The USDA Guaranteed Home Loan Program in Perth Amboy is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in Perth Amboy. 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 Perth Amboy 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 Perth Amboy! 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
Really quickly I want to talk about FHAand VA properties or loans compared to a conventional type product. A lot ofsellers are now are kind of shying away from FHA loans and and VA loans becausethey have different stipulations on the appraisals. They've got some old verbiagethat makes it a little bit troublesome sometimes. Things like handrails andchipping paint a few other things that come up on appraisals that can causeissues. They have to be remedied prior to actually moving in. They're legacy typerules that are still around today that don't make a lot of senseso sometimes sellers and selling agents don't like taking those offers. So whenat all possible they want to see conventional offer. I think it's a littlemisguided. Ultimately those two products are amazing for us especially the VAproduct it's an amazing amazing product. Unfortunately sellers right now arebeing told to shy away from them because of those things. So be aware of thatunderstand what you're getting yourself into. If you have to go FHA or VA though,they're great loans.
- Hey, it's Austin Schneiderhere and today we're gonna give you the pros andthe cons of a VA Loan. So a VA Loan is set upfor active and non-active military members as a perk for those who served in our military. Pro number one of a VA Loan is that there is no down payment required. Forget that 20%, forget that 3. 5%, you don't have to put anything down. Con number one is there's a VA funding fee which typically comes out to around 2% of the purchase price. Pro number two is you'regonna be saving money on Private Mortgage Insurance. You will not have to paythe up to a couple hundred dollars a month in thisMortgage Insurance. Con number two is thatthe VA Loan is intended for primary residence,meaning you need to be living in this home. Pro number three is that there's a higher debt to income ratio, meaningthat you can get a loan for a larger amount thanyou probably would be able to with a conventional loan. Con number three of a VALoan, it could be a turnoff to sellers, the 0% downsometimes makes them shake a little bit in their shoes, especially if it is acompetitive situation. Alright, guys, for moreon VA Loans pros and cons, visit us online at TheMortgageReports. Com. Thanks so much for watching, we'll see you on the next one. (upbeat music).
USDA Loan Limit in NJ | (888) 464-8732