The USDA Guaranteed Home Loan Program in Linden is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in Linden. 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 Linden 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 Linden! 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
hey this is Chris the mortgage pro today I'm gonna teach you how to qualify for a mortgage well there's a lot of things obviously that a lender has to look at so let's go through each and every one of them the first one that stops everybody and they get all nervous is credit now some people have outstanding credit and some people hey they have challenges maybe they had late pays you know bad things happen to good people all the time and sometimes that's the reason for a low credit score sometime sit's you don't even have enough credit so let me give you a way to think about how the lender will look at your credit they say to themselves hey if this guy can't pay a $25 a month credit card are we gonna lend them three hundred thousand dollars it's a small way of thinking don't think fold up think bigger think I'm not gonna go out to dinner I'm gonna pay my bills first you pay your bills this is what my mama taught me first you pay your bills you pay the mortgage you pay all your other debts then you figure out a wheat and steak over eaten beans it's just a way to think if you think like that in a short period of time your credits gonna be good enough to fire your landlord okay next thing lender needs to know income well do you have job stability how long you been on your job look you could get a job and get approved the next day you really can but if you change jobs every three months well that job stability isn't there they want to see some kind of stability do they want to see income of course how do they know that you can afford to make that payment they need to know that you have the income they expect it to continue for usually three years is what they're looking for obviously you can get fire you can get laid off things could change but they have a reasonable expectation of three years going forward that the income will continue so they want to see that they'd love to see a history the stronger the history the stronger the case you could fire your landlord okay next thing they want to see downpayment they call this skin in the game if you put up your own money that you worked hard for for a down payment they say hey they got some skin in the game they're serious they're committed now if you put a zero down program and we have these zero down programs they work great for some people but it makes a little bit tougher for the underwriter to say yeah they're worth taking a shot on so we want to see a down payment sometimes people put $200,000 on a down on a four hundred thousand dollar house do they have some skin in the game it makes the underwriters decision way easier doesn't it and if a person can't put a thousand or two thousand dollars down it makes the underwriter a little nervous so take advantage of the programs save some money but be sure that you're ready to show you're committed to this transaction okay something else obviously the underwriter wants to see we need an appraisal of the property we have to know the lender needs to know that if it's a four hundred thousand dollar loan that the house isn't worth three hundred and fifty thousand dollars so the collateral is the last piece of the puzzle that they have to make sure it's worth it but that also protects you as the borrower why because if you commit to buying a house for $400,000and it appraises at three hundred and eighty thousand is that something you really want to do so this is designed to protect you and protect the lender that's a big deal okay not only do they want to see your credit but on the credit report it's a list of debts what do you mean well you have your car payment on there you have your credit cards you may have child support alimony we have to look at all the debts if you make $5,000 a month but you have $2,000a month in debt doesn't leave a whole lot for a house payment so we have to look at all the numbers versus your income so that's the last thing that they're gonna want to see how much is going out already because you're going to add on this new house payment okay so those are the five things that a lender needs to see they want to see your credit are you responsible do you pay your bills on time or do you make excuses for not paying them do you have crazy debt that's out of control that you can't handle when you add on house payment do you have income and job stability how's that going do you have five new jobs or one new job it doesn't really matter if you have two or three jobs but if you change your job on a regular basis not gonna work what else they want to see how much money you've saved what's in your 401k what's in your IRA what is in your bank do you save money do you have a financial responsibility that you are showing you are a responsible borrower those are the key things they want to see and obviously the appraisal they want to make sure the collateral is solid it protects the lender and protects you so this is Chris Trapani call me I'll help you figure it out and together we're going to fire your landlord!.
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.
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