The USDA Guaranteed Home Loan Program in Millville is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in Millville. 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 Millville 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 Millville! 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
Good morningThis is Ellen Mitchel with REMAX Allstars This morning I am happy to have William Cabanfrom Cross Country Mortgage here People may not know but there are over 1 anda half million veterans currently living in the state of FloridaYet there are a lot of misconceptions regarding VA loans that both buyers and sellers haveSo I wanted to invite William here this morning to clear some of those up for usThank you so much for having me Ellen I really appreciate itMy name is Will Cabin with Cross Country Mortgage specifically with the TeamWe have offices throughout Florida New York New JerseyOur team specifically we specialize specifically with VA loansWe do it because of the fact that we feel that in the state of Florida there are somany veterans that are not served the way that they should beAnd unfortunately there are a lot of agents listing agents listing side buyer side whojust dont understand the product well enough And Im here to go over some of the myths thatare associated the common myths not all of them but just the most common myths that areassociated with va loans and kind of debunk some of those myths so we have an idea ofwhat the truth is versus what we hear in the marketRight So some of the most common myths are The appraisalstake forever in this market right To be honest with you in the state of Floridaits posted were one of the few states that actually have it posted on the va websiteWe are supposed to have the va appraisal back in 5 days okay and we can send the link toyou so we can show you that Second myth is borrowers are less qualifiedThis is what breaks my heart because on an average credit scores income your assets toclose and your overall education advanced degrees etc are higher from an average standpointthan your fhas your conventionals and your jumbos combinedSo that myth is just simply not true Most of the time our va clients are very wellqualified So that myth is completely debunkedAnd then we have sellers have to pay the closings costs rightBecause all the time sellers have to pay this they have to pay that they have to pay allthe fees They dontTheres not a single fee that sellers have to payOne fee that most people are misconcepting theres a misconception about paying is thepast inspection And actually the veteran can pay that in thestate of Florida Were one of the few states that can actuallymake the veteran pay for that Most of the time we dontWell take care of that So that myth is completely debunkedAnd then outside of that is fha and va are the same type of loanIts not Its completely different theyre both governmentloans but theyre completely different types of loansSo because of that theres misconceptions of well Im not gonna take it because it is anfha loan and its zero downpayment so its inferior The client doesnt have skin in the game whichhurts my heart when I hear that because the only way you get a veteran a va loan is bybeing a veteran active duty or service or putting your time in as they saySo thats the skin of the game That really is the skin of the gameAnd then the last one in this market is you cant finance condosAnd to be very very honest with you va loans have two components that are really greatThe first is if a condo is approved its approved more or less for lifeAnd there is only one document that we need to get in order to make that approved condofinancable and its insurance related So its not even related to the condo itselfits just an insurance document Outside of that we have about ten percentten times more condos approved in the va channel than we do through fha and conventional combinedTheres something I dont know maybe about five or six hundred condos that are approved versusthe six that are approved for fha So these are the most common myths that wecome across But by no means are they all mythsBut these are the most common that we see in the marketSo Im just glad to present that Im just glad to be here and talk about thatThank you so much Well youre certainly you know clearing upa lot of things for me A lot of conceptions that I had had over timebut were obviously wrong So I look forward to having further conversationabout that OkayIf you liked this video and found it useful please below go ahead and like it also leaveany comments Will will be happy to send you a list of thefive or six hundred condos that are available that are va approvedAbsolutely As well as the five common misconceptionsand the truth about those misconceptions the myth busters if you willSo please go ahead and like us below and we will doing a follow up seriesAny questions that you put below we will answer them for you and we will cover them in futurevideos Thank you so much and have a great dayThank you.
[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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