100% Financing Raleigh NC

The United States Department of Agriculture: not just an organization for developing farming and agricultural policy.  The USDA’s Rural Development office has the goal of attempting to “improve the economy and the quality of life in rural America.”  Near the end of 2007, RD had provided over $80 billion in loans and grants which by now, the total amount is probably in the 90’s.  It all makes sense if you think about it – not many people want to live far away from the city and all of its amenities but if there’s 100% financing for the homes out there, why not?  Hey, I just personally bought a home in USDA territory with 100% financing, so I’m the perfect person to tell you what to expect and how to qualify.  First we’ll start with a useful link that you’ll need to orient yourself and because of the coding of the site, you’ll need it as a starting point to access all the points of eligibility. [ USDA Eligibility Page ] Go ahead and click on the link and take a quick look – you’ll see a navigation bar on the left, we’re going to be focusing on the property and income eligibility pages.
[Credit Scores] Like any loan program, a borrower must meet certain requirements to be eligible.  USDA loans require a good/fair credit score, much lower than traditional conforming loans, but still basically in check.  As of today, the majority of lenders that offer USDA loans require a 620 minimum credit score; not too bad – even with some dried up collections or lack of available credit, 620 is pretty achievable.  There are situations where your broker/loan representative can provide a written letter of credit explanation to the lender in case you’re close to the 620 cut-off.
[Income] There are income requirements or guidelines that you must fall in line with.  This program is primarily designed for those who have a median income.  A quick example: the income limit for two adults (no children or other residents) is $88,400.  If you’re unsure of your income eligibility – go to the USDA Eligibility Page, look for the first “Income Eligibility” section and click on the “Single Family Housing” link.  This will bring you to an income form that you’ll be able to perform an income calculation with.  Back to the example: just because you may be moving into a home with your significant other, doesn’t mean you have to both be on the loan- call us and we’ll get into the details a bit more.
[PMI] A great aspect of this program is the fact that you’re not going to have to pay PMI or private mortgage insurance.  When financing a home for more than 80% of its value, you have to pay mortgage insurance until you’ve accrued 20% equity in the home.  The PMI payment can range from $50 to $150 depending on the amount borrowed and the terms of the loan.  This is definitely a chunk of your monthly mortgage payment and when it’s gone you notice.  A definite plus to the USDA option.
[Interest Rates] The rates that are available for this program are fairly aggressive and very similar to what’s available for conventional rate products.  If you’re super curious to what an available USDA rate would be today, just ring us and we’ll let you know.
[Area Eligibility] You’ll be quite surprised how much of our lovely state is eligible for USDA programs – around 92% of North Carolina.  I recently helped a friend search for properties in and around Salisbury NC.  She had her eye on a bungalow in a small neighborhood on the west side of town.  After we consulted the eligibility map, we saw that thehome was just outside the eligibility zone, about 1 block away from being eligible.  She quickly spotted a similar home up the road and the rest is history.  The map is a bit tricky to use, but it should work in any browser and if you take a minute, you’ll be able to see what’s what.  There’s also an address finder application that you can use – do note however that it doesn’t find EVERY address on the map – you may want to contact us if you’re not completely sure.  Most Realtors will advertise USDA eligibility prominently on their listings, so you may not have to dig too much.
[$8,000 Credit] I mentioned the tax credit a few times previous, but it IS available to those who purchase a home with a USDA loan before November 30th.
So there you go, the basics on what’s required, what’s provided and what to expect.   The loan process runs parallel to that of conventional products – inspections, appraisals, etc.  This is definitely a solid way to buy smart and own in some really wonderful parts of NC.  I brushed the surface so if you’ve got any questions or have any comments, just contact us – we’re always available to talk in person or over the phone.
DNJ Mortgage
1350 Sunday Drive
Raleigh, NC 27607
919.459.6560
www.integritylender.com
http://www.integritylender.com/100-financing-no-money-down-loan