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USDA Home Loans are the Real Deal for Denton County

by Jay Myers on February 12, 2009

in Affordable Housing

USDA Guaranteed Funding Home LoanOnce again I find myself having to tout and sound the trumpets about the USDA Rural Development Guaranteed Housing Loan Program after another successful closing. Next to the article Buying a Home with the Texas Veterans Land Board Program (TVLB) it is the most read item on this little blog, but has generated the most emails and phone calls. I welcome these inquiries with open arms of course, and hope that continues — although I do wish more Tex Vets would be reaching out to me as well — I know your out there because Google tells me your searching and finding this site day after day. I think military men and women perhaps like to do a lot of research on their own, and that is why only a handful have contacted me…at least I hope that is why.

But back to the USDA housing program — As I said I have talked with a lot of people about this program, prospective buyers, real estate pros, and mortgage people. Unfortunately, mainly clearing up misconceptions, and negative information put out there by <gasp> mortgage brokers and lenders that do not do them, or not educated on these programs. I have even had some tell me

“We stopped doing those last year because they are doing away with them”

Well if we have learned anything about our government in the last few years it is once they start doing something, they are slow to react or change things — The monies that fund the loan programs has already been allocated for 2009, and well… this is February and most of the money is still there waiting to be used. Besides, I have spoken recently to liaisons from the USDA, they have assured me the list of cities is still accurate, and the loan program is not going anywhere for a while. Furthermore, with all the talk about stimulus packages, the Fix Housing First Act and tax credits, I personally believe the government won’t screw this up for everyone who is willing and able to take advantage of it.

Next to questions about credit scores, and requirements and restrictions for the program, the most asked question, and biggest misconception among real estate professionals is the length of time to close on the sale. This last closing only took just over 3 weeks from the time an offer was made and accepted til the time of the closing. Granted, my preferred partner-lender worked diligently, and is very experienced on these programs, and I am sure would have preferred a little extra time. Also, I had an incredible client who when more paperwork was requested, or information was needed provided it expeditiously to the mortgage broker.

When everyone knows what is expected of them…things just move smoothly

So it is still my opinion if you are looking to buy a home in say:

  • Highland Village
  • Corinth
  • Little Elm
  • Argyle
  • Double Oak
  • Lake Dallas
  • Ponder
  • Sanger

Make sure your real estate agent and mortgage broker or lender are not scared or detouring you away from the USDA Loans for no good reason! Contact me if you would like a list of my experienced and preferred lenders.

This is really only the true 100% loan program out there for non-veterans, it is actually 102% Guaranteed program, and with home prices down as they are, it is really the only time I think financing everything — including closing cost is justified. So it is perfect for first-time homebuyers, and experienced home buyers alike!

Things to Remember:

  • No Down Payment Required
  • No Maximum Purchase Price
  • Meet the Adjusted Household Income Limits (Can’t make too much money)
  • Gift Money is Allowed
  • Interest Rates are very competitive
  • Must be your primary residence
  • Must Buy a home in an eligible area
  • No Minimum FICO Score Required (Need a stable and dependable credit history)

All Rights Reserved© Jay Myers (972) 510-7800 Licensed Real Estate Agent in Texas with Fathom Realty LLC

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{ 5 comments… read them below or add one }

renn March 9, 2009 at 10:00 PM

I am the incredible client?! :)

Jay Myers March 9, 2009 at 11:06 PM

Ha! Ha! Well if you want to identify yourself like that, Yes! you are the incredible client I was writing about here. You may win the award for easiest first-time buyer EVER! (Had to throw those keywords in there for the search engines :) )

David Brown May 31, 2013 at 5:52 AM

Our buyers are using USDA and I hope I live long enough to close. Slow is an understatement. It might be a great deal for the buyer, but it stinks being the seller.

Jay Myers June 4, 2013 at 12:51 AM

Mr Brown,

Sorry to hear your having issues on your closing. I will say confidently though usually any delays come from the buyers mortgage broker, not the insurer, in this case USDA. If USDA kicks it back with conditions I tend to believe those were things the mortgage broker should have foreseen. Going through underwriting with the USDA right now is taking 7-10 days, in a typical to 30 – 45 day closing the mortgage broker should have the internal underwriting done with plenty of time to account for this extra step of going through USDA and still meet those dates.

As I have stressed on this site for years, this is why it is so important for buyers to work with a competent mortgage broker with plenty of experience with USDA underwriting. Furthermore, it is equally important for sellers agents to check on or even investigate the lenders who are doing the pre-qualification letters on deals before executing a contract. If the financing just doesn’t feel right move on to another offer or just express the financing is a concern and request loan approval before executing OR take back-up offers and be ready to take off running with another deal OR counter-offer with a non-refundable earnest money request. There are all kinds of things that can be done to accommodate you with missed closing dates. Best of luck and I hope you have a successful closing very soon.

Mary Lou July 3, 2013 at 1:08 PM

Always take advantage of a great deal if its available. Not sure why an agent would choose to ignore that type of opportunity for their clients while it is still available.

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