someone who has not owned andoccupied a principal residence in the past three years. Both have to be used withthe CalHFA First Mortgage, and must be insecond lien position. When you're working witha first-time homebuyer, homebuyer education is requiredfor at least one borrower on the loan. CalHFA does not allow for amanually underwritten loan on a VA loan. That covers our VAFirst Mortgage Program, and the mortgage assistancethat can be layered with it. Now let's move on to propertyrequirements and maximum lender origination fees. The property requirementsfor these programs, for the most part,follow VA guidelines. Also make sure you adhere toany lender or investor overlays. The sales price ofthe property must be within CalHFA's publishedsales price limits. A one-year home warranty isrequired for first-time home buyers, unless they'repurchasing new construction. The property cannotexceed five acres, and manufacturedhomes are not allowed. If the propertymeets VA guidelines for an accessory dwellingunit, then as allowed, you can use the rental income. Now let's talkabout lender fees. First, you must be aCalHFA approved lender. Even though CalHFA usuallycaps the lender fees at 3%, on a VA loan, you'llneed to follow VA requirements, includingallowable and non-allowable fees. Our rates are at par. So you have to chargeorigination on these loans. But with the closingcost assistance from MyHome or theschool program, the borrower willstill have very little out-of-pocket expenses. If VA allows, you can chargean additional processing fee of $250 for MyHomeor the school program. You may not charge any otherfees, like origination fee or per diem interest,on the subordinate loan. We want to help make this easy. So we have provided sometools to help you process loans with CalHFA programs. The Loan Program HandBookfor each one of our programs includes all the detailsabout the program in one easy handbook. The Loan Program Matrixprovides a quick reference of terms and requirementsfor all CalHFA programs. The very popular LoanScenario Calculator will help you calculateloan amounts and print results for your borrowers. You can find these toolsunder Lenders/Real Estate Agents on our website. Click on Loan Program HandBooksfor the program handbooks, the calculator icon for theLoan Scenario Calculator, and the Tools, Affidavits, &Docs tab for the Loan Program matrix. Now let's look at the funstuff before we close. Our single-familylender training team offers in-person trainingclasses every month across the state. Attend a four-hour workshop tolearn all about CalHFA's phase programs. Classes are announcedeach month on our website and through our monthlyeNews announcements. To sign up for a class,visit CalHFA's website, choose the Training Calendarlink under Lenders/Real Estate Agents, and sign up for a classthat will work best for you. We also provide customizedmarketing materials that can be downloadedfrom our website by clicking on theLenders/Real Estate Agents section of the website. Choose the Loan Officers tab,then choose the Sales Tools & Marketing Materials link. For any questions you may have,contact single-family lending at 916-326-8033. Or you can email ourlender services division at LenderTraining@calhfa. Ca. Gov. Thank you so much for your time. Now get out there andhelp more veterans have a place to call home.
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