USDA Broker in Long Branch NJ | (888) 464-8732

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

It is a TRUE no money down home loan in Long Branch. 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 Long Branch 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 Long Branch! 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.

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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.

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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

usda home loan interest rates So Steve, What are the requirements for the USDA program? So USDA has a few interesting requirements First of all, you'll need to have at least a 580 credit score Some lenders require a 620 credit score Your household income has to be under the county maximum Like a lot of down payment assistance programs This is based on family size So 1 to 4 is one category and then 5 and above is a higher threshold for qualifying What's unique about this one is the home has to be within a designated area. So, Typically what that means is. NOT within a metropolitan area So within our area here (Riverside county) Our local cities around her don't qualify But we only need to go 10 miles away to where there's an open area where there's Several homes that qualify. USDA stands for United States Dept of Agriculture But it's NOT a farm loan. Specifically, they don't finance this program for farms. It has to be a Single Family home without a barn structure on the property. and then it also has some home price limitations. The Threshold is a little bit lower than say an FHA loan for the loan limits. Ok, and how does this program differ from other Down payment programs? So it's different because it's not really a down payment program but it allows financing up to a 100% of the purchase price And it's interesting because you can actually use this program with 1 or 2 of the other programs. If you need closing cost assistance But, what's unique it's a 100% Financing So you don't need a 2nd or a 3rd lien on the property. Your interest rates are typically lower Than if you combine it with a down payment assistance programs And you don't have to repay any down payment assistance It has a monthly factor It's like mortgage insurance upfront It's financed at a monthly component Much less than FHA So if you can qualify for this program It's better than FHA And As I mentioned, rates and payments Are typically lower on this program So USDA is really a great program. Great! And on average How much does the home buyer have to come in with out-of-pocket? So Again, we are financing the whole loan Purchase price up to 100% So the only thing remaining is then the closing costs Typically, plan on around 3% of the purchase price for funds to close. The question there then becomes, Well, Where does that come from? Typically, we ask the seller to cover those costs And if we can get the seller to cover 3% Then, the buyer may only need to come in with an earnest money deposit. And they may even get most or all of that back. If the seller is covering all the fees. One unique feature about USDA Versus all other loans is that if the home appraises for more than the purchase price We can finance the closing costs Up to that appraised amount So, no other loan I know that we can actually finance the closing costs. on that type of loan What type of home buyer is this program ideal for? So certainly those that don't have access to money for a down payment Anyone that wants to live that doesn't have to live within a metropolitan area because, again, the house has to be in an area that is not in a high densely populated area It's also suited well for people who have some credit issues and anybody that qualifies for this program would definitely be better served than going FHA so those type of people. And besides the Area restrictions are their any other property restrictions? So property restrictions are going to be similar to FHA They'll do manufactured homes They'll do homes with Casitas So no real other restrictions. Just if it conforms to the FHA guides then it should qualify for USDA There's a couple little quirky things That you don't run into very often Like you can't actually have a barn on the property It definitely can't be for agricultural purposes It has to be for residential purposes Ok Great! Thanks Steve.

Conventional Loan | FHA Loan | VA Loan

usda rates Benefits of a VA Loan The following are benefits that you can enjoy from a VA Loan that you can avail from Fairway Independent Mortgage Corporation 0% Down Payment Conventional loans generally require up to 20% down payment in order to secure a home loan. But for those who are qualified, the 0% down of VA Loans is a lifeline. No PMI Private Mortgage Insurance (PMI) is a requirement for borrowers who finance more than 80% of their home's value. It results in an additional monthly expense. Since VA Loans are government backed, banks do not require you to buy PMI anymore. Competitive Interest Rates Conventional loans without government backing have less competitive interest rates because banks are taking on more risk. The VA guaranty is advantageous since it gives lenders a greater degree of safety and flexibility. This means that the borrower gets more competitive rates than non-VA loans. This, along with no PMI, can substantially lower your monthly payment. Call Fairway Mortgage at 843-757-7552 NOW! Easier to Qualify VA Loans are easier to qualify for because the loan is backed by the government. Therefore, banks assume less risk and have less stringent qualification standards for applications under VA Loans. On the other hand, non-VA loans hold stricter qualification procedures which makes it harder for prospective homebuyers to qualify. Basic Allowance for Housing Basic Allowance for Housing (BAH) is a significant benefit for qualified active military members. Lenders can count your Basic Allowance for Housing as effective income. This allows borrowers to use BAH to pay some or all of their monthly mortgage costs. BAH varies based on the borrowers: Pay grade, Geographic location, Number of dependents No Pre-Payment Penalty The pre-payment penalty is the result of paying off a home loan before it matures. It is a way for financial institutions to recoup some of the interest payments that lenders miss to collect. The VA Loan allows borrowers to pay off their home loan at any point without having to worry about a pre-payment penalty. With the absence of a pre-payment penalty, borrowers are free to consider future home purchases and refinancing options. Call Fairway Mortgage at 843-757-7552 NOW!. usda refinance

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