The USDA Guaranteed Home Loan Program in Middletown Township is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in Middletown 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.
BUT, there are several USDA Loan eligibility requirements in Middletown 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 Middletown 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.
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
It is freedom for spreading today we are getting details on usda loans. And as a more and mortgage loan representative at freedom first joins us to tell us more. Welcome thank you for having me. >> there are a lot of loans out there so let's talk about the usda loan. What is that? usda loan is a great option. It offers people 100 percent financing, meaning no down payment. The mortgage insurance within the monthly payment is very affordable compared to other loan programs. You do not need to be a first-time homebuyer to take advantage of that program. It is designed for property specific like only in rural areas. >> oh okay so that is good enough. People are buying in the city , not necessarily would use a sports book that is why you will want to give us a call and let us know what property you are interested in and they would see if that piece is in the usda eligible area. >> and why was this created ? To encourage people to live in more rural areas? >> homeownership designed for certain income areas like moderate to low income households. Two in one homeownership in the rural areas. >> let's talk more about the features of a usda loan. What can we expect?>> I touched on that a little bit as far as no down payment. And it is designed to help people obtain homeownership that no down payment, low mortgage insurance. Those are the best features for people that don't have a down payment to work with. >> and their are a lot of people taking advantage of the usda loans were now? >> there are. We get a lot of inquiries. The big part is making sure the property is in a usda eligible area so we can help with that. >> how do you know? >> you enter a property address into the usda website and it tells you if it is in a usda eligible area. Very easy today. >> so anybody could do it? So if i'm sitting at home and my computer, what do I have to do? >> I would look up usda property eligibility and it will take you to that webpage within the website and then you enter in a property address and hit enter and it tells you if it is in an and eligible area. >> that is nice. >> another piece of that to is -- kinda touching on the household income limits , most of the counties in our area do have household income limits of 78,000 200 meaning all adult income earners , their total income has to be within that range. >> in the house. So consider that. >> that can be a challenge sometimes. >> but that is nice you don't want to put down payment on a house or anything like that. So it can be a little confusing i'm sure. Do you encourage people to call you?
Good afternoon. I'm Ellen Mitchel with the Prestige Estate Team of REMAX Allstars here in South Florida. I'm here today with Will Caban from Cross Country Mortgage. Thank you for having me. Thank you for coming. It's my pleasure. Good to be here again. We did a video recently about VA loans which is something that William specializes in andwe got a lot of questions. The question that we got the most was: Howdoes a veteran and non veteran applicant affect a VA loan?So for example I'm a non veteran dating a veteran and we want to purchase a property togetheror I'm a veteran and I want to purchase a home with my mother or father or siblings thatare not veterans. So how does that work and does it work?Absolutely. So to answer your second question first, yes, it does work. It is possible to actually do a vet/non-vet loan. There's just a few caveats when doing a vet/non-vet And one of the more important aspects of a vet/non-vet loan is: 0 percent is no longeran option. Yeah. So you have to and here's the reason why. One of the big benefits of being a veteranand doing the VA loan is that you get something called the Certificate of Eligibility. And the Certificate of Eligibility is something that's earned and depending on the amount ofeligibility that you have that is what substantiates you to be able to have 0 percent down. So when you have 0 percent down up until a loan amount as of this recording which is November2018 it's $453,100 in the state of Florida. Anything over that then you would have tobring a dollar you know a downpayment for the difference between what the maximum loanis and whatever that loan amount is. Its completely different with vet/non-vet loan. The vets can have the portion of their loan that's covered 100 percent and then half ofthat loan which is the responsibility for the non-vet would have to come out of they wouldhave to come out of pocket 12 1/2 percent in most cases. And were assuming that the loan is gonna be under $453,100. In that situation the down payment is significant for most people right?There's still some benefits when you look at 12 and 1/2 percent down because VA loans traditionallyhave lower interest rates there's no mortgage insurance attached to it even if its a vet/non-vet loan. So exploring that as an option is definitelysomething that most people can take advantage of. Now with that being said the second big item that most people need to be aware of is: Anyvet/non-vet loans have to be vetted out by an underwriter by the VA themselves. There are no exceptions to that rule whatsoever. So when we look at our turn times and we lookat you know what we can do from a lender's perspective we lose a little bit of that control. But the VA always wants to make surethat they're turning around loans as quickly as possible. So if it ends up being a vet/non-vet loan it is absolutely something that we could do. Just those two major caveats that we need to be aware ofRight. Well I think the question and answer has prompted a lot more questions. So if you have any questions, please post them below and we will be happy to answer them. William Caban Cross Country Mortgage. He is the person to contact for this. Thank you so much and have a great day. Take care. Bye.
USDA Loan Limit in NJ | (888) 464-8732