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It’s hard to think of any negative aide affects about a USDA loan. 100% mortgage, no PMI. However, everything has pros and cons about it.
Otherwise everyone would be doing it right?
Here is a Summary:
USDA Home Loan Pros
Opportunity?
There are U.S.Veterans who:
• Are in need of up to $1.5 million in
financing
• Have limited cash for down payment
or closing costs
• Have little reserves
• Are first-time homebuyers who may
not be eligible for traditional financing
• Require more flexibility in calculating
household income and payment ratios
Solution? Provide qualified U.S. Veterans
solutions, by offering:
• Loan amounts up to $1,000,000 million on
1-unit owner occupied purchase properties
• Cash Out, 2nd Homes, NOO, and 2-4 units
cap at $417,000 ($625,500 in AK and HI)
• Up to 100% LTV/CLTV with full entitlement
at a maximum loan amount of $1,094,625
• Fully assumable to qualified borrowers
• Purchase or Refinance a O/O property
• Lender & Seller paid Buy-downs available
• Interested party contributions allowed
• Borrower’s must qualify based on income
and credit history
• No reserves on loan amounts to $417,000
($625,500 in AK and HI)
USDA Home Loan Cons
- does not offer a 15 year mortgage
- income cap for each county
- limited to certain areas
- limited funding available
- not available for manufactured housing
- cannot own other homes
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