Heads up: this video is about USDA Guaranteed, not USDA Direct. Guaranteed: offered by many lenders and provides 0% down, a great option for 90% of people Direct: only offered through USDA, slow process, and requires heavy documentation and possible subsidies that need to be paid back, only for low income buyers
I'm glad it went fast! USDA is one of the most document-heavy loans. They can be a real pain, but worth it in the end! - Kyle Seagraves winthehouseyoulove.com
Yours is rare....they normally are so slow sellers don't want to deal with them as it ties up their house and where i live in Texas there isc like 6 buyers for every one house and they offer personal cash above the asking so say it's selling for 150. K a buyer will say I'll offer 10 k cash above that amount and they out offer each other.....its crazy I think as the houses aren't worth it. Anyway because usda takes so long as they have lots of hoops to jump through they figure why bother with all that when i have 6 other offers that close fast!!!
deseray ramirez yes but if you do the direct loan directly with rural development, you would owe subsidy. A USDA guaranteed loan is done through a bank with no subsidy and you can sell whenever. You may be upside down financing closing costs tho
I don’t get it. The bank said we qualify for 90,000. We can’t even buy a dump for 90,000. USDA approved us for 262,000. We are building a home with habitat that is estimated at 168,000 to build. I think building is a good price. I am pumped and happy these programs are available.
Ryan Petree you can build a house with a contractor or usda-approved manufactured home dealers that do the site prep in addition to moving the modular pieces. You can also talk to catholic charities, habitat for humanity or other similar non profits to do a sweat equity group build. The OP is likely working with a USDA direct loan, not a guaranteed loan which is what the video is about.
I was pre-approved on yesterday and put in an offer on a home which the seller accepted. Everything you are saying is pretty much what I was told. We shall see how the rest of this process goes.🤞🏾
I was approved by lender and USDA. I ended up signing a release and cancellation form from the home, hubby and I decided we wanted to continue looking for a different home.
I've had a USDA loan for five years. Upside: even with a moderate/low income they will help you get a house. The better credit you have, the more likely you will be approved. My loan is 3.4 percent on 34 years. They can be frustrating to deal with (it's the government), but a good realtor will get you through. Downside: A bank considers the house yours and they are letting you borrow their money to get it. The government considers that, since their money bought the house, it's pretty much theirs and you are a lease to own. Some of their rules are: you cannot use the land to make money, you cannot have renters, you cannot have a business on the property, and if you sell any portion of your land, you have to have their permission and the money goes to the payment. If you are able to lower your taxes or insurance, it takes a year for them make the changes in your payments. They're not looking over your shoulder, but they always let you know they are there.
you said your not allowed to use the land to make money, does this apply to someone who works from home? such as me as i will trade monday to friday at home thanks
We have a USDA loan and love it. We found a house on 3.3 acres right outside of the city we work in. It is a great option if you are eligible and find the right zip code.
I got a USDA low income loan in November. They are strict on the property they will loan on. Has to be in really good shape. My loan was $80,000, I pay 342. A month with a 3% interest. Town needs to be less than 35,000 people
This is the first I’ve heard about population restrictions. Isn’t the map the guide to go by? I’ve seen the map include areas that have more than 35,000 people
I've heard about this loan alot, and wanted to go with this loan for buying a house. I didn't know that many lenders didn't really know much about this loan! My husband and I struggled finding a knowledgeable lender. We got approved and are closing this week!
Alot of real estate don't want to be involved with it ...its a pain in their ass and alot of risk that you'll ever close cause of all the documentation.
I have a USDA loan and I bought my first house it was stressful due to the waiting period but it was so worth it my property appraised for higher than the loan I literally walked in signed papers and then moved into the house with no money exchanged outside my insurance.
You’ve just pointed out a crucial information where “closing cost can be financed up to the appraisal amount” so many of us in this with little out of pocket. Thank you for your time and effort
I bought my home 90 miles away (1 way) from my job. I travel 5 days a week. We live in Southern California. I would never able to own a home without USDA Loan in Southern California.
I can vouch for pretty much everything in this video. In 2016 I purchased my home under a USDA 502 direct home loan w/ $0 down @ %3. When I signed the papers for the house they even cut me a check for $2600 (I still don't know what for lol). The only downside was that the office I applied through was VERY slow about all the paperwork every step of the way. It took over 6 months to finally close the deal and move in. Without this type of loan I'd probably still be renting so I definitely recommend this to others
Thanks for the insight! I have zero experience dealing with USDA Direct, we only work with USDA Guaranteed. That's a bummer that it took that long! Guaranteed only take 30-45 days.
Same here! I'm paying off our credit cards, credit score is already in a good range, just want to get debt free so we can qualify for the loan and retire. We are planning to sell on eBay full time when we retire. I am wondering if this loan will work for us?
FYI for anyone looking to purchase a home - due to coronavirus most lenders are now requiring a minimum score of 660 for FHA and USDA loans. If you keep hitting this roadblock when mortgage shopping, don't give up and keep calling other lenders. Fortunately, I reached out to a loan officer I met over a year ago and they're willing to work with us despite not having a 660 score.
You have a terrific teaching method. You are clear and concise. You don't make people more stressed in an already stressful time. Thank you for sharing your knowledge!!!!
USDA buyer here it’s at least a 3 month process the houses we tried to buy didn’t pass their strict guidelines we finally found a home that passed so do your due diligence and ask your realtor to make sure the house qualifies for a usda loan
Ah that's a bummer! An experienced realtor should know not to write a USDA offer on a home that won't pass USDA property guidelines. I'm glad you were able to get it closed though!
I have a whole notebook taking notes throughout these videos. I am geared to buying a home for us....NY is expensive so i cannot afford to make mistakes. Your vids are life saving and changing (never heard of USDA loans)
We have a USDA loan for a house we are now selling. There are a lot of headaches involved. Our mortgage was subsidized by the USDA, so they will require that subsidy to be repaid after you sell the house. There are ways to offset that recapture, though. First, your closing costs on the sale are deducted from the recapture. Second, the value that any capital improvements you may have made (they have a list of what qualifies) could be deducted, as well. One caveat: if you sell your house for a profit, they can reduce the amount of recapture you may qualify for, so keep that in mind. If you keep the house for the life of the mortgage (33 years), and have had a subsidy, you will then be required to pay off that subsidy (minus any capital improvements) when the mortgage is satified.
Subscribing for answers I never knew I had questions for. I think, nowadays, too many people aren't even aware of the options they have. Thank you for all your wonderful videos on finances and getting your life in order. I'm sure I'll be referencing these quite frequently in the future.
Also if u are very low income, you can get a DIRECT vs Guarantee. Brokers wont tell u cause they dont offer them. Rather, your local USDA Office does. You can get your int rate even lower w/ Direct vs. Guarantee.
Marie.... “Brokers” WILL tell you about them “if’ you don’t qualify for a standard USDA Guaranteed loan. BTW that “lower” interest rate isn’t free money like some may think. There’s this thing called recapture fees that a person generally needs to pay when they sell or refinance their home. This is the difference between the rate they should have paid & the reduced rate they paid. This can add up to tens of thousands of dollars in short amount of time. Lastly working with a professional licensed mortgage originator vs USDA Direct is like going to the dentist & getting your teeth cleaned vs having a root canal.
Shawn hello. Is a direct not a good way to go? I was approved now am thinking should I move forward I am low income age 62 gave me money towards my payment 100 a month 2.75 rate for 33 years but price of home 110.000 already in it. It’s a refi my rate with PennyMac is 3.5 so I’m saving 150 a month problem is. I’m on ssdi can’t work my part time job due to corona virus funds are tight. I’m thinking. Should I just sell it. Then where do I go , though about tiny homes but where to put them so I guess this stay at home order has given me panic attacks lol
Thanks for info. Fixing to start contract on a home with usda loan. This helped me understand the numbers involved and it seems like i should be ok as long as the appraisal is good.
When we bought our house with USDA. We asked the seller to pay for closing cost. So, basically we just pay the appraisal fee but we got our earnest money and appraisal fee back after closing.
@@montigo0000 it took us 30 days to start to finish. Took USDA 3 days to look over the documents from the bank underwriter. During the time I didn't care if there was PMI or not. We were excited to get the house with zero down and seller was paying for the closing cost.
So glad I found your channel. You explain all this so thoroughly. So much useful information. I'm going to watch your other videos and subscribe. I want a CD of you reading poetry or bedtime stories. No, I'm not kinky. You have the most soothing, calming and relaxing voice I have ever heard. Listening to you would get babies to sleep in a heartbeat. I used the acid test, my dogs listened to you and did not bark. First time that has ever happened.
My lender tried to go the FHA route. I’ve spoken to six lenders in North Carolina. It’s a no go no one would give me a loan due to my student Loans. I’m glad for those who prequalified.
Having 5 acres threw me out of the game on USDA loan for this farm house. Looks like I can get a FARM loan on the house and land (through the USDA) IF the loan fails through an AG loaning bank. BTW if you want an AG (farm) loan for livestock and equipment it seems you need to be in the farm business for 3 years. I am hoping to use my VA loan for this house or FHA .Also expensive houses do not seem to fit into what this loan was designed for .Really detailed Vid .TY !
USDA doesn’t like anything income producing unfortunately! Farm loans are great, though. I’ve always connected with Rural 1st to refer out for farm loans.
Wow...I just subscribed n want to say thank u for being so informative. I'm watching most of your videos because I'm interested in buying a home here in Florida.
Clayton Homes where I bought my manufactured home, said my contract took the longest time they had ever had. I think it was 18 months, because I had a Direct loan officer that was new and I was her guinea pig. I'm 76, post-heart attack. I wondered sometimes if I would live through it. There's way more I could say. It was just one failure after another from the newbee loan officer.
Regarding the bankruptcy part, you are partially correct but there is more to it; §3555.151 Eligibility requirements (h) repayment ability (3) (ii) A bankruptcy in which debts were discharged within 36 months prior to the date of application by the applicant. A lender may give favorable consideration to applicants who have entered into a bankruptcy debt restructuring plan who have completed 12 months of consecutive payments. The payment performance must have been satisfactory with all required payments made on time, and the Trustee or the Bankruptcy Judge must approve of the new credit.
Thanks for the add! For clarification: Conventional - Ch 7 BK: wait 4 years from discharge - Ch 13 BK: wait 4 years from discharge - Foreclosure: wait 7 years from deed transfer FHA - Ch 7 BK: wait 2 years from discharge - Ch 13 BK: 1 year on-time payments and court approval is needed - Foreclosure: wait 3 years from deed transfer VA - Ch 7 BK: wait 2 years from discharge - Ch 13 BK: 1 year on-time payments and court approval is needed - Foreclosure: wait 2 years from deed transfer USDA - Ch 7 BK: wait 2 years from discharge - Ch 13 BK: 1 year on-time payments and court approval is needed - Foreclosure: wait 3 years from deed transfer
I worked for rural development, there are huge differences between direct and guaranteed loans. You are talking about guaranteed loans. Direct loans are handled 100% by the government and are typically subsidized which is due in full if you ever sell the home or pass it on to heirs.
I am a Realtor I have been trying to get a USDA loan to work for 4 years . I work in the one area in my county that is eligible for USDA but try finding a buyer who qualifies and a property at the same time! There are a lot of older manufactured homes at the right price point but they won’t qualify. There are other more expensive homes but to afford them would put the buyer outside the income limits. Will keep trying
Thank you so much for watching and commenting Ella! Keep up the great work on your channel! Feel free to shoot me an email if you'd like to explore working on a video together → kyleseagraves@hey.com
What happens when everything is said and done, you apply, qualify, close on the loan, and are living in your new home...But you get a raise at work, or your partner works a lot of overtime and your income raises say $10K over the income cap? Is it irrelevant at that point?
Such a clear and thorough explanation! Looks like I'd be better off with a farm loan since I plan on engaging in agricultural enterprises. Do you have a video on that? PS I especially appreciated the warning about the risks associated with buying 0% down.
I have been conditionally approved. I think I’ve provided all of the documents the lender has requested (so far). Went from sending a bunch of documents to nothing. The silence is killing me lol. Supposed to close on the 26th.
Question. I hope you see this!! I’ve heard different bankruptcies can have different waiting periods for mortgage loans after discharge. My wife and I finished a chapter 13 at the beginning of the year. Is there still a 3-year waiting period for that for USDA loans? I’ve heard no waiting period after discharge and a waiting period. Thanks & great video! Very easy to follow.
@@WinTheHouseYouLove Thanks for responding! All of our bankruptcy payments were made on time. Do you mean a year of on-time payments as in since Dec 2019 or a year starting after our discharge?
Ohhh. Ok. I wasn’t sure if it was the same thing.. because I knew the seller could pay for closing costs, I just didn’t know it was a thing of having a cap on what they’re allowed to cover. That makes sense. Thanks!!
I wish I would have seen this video over a 2 months ago. Just closed one and it was a headache. The lender New American Funding, the LO and the closing attorney had never closed one before and they fumbled this deal quite a bit.. Took almost 90 days to close.
Thanks for the very informative info looking to go for the usda loan in the August/September time frame of this year! Seems like I check all the boxes as far as requirements just curious if they’d approve me for this house listed for 415k
I’ve been told many different things regarding this specific question. Perhaps you could be of some help. Does student loan debt affect DTI? Very informative video, by the way. Thank you for the upload.
It does! I have two videos on student loans and mortgages: 1) How To Get A Loan With An Income Based Repayment Plan IBR Student Loans: czcams.com/video/GedU_lRQY3g/video.html 2) Can You Buy A Home With Student Loan Debt?: czcams.com/video/3Vu4j0ZKi4M/video.html
0 percent down is Great way to be upside down on a mortgage. Also PMI will paid that much longer. If you’re broke you shouldn’t be trying to buy real estate.
Thanks! First, I screen record my iPad and use a drawing app called Adobe Fresco. Then, I record the video while drawing any notes on the iPad. Next, I import both the screen recording and video into Final Cut Pro. I overlay the screen recording on top of the video and sync them up so you can see me draw and talk at the same time.
Here are the scores they use: Experian: FICO Score 2 based on Experian data; also known as Experian/Fair Isaac Risk Model Version 2 Equifax: FICO Score 5 based on Equifax data; also called Equifax Beacon 5.0 TransUnion: FICO Score 4 based on TransUnion data; also called TransUnion FICO Risk Score 04
How about Charge offs? I have no debt anymore, no monthly payments - except I have three old credit cards charged off years ago. I am paying one because I'm being sued... how long do I have to wait after that?
1. Please describe the procedure to get this loan... Do I go to a lender to get preapproval first or do I get preapproval from USDA directly before I go in search for the property? 2. Can I use this loan to buy raw land? Can it be use as a construction loan to build a house or prefab on this raw land? I am interested in doing homesteading off grid. 3. Can I put on 20% to prevent paying mortgage insurance. Thanks in advance.
2. It can be used as a construction loan. It just has to be through approved contractors I believe. 3. You can put money down but if you put 20% then that kinda defeats the whole purpose of USDA Loans. The main benefit is the 0% down, and PMI is the necessary evil that is required for 0% down.
1. I suggest finding a local mortgage broker. 2. You can only buy land if you're using a USDA construction loan with it. 3. You cannot remove USDA mortgage insurance no matter how much you put down.
Rhode Island has a First time home buyer program that provide up to 100% loans with $7500 down payment assistance for first-time home buyers. I bet other states have something similar
We make 1k more than the income limit. Bitter sweet. We are looking at GSFA open doors. A bit for origination and a repayable amount. If we find something we really like we’ll go for it. Other than that we will stack cash and wait for he right home.
I want to buy property in a rural area and build a house. What is the process? Do I apply for the USDA loan first and then buy the property I want then build the small cottage according to the zoning laws? What do I do first? What are the steps? Do I have to have the property first? How about the contractors and builders.
Thank you for the all information about USDA loan Your explanation was very easy to understand We have some investment properties and now trying to purchase our primary house so this information will help us for sure! When you have a chance, would you consider to make a video about cash out mortgage? We are considering to have that for our investment properties to buy more, and support our primary house purchase Would be wonderful if you can compare with home equity line of credit. I did subscribe your channel so I won’t miss your videos!
Thanks Kyle! Im looking forward to see your explanations about cashout refi VS HELOC. (BTW, we currently have mortgages on our investment properties) I saw your website - good to know that you are licensed at FL too, that’s where we have investment properties.
Hi ! Is it possible to get approved for a USDA loan on a house that is 3 hours away from your current city but that you plan on moving to if the loan is accepted?
You'll have to prove to the underwriter that it will indeed be a primary residence. Normally this is through having employment lined up where you're buying
You can rent out rooms if you live in the property. But you'll need to live in the home for at least a year before you can rent out the whole house. Kyle Seagraves → winthehouseyoulove.com
Heads up: this video is about USDA Guaranteed, not USDA Direct.
Guaranteed: offered by many lenders and provides 0% down, a great option for 90% of people
Direct: only offered through USDA, slow process, and requires heavy documentation and possible subsidies that need to be paid back, only for low income buyers
Thanks for watching ;)
👌🏼
If I am paying for my son's college tuition but the loans are in his name, do I need to include it in my debt to income ratio for my loan?
Can I get an USD A loan to refinance?
So what lenders work with USDA?
I just used the USDA loan. It went pretty fast they required a lot out of me. It only cost me around $800 after closing costs.
I'm glad it went fast!
USDA is one of the most document-heavy loans. They can be a real pain, but worth it in the end! - Kyle Seagraves winthehouseyoulove.com
Congratulations 🎉
🙏 Praying we qualify as well
Can you sell a USDA LOAN HOME after 2 years?
Yours is rare....they normally are so slow sellers don't want to deal with them as it ties up their house and where i live in Texas there isc like 6 buyers for every one house and they offer personal cash above the asking so say it's selling for 150. K a buyer will say I'll offer 10 k cash above that amount and they out offer each other.....its crazy I think as the houses aren't worth it. Anyway because usda takes so long as they have lots of hoops to jump through they figure why bother with all that when i have 6 other offers that close fast!!!
deseray ramirez yes but if you do the direct loan directly with rural development, you would owe subsidy. A USDA guaranteed loan is done through a bank with no subsidy and you can sell whenever. You may be upside down financing closing costs tho
I don’t get it. The bank said we qualify for 90,000. We can’t even buy a dump for 90,000.
USDA approved us for 262,000. We are building a home with habitat that is estimated at 168,000 to build. I think building is a good price. I am pumped and happy these programs are available.
Awesome! I'm glad it worked out!!
Wait you can get a loan to build a house? Do you have to own the property first or how does that work?
Ryan Petree you can build a house with a contractor or usda-approved manufactured home dealers that do the site prep in addition to moving the modular pieces. You can also talk to catholic charities, habitat for humanity or other similar non profits to do a sweat equity group build. The OP is likely working with a USDA direct loan, not a guaranteed loan which is what the video is about.
Jackie V the USDA direct loan has a 33 or 38 year term. A bank, even with a USDA guaranteed loan, will only do 30 years.
How do you apply for habitat home?
I was pre-approved on yesterday and put in an offer on a home which the seller accepted. Everything you are saying is pretty much what I was told. We shall see how the rest of this process goes.🤞🏾
Yay!! Congratulations! Best of luck :)
Where did you get you pre-approved ?
pre-approved by USDA or your lender?
Congratulations.. getting ready to go this route in the near future. I do have a question for you. What does is mean to have 115% medium income?
I was approved by lender and USDA. I ended up signing a release and cancellation form from the home, hubby and I decided we wanted to continue looking for a different home.
I've had a USDA loan for five years. Upside: even with a moderate/low income they will help you get a house. The better credit you have, the more likely you will be approved. My loan is 3.4 percent on 34 years. They can be frustrating to deal with (it's the government), but a good realtor will get you through. Downside: A bank considers the house yours and they are letting you borrow their money to get it. The government considers that, since their money bought the house, it's pretty much theirs and you are a lease to own. Some of their rules are: you cannot use the land to make money, you cannot have renters, you cannot have a business on the property, and if you sell any portion of your land, you have to have their permission and the money goes to the payment. If you are able to lower your taxes or insurance, it takes a year for them make the changes in your payments. They're not looking over your shoulder, but they always let you know they are there.
Thanks for your input!
Does running a business include an online business
That's a really good observation,now I have a second thought about those loans,
thanks for warning.
you said your not allowed to use the land to make money, does this apply to someone who works from home? such as me as i will trade monday to friday at home thanks
Wow
This guy has a soothing radio voice. My wife said so.
Oh, and this video is very educational! 👍
Haha thank you! I'm glad it was helpful!
Win The House You Love on to your other videos! I’ll try not to fall asleep. (Damn radio voice!)
I thought the same thing!
Its like unintentional ASMR
Lol I was trying not to mention that and stay focused on the content haha. I started to post I could listen to him read a computer manual.
We have a USDA loan and love it. We found a house on 3.3 acres right outside of the city we work in. It is a great option if you are eligible and find the right zip code.
That's wonderful! Thanks for your insight!
the map shows you if the house you want is located in an approved area, does it show you the areas thats approved before you go through the process?
How long after receiving bank approval did it take to get USDA final approval???
I’m 19 looking to buy my first home. My father told me about USDA loans and your video helped me so much!
Awesome! I'm glad it helped!
I had given up the dream of ever owning a house, but your video has restore it. Thank you!
I'm so glad I could be a part of bringing that dream back to life :)
I had giving up too I have three kids and low income and the banks always tell me no
We just applied for a USDA yesterday! Praying we get pre-approved!!! I feel confident after this video. Thank you so much.
Awesome, congrats, that's a big step!!
Ashley what about closing costs do they help with that at all?
J. Hutchens I heard a lot of people makes the owners pay for closing cost
Tracey O ......please explain
It’s a loooooong process so have patience and don’t get upset because they hate answering any questions typically.
I got a USDA low income loan in November. They are strict on the property they will loan on. Has to be in really good shape.
My loan was $80,000, I pay 342. A month with a 3% interest.
Town needs to be less than 35,000 people
They are pretty strict! Very similar to FHA appraisal standards.
This is the first I’ve heard about population restrictions. Isn’t the map the guide to go by? I’ve seen the map include areas that have more than 35,000 people
Thanks for this!!! If you dont mind how much money did you spend throughout the process. I greatly appreciate it
I've heard about this loan alot, and wanted to go with this loan for buying a house. I didn't know that many lenders didn't really know much about this loan! My husband and I struggled finding a knowledgeable lender. We got approved and are closing this week!
Surprisingly a lot of lenders don't educate well ono it! Congrats on the new home!!
$1200.00 STIMULUS #2 DIVINE DECREED DIRECT DEPOSIT + Capital Cash Currency $$$ Correlating CHARLES' CoronaColor-CODE-09 Cures. Counter-combating ''Coronavirus-COVID-19" contagion curses. Courageous commission calling cause, chosen clean clinical civic conditions, correctly cultivated colorful culinary crops, customs, comprising conceptual commerce = $$$. Co-creative computerized cyberspace childcare certified cooperation communions vs corporation companies. Commander Chief COLOR KINGDOM New World Creative Arts via "The New World Order" Officially Ordained! www.coloringdomnwca.com.
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@stangmaster 2 report it...your comment doesn't do anything
Alot of real estate don't want to be involved with it ...its a pain in their ass and alot of risk that you'll ever close cause of all the documentation.
@@angelgirldebbiejo tell me more @glensummit99@yahoo.com
I have a USDA loan and I bought my first house it was stressful due to the waiting period but it was so worth it my property appraised for higher than the loan I literally walked in signed papers and then moved into the house with no money exchanged outside my insurance.
Awesome!!!
How long after receiving bank approval did it take to get USDA final approval???
You’ve just pointed out a crucial information where “closing cost can be financed up to the appraisal amount” so many of us in this with little out of pocket. Thank you for your time and effort
You're welcome!
Your videos are so helpful!! I don’t feel as overwhelmed starting the home buying process
Thanks so much Chrissy! I’m glad they’ve helped :)
So is a usda Loan recommendable?
@Good Morning Good Afternoon and Good Night Good grief! You're hitting on Chrissy haha
I bought my home 90 miles away (1 way) from my job. I travel 5 days a week. We live in Southern California. I would never able to own a home without USDA Loan in Southern California.
Yikes! That's a rough commute!
@J F Do you live in Southern California?
$1200.00 STIMULUS #2 DIVINE DECREED DIRECT DEPOSIT + Capital Cash Currency $$$ Correlating CHARLES' CoronaColor-CODE-09 Cures. Counter-combating ''Coronavirus-COVID-19" contagion curses. Courageous commission calling cause, chosen clean clinical civic conditions, correctly cultivated colorful culinary crops, customs, comprising conceptual commerce = $$$. Co-creative computerized cyberspace childcare certified cooperation communions vs corporation companies. Commander Chief COLOR KINGDOM New World Creative Arts via "The New World Order" Officially Ordained! www.coloringdomnwca.com.
BLACKSOUL1 Brown-Skin Brother: better beneficially bestowed blissful blessed bio-bodily baby born bloodlines by birthrights, brings big banking bonds - bounties - booties - bucks $$$. So sincerely solemnly says, 'Come Follow Me' >>> 'Take up your civilized cultural cross', loving heart's holistic Hue-Main healthy habits, of holistic healing humankind and helping humanity harmonize, hereon; HENRY'S HAPPY HEALING HOMESTEAD = Habitat Humane Healthy Household - Hometown - Homeland. >>>>> huemain-homestead.blogspot.com/
What city did you buy your home in? I’m in Southern CA also
@@Thuyn717 Hi Thuy, I bought my home in Desert Hot Springs next to Palm Springs. 90 miles from Anaheim, CA
I can vouch for pretty much everything in this video. In 2016 I purchased my home under a USDA 502 direct home loan w/ $0 down @ %3. When I signed the papers for the house they even cut me a check for $2600 (I still don't know what for lol). The only downside was that the office I applied through was VERY slow about all the paperwork every step of the way. It took over 6 months to finally close the deal and move in. Without this type of loan I'd probably still be renting so I definitely recommend this to others
Thanks for the insight! I have zero experience dealing with USDA Direct, we only work with USDA Guaranteed. That's a bummer that it took that long! Guaranteed only take 30-45 days.
Crazy I don’t get any of this I think I make to much money
@@1pyroace1 That may be... The 502 direct loan is income based.
So thankful for this comment thank you!!! You truly helped me a lot!! Thx Matt
This is exactly what I’m doing. People help is out there. Research and use these programs. Hopefully this time next year I will be in my new house.
Awesome!! Keep up the good work!
Same here! I'm paying off our credit cards, credit score is already in a good range, just want to get debt free so we can qualify for the loan and retire. We are planning to sell on eBay full time when we retire. I am wondering if this loan will work for us?
This is the best video on this topic. I've been in real estate for a decade. I will be sharing this.
Thanks so much, I'm glad you enjoyed it!
FYI for anyone looking to purchase a home - due to coronavirus most lenders are now requiring a minimum score of 660 for FHA and USDA loans. If you keep hitting this roadblock when mortgage shopping, don't give up and keep calling other lenders. Fortunately, I reached out to a loan officer I met over a year ago and they're willing to work with us despite not having a 660 score.
Great addition! COVID is tightening some lending restrictions.
Love how thorough and in depth this video is without any complicated mortgage jargon. Super easy to digest. Thank you! Subbed
I'm so glad it wasn't over complicated. Thanks so much for watching and subscribing!
You have a terrific teaching method. You are clear and concise. You don't make people more stressed in an already stressful time. Thank you for sharing your knowledge!!!!
Wow, thank you!
USDA buyer here it’s at least a 3 month process the houses we tried to buy didn’t pass their strict guidelines we finally found a home that passed so do your due diligence and ask your realtor to make sure the house qualifies for a usda loan
Ah that's a bummer! An experienced realtor should know not to write a USDA offer on a home that won't pass USDA property guidelines.
I'm glad you were able to get it closed though!
How long after receiving bank approval did it take to get USDA final approval???
I have seen other videos regarding USDA loans, but your video by far has been the most informative and up-to-date regarding the process🙌🏾
Glad it was helpful!
I have a whole notebook taking notes throughout these videos. I am geared to buying a home for us....NY is expensive so i cannot afford to make mistakes. Your vids are life saving and changing (never heard of USDA loans)
That's awesome! Your hard studying is going to be off well!!
Kyle Seagraves → winthehouseyoulove.com
We have a USDA loan for a house we are now selling. There are a lot of headaches involved. Our mortgage was subsidized by the USDA, so they will require that subsidy to be repaid after you sell the house. There are ways to offset that recapture, though. First, your closing costs on the sale are deducted from the recapture. Second, the value that any capital improvements you may have made (they have a list of what qualifies) could be deducted, as well. One caveat: if you sell your house for a profit, they can reduce the amount of recapture you may qualify for, so keep that in mind. If you keep the house for the life of the mortgage (33 years), and have had a subsidy, you will then be required to pay off that subsidy (minus any capital improvements) when the mortgage is satified.
Thanks for sharing your experience!
Subscribing for answers I never knew I had questions for. I think, nowadays, too many people aren't even aware of the options they have. Thank you for all your wonderful videos on finances and getting your life in order. I'm sure I'll be referencing these quite frequently in the future.
I'm glad to hear!!
You're welcome, I'm so grateful that these videos have been helpful :)
Also if u are very low income, you can get a DIRECT vs Guarantee. Brokers wont tell u cause they dont offer them. Rather, your local USDA Office does. You can get your int rate even lower w/ Direct vs. Guarantee.
Marie Great addition! USDA does have a direct program that can be beneficial for the right buyer!
Win The House You Love can you please do a video on Direct vs guarantee. Please let
What is this DIRECT vs Guarantee about ????
Marie.... “Brokers” WILL tell you about them “if’ you don’t qualify for a standard USDA Guaranteed loan. BTW that “lower” interest rate isn’t free money like some may think. There’s this thing called recapture fees that a person generally needs to pay when they sell or refinance their home. This is the difference between the rate they should have paid & the reduced rate they paid. This can add up to tens of thousands of dollars in short amount of time. Lastly working with a professional licensed mortgage originator vs USDA Direct is like going to the dentist & getting your teeth cleaned vs having a root canal.
Shawn hello. Is a direct not a good way to go? I was approved now am thinking should I move forward I am low income age 62 gave me money towards my payment 100 a month 2.75 rate for 33 years but price of home 110.000 already in it. It’s a refi my rate with PennyMac is 3.5 so I’m saving 150 a month problem is. I’m on ssdi can’t work my part time job due to corona virus funds are tight. I’m thinking. Should I just sell it. Then where do I go , though about tiny homes but where to put them so I guess this stay at home order has given me panic attacks lol
This video was amazing! Answered all the questions I had clearly and thoroughly! Subbed!
Thank you so much for watching!! :)
Thanks for info. Fixing to start contract on a home with usda loan. This helped me understand the numbers involved and it seems like i should be ok as long as the appraisal is good.
You're welcome! Awesome, I'm glad to hear it helped! Best of luck!
This man’s voice is so soothing. 😍
Thanks!
I know, right?
When we bought our house with USDA. We asked the seller to pay for closing cost. So, basically we just pay the appraisal fee but we got our earnest money and appraisal fee back after closing.
Awesome!!
How long would you say the process took start to finish? No PMI? Interest buy down?
@@montigo0000 it took us 30 days to start to finish. Took USDA 3 days to look over the documents from the bank underwriter. During the time I didn't care if there was PMI or not. We were excited to get the house with zero down and seller was paying for the closing cost.
@@petertruong8611 what kind of documents did you have to have to give them. I don't have rental history so I'm worried about that
@@montigo0000 I don't think they care about rental history. Just credit check and income
So glad I found your channel. You explain all this so thoroughly. So much useful information. I'm going to watch your other videos and subscribe.
I want a CD of you reading poetry or bedtime stories. No, I'm not kinky. You have the most soothing, calming and relaxing voice I have ever heard.
Listening to you would get babies to sleep in a heartbeat. I used the acid test, my dogs listened to you and did not bark. First time that has ever
happened.
I'm so glad it's been helpful!
Haha and glad I was able to help quiet barking dogs :)
I just got my USDA-RD Loan and we are waiting to see if the sellers will accept our offer.
Awesome, best of luck!
God bless Charlie.
How long after receiving bank approval did it take to get USDA final approval???
Thank you, I didn’t read about USDA loans in my mortgage guide. So it was nice to know these exist.
My pleasure!
My lender tried to go the FHA route. I’ve spoken to six lenders in North Carolina. It’s a no go no one would give me a loan due to my student Loans. I’m glad for those who prequalified.
Ah that's a bummer to hear!
Having 5 acres threw me out of the game on USDA loan for this farm house. Looks like I can get a FARM loan on the house and land (through the USDA) IF the loan fails through an AG loaning bank. BTW if you want an AG (farm) loan for livestock and equipment it seems you need to be in the farm business for 3 years. I am hoping to use my VA loan for this house or FHA .Also expensive houses do not seem to fit into what this loan was designed for .Really detailed Vid .TY !
USDA doesn’t like anything income producing unfortunately! Farm loans are great, though. I’ve always connected with Rural 1st to refer out for farm loans.
👌🏼
So is has to be less than 5?
@@WinTheHouseYouLove why doesn't usda want anything that makes a income on the property?
@@queerdor .Not sure on the land amount for a house . It looks like mine was too much land .
New subscriber! Thanks so much for the info. Great video!
You're welcome! I'm glad you're here with us Taylor!
Wow...I just subscribed n want to say thank u for being so informative. I'm watching most of your videos because I'm interested in buying a home here in Florida.
You are so welcome!
Just got one and found my house
Awesome, congrats!!!
How long after receiving bank approval did it take to get USDA final approval???
Chunky pen 🖊 is the 😎 coolest thing I’ve heard all day this made my day 😃
Hahah it caught me off guard!
Thank you for this video, i am currently looking into applying for a usda loan and i found this very informative.
You're welcome! Thanks for watching!
Clayton Homes where I bought my manufactured home, said my contract took the longest time they had ever had. I think it was 18 months, because I had a Direct loan officer that was new and I was her guinea pig. I'm 76, post-heart attack. I wondered sometimes if I would live through it. There's way more I could say. It was just one failure after another from the newbee loan officer.
So helpful! Thank you for sharing!
You are so welcome!
Regarding the bankruptcy part, you are partially correct but there is more to it; §3555.151 Eligibility requirements (h) repayment ability (3) (ii) A bankruptcy in which debts were discharged within 36 months prior to the date of application by the applicant. A lender may give favorable consideration to applicants who have entered into a bankruptcy debt restructuring plan who have completed 12 months of consecutive payments. The payment performance must have been satisfactory with all required payments made on time, and the Trustee or the Bankruptcy Judge must approve of the new credit.
Thanks for the add! For clarification:
Conventional
- Ch 7 BK: wait 4 years from discharge
- Ch 13 BK: wait 4 years from discharge
- Foreclosure: wait 7 years from deed transfer
FHA
- Ch 7 BK: wait 2 years from discharge
- Ch 13 BK: 1 year on-time payments and court approval is needed
- Foreclosure: wait 3 years from deed transfer
VA
- Ch 7 BK: wait 2 years from discharge
- Ch 13 BK: 1 year on-time payments and court approval is needed
- Foreclosure: wait 2 years from deed transfer
USDA
- Ch 7 BK: wait 2 years from discharge
- Ch 13 BK: 1 year on-time payments and court approval is needed
- Foreclosure: wait 3 years from deed transfer
By far the best video, thank you!!
Glad it helped!
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thank you Kyle! you really helped get everything into perspective for me. Well done!
Glad it was helpful!
Loved how you explained the process so well 👍👏👏👏👏👏
Thanks so much 😊
Informative, super cool film set, cute guy talking about loans, what more could you ask for?
Thanks for the kind words!!
This helped me understand!
Thanks for watching!
I worked for rural development, there are huge differences between direct and guaranteed loans. You are talking about guaranteed loans. Direct loans are handled 100% by the government and are typically subsidized which is due in full if you ever sell the home or pass it on to heirs.
Thanks for the addition! I should have clarified in the video, but I added a comment clarifying this afterwards.
Win The House You Love sweet! There is so much confusion about the two loans online and I’ve seen scam ads for “USDA home loans” on Facebook.
How long after receiving bank approval does it normally take to get USDA final approval???
Excellent information!! Thank you for this video!
Glad it was helpful! Thanks for watching!
God I wish they would have thought me all this while I was in high school. Thank you for making this video
Thanks for watching!
Thank you this help me so much. Waiting on my USDA loan 🙏🙏🙏
Glad it was helpful!
How long after receiving bank approval did it take to get USDA final approval???
This is so helpful and motivating thank you!!
You’re welcome! I’m glad it was helpful!!
I am a Realtor I have been trying to get a USDA loan to work for 4 years . I work in the one area in my county that is eligible for USDA but try finding a buyer who qualifies and a property at the same time! There are a lot of older manufactured homes at the right price point but they won’t qualify. There are other more expensive homes but to afford them would put the buyer outside the income limits. Will keep trying
I've always viewed USDA loans as a tight box, they're not always easy to hit all the requirements
Thanks for the info. Really good video.
Glad it was helpful!
Phenomenally detailed video Thank you so much for making this!!
Thank you so much for watching and commenting Ella!
Keep up the great work on your channel! Feel free to shoot me an email if you'd like to explore working on a video together → kyleseagraves@hey.com
@@WinTheHouseYouLove Oh why thank you! I appreciate the positive feedback. That's so kind of you to offer! Will do!
Where do I apply? I’m in Oregon.
You can text #apply to 937-358-6542 and I can connect you
What happens when everything is said and done, you apply, qualify, close on the loan, and are living in your new home...But you get a raise at work, or your partner works a lot of overtime and your income raises say $10K over the income cap? Is it irrelevant at that point?
Yep, it's irrelevant at that point :)
Such a clear and thorough explanation! Looks like I'd be better off with a farm loan since I plan on engaging in agricultural enterprises. Do you have a video on that?
PS I especially appreciated the warning about the risks associated with buying 0% down.
Thanks! I'm glad it was helpful!
I don't have any on farm loans right now.
You are fiiiiiine good info thanks
Glad it was helpful!!
I have been conditionally approved. I think I’ve provided all of the documents the lender has requested (so far). Went from sending a bunch of documents to nothing. The silence is killing me lol. Supposed to close on the 26th.
It can be a rough wait! Hang in there!
Please make sure you provide an update.
lol the doggie meme after the statement about having to bring money to the buyers...
Haha I figured that'd be a fun one to put in there
You explained this very well bro thanks
Thanks for the compliment. My pleasure. :)
Question. I hope you see this!! I’ve heard different bankruptcies can have different waiting periods for mortgage loans after discharge. My wife and I finished a chapter 13 at the beginning of the year. Is there still a 3-year waiting period for that for USDA loans? I’ve heard no waiting period after discharge and a waiting period. Thanks & great video! Very easy to follow.
You'll need 1 year on-time payments and court approval is needed
@@WinTheHouseYouLove Thanks for responding! All of our bankruptcy payments were made on time. Do you mean a year of on-time payments as in since Dec 2019 or a year starting after our discharge?
Thanks for not shouting.
😂😂 what’s up with all these CZcamsrs shouting at the camera
VERY informative video on USDA loans! The only thing I’m not sure I fully understand is, what the closing credit is? Thanks!
I'm glad it's helpful! The closing credit is the amount the seller will pay to cover your closing costs :)
Ohhh. Ok. I wasn’t sure if it was the same thing.. because I knew the seller could pay for closing costs, I just didn’t know it was a thing of having a cap on what they’re allowed to cover. That makes sense. Thanks!!
I wish I would have seen this video over a 2 months ago. Just closed one and it was a headache. The lender New American Funding, the LO and the closing attorney had never closed one before and they fumbled this deal quite a bit.. Took almost 90 days to close.
Ah dang, sorry to hear that! I hope the next one is smoother!!
How long after receiving bank approval did it take to get USDA final approval???
Thanks for this great video. Very educational.
Thank you so much for watching!
Thanks for the very informative info looking to go for the usda loan in the August/September time frame of this year! Seems like I check all the boxes as far as requirements just curious if they’d approve me for this house listed for 415k
You’re welcome! USDA does have loan limits depending on your area you can check out here: www.rd.usda.gov/files/RD-SFHAreaLoanLimitMap.pdf
Win The House You Love such a BIGG help with this journey I look to take thanks so much you earned my sub ! Keep up the great work
Thanks!! Glad I could help! The whole real estate world can be too overwhelming at times, so it’s always great to have as much info as you can
@@sarahcunningham1539 Correct, direct has limits and guaranteed does not.
@@WinTheHouseYouLove thanks for the quick response!
Can you rent the home out?
After you live there for at least 1 year
I have a question. If you are married do both of you have to be on the loan?
You do not :)
Anyone who has used an USDA loan to build a house on a lot please explain your experience
Ooh, I'd love to hear answers to this too
Thank you so much. This is very helpful.
You’re very welcome! Thanks for watching!
I’ve been told many different things regarding this specific question. Perhaps you could be of some help. Does student loan debt affect DTI? Very informative video, by the way. Thank you for the upload.
It does! I have two videos on student loans and mortgages:
1) How To Get A Loan With An Income Based Repayment Plan IBR Student Loans:
czcams.com/video/GedU_lRQY3g/video.html
2) Can You Buy A Home With Student Loan Debt?:
czcams.com/video/3Vu4j0ZKi4M/video.html
Yes.. you cannot qualify if you have student loans.
i SLeePz Not true. I have student loans and qualified. They have to be in repayment to not count against your income.
0 percent down is Great way to be upside down on a mortgage. Also PMI will paid that much longer. If you’re broke you shouldn’t be trying to buy real estate.
Great insight, I agree with you!
Thanks for this info!!!
Any time! Thanks for watching!
This is great. Im more curious on what software allows you to do videos like this with watching current writing or drawings. Great vid!
Thanks!
First, I screen record my iPad and use a drawing app called Adobe Fresco.
Then, I record the video while drawing any notes on the iPad.
Next, I import both the screen recording and video into Final Cut Pro. I overlay the screen recording on top of the video and sync them up so you can see me draw and talk at the same time.
Rate is great but they do require a down payment at least a 502 direct does.
USDA is 0% down
Did you hit about wanting to build a house using an USDA loan?
Not in this video • Kyle Seagraves → winthehouseyoulove.com
Thank you for breaking this option down can you tell me how many acres you can have? I know there's a limit.
There is no maximum acreage limit. However, the land cannot exceed more than 30% of the total appraised value
Thanks for this video, so for the usda loan option they look at the FICO 8 score? It’s the highest out of all my other credit scores
Here are the scores they use:
Experian: FICO Score 2 based on Experian data; also known as Experian/Fair Isaac Risk Model Version 2
Equifax: FICO Score 5 based on Equifax data; also called Equifax Beacon 5.0
TransUnion: FICO Score 4 based on TransUnion data; also called TransUnion FICO Risk Score 04
Win The House You Love thanks!
How about Charge offs? I have no debt anymore, no monthly payments - except I have three old credit cards charged off years ago. I am paying one because I'm being sued... how long do I have to wait after that?
How can i find a lender that is qualified and knowledgeable of the usda guaranteed loan in North Carolina?
1. Please describe the procedure to get this loan...
Do I go to a lender to get preapproval first or do I get preapproval from USDA directly before I go in search for the property?
2. Can I use this loan to buy raw land? Can it be use as a construction loan to build a house or prefab on this raw land? I am interested in doing homesteading off grid.
3. Can I put on 20% to prevent paying mortgage insurance.
Thanks in advance.
2. It can be used as a construction loan. It just has to be through approved contractors I believe.
3. You can put money down but if you put 20% then that kinda defeats the whole purpose of USDA Loans. The main benefit is the 0% down, and PMI is the necessary evil that is required for 0% down.
TriPlexGames Thank you for your prompt reply!
1. I suggest finding a local mortgage broker.
2. You can only buy land if you're using a USDA construction loan with it.
3. You cannot remove USDA mortgage insurance no matter how much you put down.
Win The House You Love I see. Thank you.
Rhode Island has a First time home buyer program that provide up to 100% loans with $7500 down payment assistance for first-time home buyers. I bet other states have something similar
Thanks for the addition!
I checked out this program in northern NV. We are eligible for a $350k home if my wife quits her job. but what if she wants to return to work later?
With most programs, you just have to meet the guidelines when you close on the loan and it doesn't matter what happens afterwards
Did your wife actually quit and did you close on the home with USDA?
@@jjak_euchre No, I am working on getting credit score up/
Thank you! Subscribed
Thanks for watching!
Requirement is having to have a stellar credit score.
500 is the minimum, Joe. I've done several USDA loans below 580. If you need help email me kyle@winthehouseyoulove.com
Thanks for this very helpful video.
Glad it was helpful!
Thank you Kyle I’ll look into the info. 🤩
You're welcome, glad to help!
So does the zero income part of the loan mean I can't rent out property purchased with a USDA loan?
You could rent it out after a year of living there
We make 1k more than the income limit. Bitter sweet. We are looking at GSFA open doors. A bit for origination and a repayable amount. If we find something we really like we’ll go for it. Other than that we will stack cash and wait for he right home.
Ah that's a bummer! Keep up the good work!
Can you buy a 4-Plex with a USDA loan? Or does that obviously count as income producing?
Not with a traditional USDA loan, but you can through the USDA Direct program.
I want to buy property in a rural area and build a house. What is the process? Do I apply for the USDA loan first and then buy the property I want then build the small cottage according to the zoning laws? What do I do first? What are the steps? Do I have to have the property first? How about the contractors and builders.
Talk to a lender first to get approved, then they'll walk you through each step :)
Kyle Seagraves → winthehouseyoulove.com
@@WinTheHouseYouLove thank you
Thank you for the all information about USDA loan
Your explanation was very easy to understand
We have some investment properties and now trying to purchase our primary house so this information will help us for sure!
When you have a chance, would you consider to make a video about cash out mortgage?
We are considering to have that for our investment properties to buy more, and support our primary house purchase
Would be wonderful if you can compare with home equity line of credit.
I did subscribe your channel so I won’t miss your videos!
You're welcome! Thanks for watching!
I'll add it to the list!
Be well,
Kyle
www.winthehouseyoulove.com/
Thanks Kyle!
Im looking forward to see your explanations about cashout refi VS HELOC.
(BTW, we currently have mortgages on our investment properties)
I saw your website - good to know that you are licensed at FL too, that’s where we have investment properties.
This video is sooooooo helpful! Thank you! Do you know if you can purchase a newly built home with a USDA loan?
Yay!! Thank you for watching! You absolutely can purchase a newly build home with USDA
Hi ! Is it possible to get approved for a USDA loan on a house that is 3 hours away from your current city but that you plan on moving to if the loan is accepted?
You'll have to prove to the underwriter that it will indeed be a primary residence. Normally this is through having employment lined up where you're buying
I’m aware you have to use the property as a primary residence. But as the owner, can you to rent it out? Either the whole house or rooms?
You can rent out rooms if you live in the property. But you'll need to live in the home for at least a year before you can rent out the whole house.
Kyle Seagraves → winthehouseyoulove.com