USDA Loans – Still Funding!

IMPORTANT NOTICE :
We are still closing and funding the USDA RURAL HOUSING GUARANTEED LOAN PROGRAM! 100% Financing in Rural Areas

Last month the United States Department of Agriculture Rural Development Administration issued a Single Family Housing Guaranteed Loan Program Fiscal Year 2012 Commitment Notice.

Funding for the Single Family Housing Guaranteed Loan Program will not be available for a short period of time at the beginning of Fiscal Year 2012, which started October 1, 2011. During this temporary lapse of funding, Rural Development has been issuing Conditional Commitments “subject to the availablity of commtment authority” for purchase and refinance transactions.

Some lenders are currently not closing loans with a conditional commitment issued by Rural Development if the commitment is subject to the availability of commitment authority.

Landmark Professional will close and fund a USDA loan once the loan is cleared to close if the conditional commitment is subject to the availability of commitment authority subject to all other closing requirements.

As a reminder, the announcement also included the FY 2012 fee structure which will be as follows for all loans that receive a conditional commitment from Rural Development on or after October 1, 2011:

2 percent up-front fee for purchase transactions;
1 percent up-front fee for refinance transactions; and
0.3 percent annual fee based on the average scheduled unpaid principal balance of the loan, for both purchase and refinance loans transactions.
Please contact me if you have any questions in regard to this notice.
Karen Cox 503 385-4050 or at karen@landmarkprofessional.net

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USDA/Rural Development

Great News!!

USDA announced yesterday that they have authorized the issuance of Conditional Commitments for Rural Housing programs to take place after the current funding is exhausted (which is on pace to happen this week). 

THIS ALLOWS US TO START TAKING NEW APPLICATION ON RURAL HOUSING LOANS EFFECTIVE IMMEDIATELY!

The guarantee fee will increase from 2.0% to 3.5% for purchases, and from 0.5% to 2.25% for USDA to USDA rate/term refinances.  This will help self-sustain the funding for the Rural Housing program going forward.

Please note:  Any files in process that are not able to get a commitment at the 2.0% guarantee fee will have to be re-disclosed at the 3.5% guarantee fee.

USDA Loans

The National USDA office confirmed that funding will be depleted by the end of April due to incredible volume (their FY 2010 budget was double FY 2009). This will impact all states and they anticipate that funding will probably be depleted before the end of April as lenders rush to get loans submitted.  They will not be issuing Conditional Commitments “subject to the availability of funds” since they are still 5 months out from their budget renewal. They are seeking other sources of funding but nothing promising at this time.

If you are looking for 100% financing using the USDA or Rural Development loan, please get them in now, funds may not be available much longer! 

USDA are budgeted every October and funds are used until they are exhausted. These funds are first come first serve so get it in quickly!!  Please call with any questions or to get your loan approved now. 

As an editorial comment, I believe that Congress will have to appropriate emergency funds to USDA because we all know that the key to our economic recovery is the housing market and this program is vital to that end.  I would expect this to be a short lived panic but need to make you aware. Call me at 503 585 1105, Karen Cox Landmark Mortgage.

New Products for Veterans

flag1While many loan programs and products are shrinking on a daily basis and becoming more restrictive, the Federal Government is committed to helping our Veterans.

On October 10, 2008, President Bush signed into law, the Veterans’ Improvement Act of 2008.  With the passage of the bill, Veteran’s can now refinance their current mortgage’s and take cashout up to 100% of their homes’ value. Previously, they were limited to 90%.  This bill also increases the maximum loan amount in some areas.  The last thing that this bill does is extend the offering of the adjustable rate mortgage option for Veteran’s.  These adjustable rate programs are less risky since they have lower caps on the annual and lifetime adjustments of the loan.

A veterans’ existing loan does not have to be a VA loan to take advantage of this program.  If you purchased your home with a conventional or subprime loan, this is another option for veterans that need to refinance.

If you have any questions, please email me at karen@landmarkmortgage.com or call at 503 585 1105.

More about the USDA loan program.

 I briefly mentioned this program in my last blog. I thought I could address a few more details for those of you who may be looking at homes in a rural area or know someone that really wants to get into a home but doesn’t have a down payment.

What:
 The United States Department of Agriculture (USDA) has a loan program targeted for rural communities. Yes, I know that they stamp the approval on the beef that we eat, but they also govern several non-food related sectors. The program is similar to other mortgages offered by Landmark Mortgage. Much like an FHA loan, USDA does not service the loan. The government entity provides a security or guarantee to the bank. If the borrower were to default then USDA will step in and fund the loss to the bank.
Who:
The USDA rural development home loan program is available for those who are looking to purchase a primary residence and do not own any other properties. It is a great option for a first time home buyer. To qualify for the loan the borrower’s income must fall below the maximum income limit based on the size of your family and county in which the property is located.
Where:
In the Willamette Valley there are several great opportunities for this program. With “rural development” being the key term in this program, it is important to know that most Salem, Keizer, and Albany homes will not qualify as being located in rural communities. However, most towns surrounding these areas qualify. USDA states that most towns with a population less than 25,000 should qualify. To check if a specific address is eligible for this loan visit the USDA property eligibility website.
Why:
Because other than the government guaranteed VA (veterans) loan, USDA is the only other option for 100% financing.

For specific details about this program or to see if you qualify please feel free to contact me at karen@landmarkmortgage.com.