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Old 09-15-2008, 05:08 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,596,642 times
Reputation: 249

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Countrywide came through with a rural program recently. I found out about it today. 100% Financing. No mortgage insurance. I think it is USDA backed. They are using the USDA rural zoning for approvals.

-100% financing
-6% sellers concessions allowed
-no monthly mortgage insurance
-no cash contribution or reserves required
-non-traditional credit lines are OK(phone bills, electric, gas, etc.)
-not limited to first time home buyers
-30 year fixed rate

-primary residence
-rural development eligible area

Good info for other brokers who don't know and buyers who have been on here looking.

Buyers I would suggest finding a broker who can broker countrywide if you need 100% financing.
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Old 09-15-2008, 07:10 PM
 
Location: Plano, Texas
1,676 posts, read 6,339,120 times
Reputation: 684
The program you are speaking about has been around for a long time and many lenders offer it. Unfortunatey there are a lot of guidelines that disqualify many people. This is really for people who want to live in rural areas and dont make alot of money. For your information, you can get 100% financing with a VA loan but that is for veterans of our armed services.
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Old 09-15-2008, 07:47 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,596,642 times
Reputation: 249
i was under the impression they stopped offering and just restarted to offer it. i have yet to even get a client that is a VA that needs to use the program.
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Old 09-15-2008, 09:10 PM
 
Location: Plano, Texas
1,676 posts, read 6,339,120 times
Reputation: 684
I was saying that veterans can still do 100% not meaning that veterans can use the usda program. but i guess a veteran could but there income would probably disqualify them.
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Old 09-15-2008, 09:14 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,105,251 times
Reputation: 1008
what lender doesn't offer USDA? lol
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Old 09-15-2008, 09:37 PM
 
Location: Western North Carolina
4,757 posts, read 7,549,839 times
Reputation: 9717
I just qualified for, and was approved for, a loan of this type. I am closing on this week. I have a great credit score, a long history of home ownership, but don't make a large salary and live in what is considered a "rural" area. I didn't have a lot of money to put down, so this loan was just what I needed.
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Old 09-15-2008, 10:13 PM
 
Location: Cary, NC
1,036 posts, read 3,630,193 times
Reputation: 503
As mentioned, tons of lenders offer this program. Its been around for a long time, but a lot of brokers jumped into the "sub-prime" 100% stated income, stated asset, no rent verifaction, pulse only loans. Loans like FHA, My Community and USDA were neglected because many hot shots perceived them too be too hard or slow and they wanted to pick the easy fruit.

USDA is a great 100% financing option, but you missed the big limitations. It is for "rural" property... although the definition of rural is very loose so you should always check into that. If its in a major city you won't be able to use it, but even some suburbs of cities are okay.

The real issues are there is an income limit, its ~80% of median for the county. Here in Wake County, NC the median income is in the $70k range, so for a 2 family household (the limits vary by # of people in house) is in the high $50k range. The other issue is debt to income is held to 41%, so its tough compared to FHA and other programs where high credit borrowers can get to 45-50% in some cases.

USDA is a good option to look into and is one of the few 100% options left now, but its not new and its best to work with someone that has been doing the program for years. Its not an easy loan that anyone can slap together and if its not done right you can waste 30-45 days to find out that USDA will deny it.


Quote:
Originally Posted by brokerdave View Post
Countrywide came through with a rural program recently. I found out about it today. 100% Financing. No mortgage insurance. I think it is USDA backed. They are using the USDA rural zoning for approvals.

-100% financing
-6% sellers concessions allowed
-no monthly mortgage insurance
-no cash contribution or reserves required
-non-traditional credit lines are OK(phone bills, electric, gas, etc.)
-not limited to first time home buyers
-30 year fixed rate

-primary residence
-rural development eligible area

Good info for other brokers who don't know and buyers who have been on here looking.
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Old 09-15-2008, 11:09 PM
 
Location: Charlotte
52 posts, read 116,737 times
Reputation: 23
I love USDA. If you have a good credit score and reasonable debt ratio (under 50%) you usually have no problem. And USDA is on 24 hour turn time right now. No PMI. Too bad Mecklenburg County has very few eligible areas.....
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Old 09-16-2008, 11:55 AM
 
Location: Cary, NC
1,036 posts, read 3,630,193 times
Reputation: 503
Quote:
Originally Posted by LJ Charlotte View Post
I love USDA. If you have a good credit score and reasonable debt ratio (under 50%) you usually have no problem. And USDA is on 24 hour turn time right now. No PMI. Too bad Mecklenburg County has very few eligible areas.....


I was surprised by how many Wake County and some other areas here in Central NC are okay for USDA. The process isn't that bad if you know the rules... same as FHA. I hear lots of buyers, Realtors and loan officers complain about how slow and tedious they are, but if you know the rules and put everything together then it is pretty easy.

People say that "sub-prime" loans were easier and faster, I never found that to be the case. I always prefered a good My Community or FHA loan.
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Old 09-16-2008, 12:02 PM
 
Location: Charlotte
52 posts, read 116,737 times
Reputation: 23
Yeah. It seems like everyone here in Charlotte is looking to ramp up their FHA, VA, USDA, gov't business, and learn how to do these deals. We are just doing what we've always done. It's surely given me a leg up in this market right now. Sounds like the same is happening for you....
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