USDA Income Limits updated for 2017

The income limits for USDA no-down payment mortgages has been recently updated…of course this took place soon after I posted income limits! ūüėČ ¬†Just goes to show you that you have to keep in mind that guidelines are constantly changing in the mortgage industry and just because it’s published on a blog (or any website), it may not be the most current or accurate information. What that said…here is the updated post. [Read more…]

USDA Income Limits

EDITORS NOTE June 5, 2017: Of course USDA income limits were updated right after I published this post! Please click here for 2017 income limits for USDA mortgages in Washington state.

USDA offers a no-down payment mortgage program which is available in rural areas (typically a town with population of 10,000 or less). USDA does not have loan limits, the program is limited by household income and if the property is in a USDA designated location. [Read more…]

USDA Upfront Guarantee Fee Increase

2014-09-03_usdaUSDA has increased the upfront funding fee (aka “upfront guarantee fee”) by an additional 0.75 percent as of October 1, 2015. ¬†From USDA:

On October 1, 2015 the upfront guarantee fee for purchase and refinance loans will increase from 2 percent to 2.75 percent.  The annual fee will remain at 0.50 percent for purchase and refinance loans.  This change is necessary to maintain the program’s operational cost structure, which requires no congressional subsidy support to offset credit costs.

[Read more…]

Changes to USDA Mortgages

2014-09-03_usdaUSDA offers mortgages with no down payment for homes that are located in designated rural areas to borrowers who meet household income limits. The mortgage rates are very competitive and the mortgage insurance (technically called “guarantee fees”) are very affordable. It’s truly a great program for those who qualify and are buying a home in rural areas, like Duvall, Enumclaw or Anacortes.

Recently, USDA issued Handbook 3555 with updated regulations for USDA mortgages. Here are just a few of the changes:

[Read more…]

USDA back up and running

usdaUSDA, which offers zero down loans for homes located in designated rural areas, was effectively shuttered during the government shutdown. Once the shutdown was over, USDA had a delay in getting their cogs moving at full speed. We’ve received word that USDA is back to “normal”.

[Read more…]

NAR fighting to keep current boundaries for USDA Zero Down Loans

There’s just 10 days remaining before the boundaries determining eligible properties for USDA financing are set to change unless Congress takes action. I shared with you USDA had posted the “future” boundaries on their website back in April.¬†

[Read more…]

Reader Question: Can Closing Cost be financed with a VA Loan?

I received this email from one of our subscribers:

 ”…with a VA mortgage,  can you finance buyer closing costs in excess of the purchase price (e.g. not ask for seller financing contributions, but just borrow them in excess of the purchase price)”

With a VA mortgage, the buyers closing cost cannot be financed, with exception to the VA funding fee, regardless of the appraised value.

The VA loan amount is limited to the purchase price, appraised value or VA county loan limit (or VA jumbo loan amount)*, whichever is less.

*NOTE: VA does not set actual loan limits on counties. They do set a limit as to their maximum guarantee (meaning zero down financing). In the greater Seattle/King-County area, the loan limit for zero down financing is currently $500,000. Click here for a complete list of VA loan amounts per county.  VA loan amounts exceeding $500,000 in the Seattle/King County area are considered VA Jumbos and will require some down payment depending on the difference between the sales price and county loan limit. 

USDA loans, on the other hand, will allow for buyers closing cost to be financed IF the appraised value is higher than the sales price. The loan amount is limited to the appraised value and must be applied to bona fide closing cost.

USDA loans are also zero down programs and are only eligible in specific designated rural areas, like Snoqualmie, Carnation or Duvall, and to borrowers who meet certain household income limits. 

Sellers can contribute towards closing cost for both of these mortgage programs and currently, low mortgage rates are often paired with enough rebate pricing to cover a majority of the closing cost.

Thanks for your question!

USDA Rural reveals proposed new boundaries for Zero Down Mortgages

USDA Rural loans offers zero down financing to homes located in specific rural areas and to qualified borrowers who’s households who meet income limits.

Many Washington state home buyers have been anxiously waiting to see if they will impacted with the pending changes to USDA boundaries making zero down financing an option.

Recently USDA Rural Development updated their website with maps showing “future eligible areas” which will be based on census data from 2010. The proposed boundaries are set to go into effect as of October 1, 2013 baring Congressional Action. 

In order to have access to the maps, you’ll need to agree to USDA’s disclaimer.  Simply click the link for “future single family” and enter the property address to see if it is in an a proposed eligible area for USDA financing.

Meanwhile it’s “business as usual” with USDA home loans.

If you are interested in a USDA zero down home loan, or any mortgage for homes located in Washington state, I’m happy to help you!