USDA Loan Company Norristown, PA | USDA Loan Info | (888) 464-8732

Hey this is USDA Loan Info again! In this blog post and like most of our blog we’re comparing conventional loans to FHA loans to VA loans to USDA Loans in Norristown and finding out exactly which one’s the best one?

Which Loan Are We Talking about and is the USDA Loan in Norristown right for you?

You know so many consumers are curious. Which type of Mortgage Lender in Norristown provider loan is best for me?

Today I want to help you figure out which one is going to benefit you and your family the most, for you a short-term and/or long-term goals because it’s different for everybody.

Now there are advantages to each one of these USDA loans in Norristown so some have lower interest rates, some have lower fees there’s all kinds of different things to think about!

Now most people have a tendency to just look at one thing. The payment! And if you’re going to be going for pre-qualification on USDA Loans in Pennsylvania and surrounding areas, we have to set the score straight.

Which is cheaper?

Well, it’s understandable when you’re buying a house you say, hey which which payment is cheaper?

But, again how long you gonna be in that house?

Is there PMI? Will the PMI disappear?

When will it disappear?

If the PMI is gonna disappear in five years butI’m gonna be here in 20 years, maybe this other loan is better a long term! So we have to look at these things as a whole. So now you can see why USDA Loans are appealing.

Now people ask you all the time what’s today’s interest rate?

It’s impossible to answer that question, because your finances and every person’s finances are as different as fingerprints!

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When we look at the whole situation you have to understand that all these items, represent different risks to the lender and the higher the risk the higher the interest rate!

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The lower the risk for example if you put a lot more money down, obviously a lower risk right?

Or if you have a higher FICO score lower risk, right?

Well we have to look at these things as a whole to help you determine what interest rate you’re gonna get and that also helps determine which program is right for you!

Okay now it’s time we’re gonna get into the nitty-gritty we’re gonna get into the comparison. Number one – conventional loan. A conventional loan has a minimum of a 620 FICO Score Credit score if you’re not sure what a FICO score is that is your mortgage credit score.

Now on an FHA loan vs USDA some lenders go as low as a 500 my company goes down to a 550 the truth is nobody gets approved at 500 anyway and on a VA loan we’re also looking at the same thing many lenders go to 500 company goes to 550.

PMI and Mortgage Insurance is Called MIP

Okay PMI mortgage insurance and on FHA in Norristown it’s called MIP mortgage insurance premium now on a conventional loan,

What happens is it is very very dependent on what is your credit score somebody with a very high credit score might have a very low mortgage insurance payment, but if you have a 620 FICO score your mortgage insurance payment could be way high.

At least according to USDA Loan Credit Eligibility Guidelines.

Now on FHA: FHA has pretty much standardized, here is your MIP rate remember they’re the same thing they just call them something else here’s your MIP rate it doesn’t matter if you have a 620 a 580 a 550 or 800 FICO score makes no difference you’re gonna pay the same rate.

mortgage amortization

On a VA loan great news no PMI no MIP you got that one. Okay we’re almost halfway through the post so hit the subscribe button and hit the like button I appreciate that now if you’d like to comment, I will answer every single question personally and of course you’re welcome to share this with anybody you think it’s valuable for!

Mortgage USDA Loans and Debt Ratio

A debt ratio is the percentage of your gross. Gross income is before they take taxes out.

A percentage of your gross income to your debt. Now on a conventional loan with a high FICO score they’re gonna allow you or a 50% that includes your car payment, your credit cards, student loans, alimony, child support.

All those kind of things plus the new house payment, that should be no more than 50% now if you have a lowerFICO score, it’s probably gonna be 45% that’s how conventional works.

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Now let’s take a look at FHA with a 580 FICO score or above, here’s what’s basically going to happen. You’re gonna probably be approved to a 56. 99%let’s call it 57%, again that includes all your debts plus the house payment as a payment.

Lastly we have a VA loan. Now a VA loan works very very different it looks at how much money is left over after paying all this stuff.

Hard Money Correspondent Program for Lenders & Mortgage Brokers

And it’s called residual income and everybody depending on what area of the country you live in and how many people in your family there’s a certain formula for it.

Now if you have 20% more than that just to give you an example if it was a thousand dollars but you have 20% more $1200 and a high FICO score you may even go up to 60 or 65% debt ratio which is unbelievable and its highest in the whole industry.

Interest rate on a conventional loan you’re often going to hear Fannie Mae, Freddie Mac those are conventional loans. On a conventional loan you are gonna have a higher interest rate than either FHA or VA.

On an FHA loan it’s lower than conventional and right about the same as VA they have virtually the same interest rates.

Hard Money Correspondent Program for Lenders & Mortgage Brokers

Down payment on a conventional loan you’re usually looking at a 3% down payment. People ask me about a conventional loan Fannie Mae Freddie Mac yes those are conventional loans.

Now if we look at anFHA loan an FHA loan is gonna require a three and a half percent down payment as long as your FICO score is 580 or above. If it’s 579 or below it requires a 10%down payment and of course for our veterans who honorably served, we thank you!

You get a zero percent down payment loan. Okay so we talked about PMI, MIP mortgage insurance whatever you want to call it. But there’s also something called upfront mortgage insurance.

no down payment mortgage

Now on a conventional loan there is no up front mortgage insurance, but those of you with a high FICO score might want to pay some, and they eliminate the monthly PMI payments forever.

So that’s a big deal and that’s only available on a conventional loan and it doesn’t make sense unless you have a really good FICO score. On an FHA loan we take the loan amount and multiply it by 1. 75 percent we have to add that to the loan amount.

Hey this is USDA Loan Info again. In this blog post and like most of our blog we're comparing conventional loans to FHA loans to VA loans and finding out exactly which one's the best one? Which one's right for you? You know so many consumers are curious. Which loan is best for me? Today I want to help you figure out which one is going to benefit you and your family the most, for you a short-term and/or long-term goals because it's different for everybody. Now there are advantages to each one of these loans so some have lower interest rates, some have lower fees there's all kinds of different things to think about! Now most people have a tendency to just look at one thing. The payment! Which is cheaper? Well, it's understandable when you're buying a house you say, hey which which payment is cheaper? But, again how long you gonna be in that house? Is there PMI? Will the PMI disappear? When will it disappear? If the PMI is gonna disappear in five years butI'm gonna be here in 20 years, maybe this other loan is better a long term! So we have to look at these things as a whole. Now people ask you all the time what's today's interest rate? It's impossible to answer that question, because your finances and every person's finances are as different as fingerprints! When we look at the whole situation you have to understand that all these items, represent different risks to the lender and the higher the risk the higher the interest rate! The lower the risk for example if you put a lot more money down, obviously a lower risk right? Or if you have a higher FICO score lower risk, right? Well we have to look at these things as a whole to help you determine what interest rate you're gonna get and that also helps determine which program is right for you! Okay now it's time we're gonna get into the nitty-gritty we're gonna get into the comparison. Number one - conventional loan. A conventional loan has a minimum of a 620 FICO Score Credit score if you're not sure what a FICO score is that is your mortgage credit score. Now on an FHA loan some lenders go as low as a 500 my company goes down to a 550 the truth is nobody gets approved at 500 anyway and on a VA loan we're also looking at the same thing many lenders go to 500 company goes to 550. Okay PMI mortgage insurance and on FHA it's called MIP mortgage insurance premium now on a conventional loan what happens is it is very very dependent on what is your credit score somebody with a very high credit score might have a very low mortgage insurance payment, but if you have a 620 FICO score your mortgage insurance payment could be way high. Now on FHA FHA has pretty much standardized, here is your MIP rate remember they're the same thing they just call them something else here's your MIP rate it doesn't matter if you have a 620 a 580 a 550 or 800 FICO score makes no difference you're gonna pay the same rate. On a VA loan great news no PMI no MIP you got that one. Okay we're almost halfway through the video so hit the subscribe button and hit the like button I appreciate that now if you'd like to comment, I will answer every single question personally and of course you're welcome to share this with anybody you think it's valuable for! Okay Debt ratio! A debt ratio is the percentage of your gross. Gross income is before they take taxes out. A percentage of your gross income to your debt. Now on a conventional loan with a high FICO score they're gonna allow you or a 50% that includes your car payment your credit cards student loans alimony child support all those kind of things plus the new house payment, that should be no more than 50% now if you have a lowerFICO score, it's probably gonna be 45% that's how conventional works. Now let's take a look at FHA with a 580 FICO score or above, here's what's basically going to happen. You're gonna probably be approved to a 56. 99%let's call it 57%, again that includes all your debts plus the house payment as a payment. Lastly we have a VA loan. Now a VA loan works very very different it looks at how much money is left over after paying all this stuff. And it's called residual income and everybody depending on what area of the country you live in and how many people in your family there's a certain formula for it. Now if you have 20% more than that just to give you an example if it was a thousand dollars but you have 20% more $1200 and a high FICO score you may even go up to 60 or 65% debt ratio which is unbelievable and its highest in the whole industry. Interest rate on a conventional loan you're often going to hear Fannie Mae, Freddie Mac those are conventional loans. On a conventional loan you are gonna have a higher interest rate than either FHA or VA. Onan FHA loan it's lower than conventional and right about the same as VA they have virtually the same interest rates. Down payment on a conventional loan you're usually looking at a 3% down payment. People ask me about a conventional loanFannie Mae Freddie Mac yes those are conventional loans. Now if we look at anFHA loan an FHA loan is gonna require a three and a half percent down payment as long as your FICO score is 580 or above. If it's 579 or below it requires a 10%down payment and of course for our veterans who honorably served, we thank you! You get a zero percent down payment loan. Okay so we talked about PMI, MIP mortgage insurance whatever you want to call it. But there's also something called upfront mortgage insurance. Now on a conventional loan there is no up front mortgage insurance, but those of you with a high FICO score might want to pay some, and they eliminate the monthly PMI payments forever,. So that's a big deal and that's only available on a conventional loan and it doesn't make sense unless you have a really good FICO score. On an FHA loan we take the loan amount and multiply it by 1. 75 percent we have to add that to the loan amount. Simple example - if you have a hundred thousand dollar loan 1. 75 percent is $1,750, we're gonna add that, so you'd actually be borrowing $101,750 upfront mortgage insurance. On a VA loan there's a couple of different scenarios here the first time use of a VA loan it's 2. 15%so on that same hundred thousand dollars it's two thousand one hundred and fifty dollars added on on a second time use it's three point three percent so that's three thousand three hundred dollars now it doesn't sound like the end of the world but if you're taking a four hundred thousand dollar loan and it's a second VA loan that's three point three percent that is $13,200, that may make you say mmm this other loan might be better. Now though lastly if you're a veteran who happens to be disabled 10 percent or more there is no up front mortgage fee that there is no VA funding fee it doesn't exist for you. Okay seasoning from bankruptcy many Americans through the last few years they've had a hard time and they did file a bankruptcy on a conventional loan 4 years must have elapsed from the discharge not from when you started but from when it was finished before you're allowed to apply for a conventional loan. On an FHA loan it's only two years and on a VA loan it's only two years. Short sale seasoning. Well a lot of people ask what's a short sale? Well at a time when people owed more than the house was worth, they often went to the bank and said, hey my house is worth three hundred I owe four hundred and the bank accepted three hundred thousand dollars. That was called a short sale. Well if you have a conventional loan if you want to apply for a conventional loan it would be four years after a short sale. For an FHA loan it's three years must have elapsed from the time of the short sale and for a VA loan it's only two years. Again Vets win, they earned. A foreclosure well yes some people went into really hard times on a conventional loan we are looking at seven years before you can buy a home againOn an FHA loan it's only three years and For the vets - two years from a foreclosure okay Time back to work after an extended absence. Well on a conventional loan there is actually no real time frame but the lender will take a look they just want to make sure it's reasonable and everything is considered as a make sense situation you can be back to work for one month after or six months or a year off. On an FHA loan FHA guidelines require six months back to work with pay stubs proof they've been back to work for six months before they'll accept that income. On a VA loan it varies per lender some lenders will accept right back to work some might want six months or three months a lot of them will require just get past the probationary period on the job and you're good to go. Occupancy on a conventional loan you can buy for a rental, you can buy for a second home if maybe you want to live in the mountains or down by the beach on the weekends or obviously for an owner-occupied property. For a FHA and VA loan it is owner occupied. Only. Hopefully this blog post will help you need a decision making process which loan is right for you!

Simple example – if you have a hundred thousand dollar loan 1. 75 percent is $1,750, we’re gonna add that, so you’d actually be borrowing $101,750 upfront mortgage insurance.

Now though lastly if you’re a veteran who happens to be disabled 10 percent or more there is no up front mortgage fee that there is no VA funding fee it doesn’t exist for you.

Okay seasoning from bankruptcy many Americans through the last few years they’ve had a hard time and they did file a bankruptcy on a conventional loan 4 years must have elapsed from the discharge not from when you started but from when it was finished before you’re allowed to apply for a conventional loan.

no closing cost refinance

On an FHA loan it’s only two years and on a VA loan it’s only two years. Short sale seasoning.

Well a lot of people ask what’s a short sale?

Well at a time when people owed more than the house was worth, they often went to the bank and said, hey my house is worth three hundred I owe four hundred and the bank accepted three hundred thousand dollars.

That was called a short sale.

Well if you have a conventional loan if you want to apply for a conventional loan it would be four years after a short sale.

For an FHA loan it’s three years must have elapsed from the time of the short sale and for a VA loan it’s only two years.

Again Vets win, they earned.

A foreclosure well yes some people went into really hard times on a conventional loan we are looking at seven years before you can buy a home againOn an FHA loan it’s only three years and For the vets – two years from a foreclosure okay Time back to work after an extended absence.

Well on a conventional loan there is actually no real time frame but the lender will take a look they just want to make sure it’s reasonable and everything is considered as a make sense situation you can be back to work for one month after or six months or a year off.

On an FHA loan FHA guidelines require six months back to work with pay stubs proof they’ve been back to work for six months before they’ll accept that income.

home improvement loans

On a VA loan it varies per lender some lenders will accept right back to work some might want six months or three months a lot of them will require just get past the probationary period on the job and you’re good to go.

Occupancy on a conventional loan you can buy for a rental, you can buy for a second home if maybe you want to live in the mountains or down by the beach on the weekends or obviously for an owner-occupied property.

For a FHA and VA loan it is owner occupied.

Only. Hopefully this blog post will help you need a decision making process which loan is right for you! We have a post on USDA Loans in Pennsylvania coming up next – stop by and see if you can’t Pre-Qualify!

Confused about USDA Loans in Norristown? USDA Loan Info & Friends Has the Answer:
usda loan calculator - Hi my name is David Young and I'm the Directorof Business Development at RCN Capital. I'm the person that runs ourCorrespondent Lending Program. RCN's Correspondent LendingProgram is a robust platform designed to partner withother private lenders in the private lending industry to help them scale their business. Really we've tried to focus on presenting a robust turnkey platform that helps people scale theirbusiness along four channels, capital, geography, human capital, and technology and infrastructure. RCN Capital can help inall four of those areas. RCN is very active in the hard money space with non-owner occupiedresidential real estate. That includes one tofours and multi-families. We have three product lines essentially based on term length. There's a 12 month term product, there's a two plus one, twoyear with a one year option, and there's a 30-yearfixed rental program. All of those are availableunder a white label umbrella through our correspondentlending platform. Correspondent lending programis available nationwide. Anyone can go to rcncapital. Com. Scroll down towards the bottom and you'll see a map of the United States showing that we're lendingin almost every state. RCN seeks to partner witha variety of entities out there operating inthe private lending space. Generally we connectwith other hard money, private money lenders thatare active in the same space and are looking to expandtheir business in scale, as I mentioned earlier, maybe a need to scalegeographically or with more capital or the other items thatI mentioned as well. We also can partner undercertain circumstances with other lenders thatare actively lending and it may not be directlyin this exact space right now but would like to expand theirbusiness into a new vertical by getting into theprivate money lending space and non-owner occupiedresidential properties. We can also consider opportunities that arise with thosetypes of organizations.

USDA Home Loans in PA and All Other Home Loans | USDA Loan Info

Hey prospective Homebuyers in Pennsylvania, USDA Loan Info with Mr. Schneider here, and today we're gonna go through the pros and cons of a USDA loan. Pro number one is that there is an option for no down payments. Con number one is that there's some geographical restrictions. Because this program is meant to support purchasing a home in rural areas, there are geographical restrictions that could cause quite a long commute if you are working in the city. Pro number two, there's some flexible credit guidelines. There's the 640 minimum, and if you do have a few dings, you're probably gonna still be okay. Con number two is that there's some income limits. You do have to meet income limits that are based off of the median income in the area you're living in. Pro number three is that the interest rates are typically lower than your standard conventional loan. Con number three is that you can't get out of the mortgage insurance. While it is a little bit lower with the USDA loan, it's still gonna add to your overall costs. Thanks so much for watching. For more on USDA loans, for the pros and cons, check out our blog at churchfinanzing.biz. Thanks so much for reading, we'll see you on the next blog post where we will be covering USDA Loan Income Limit Guidelines.

USDA Loans Pennsylvania | USDA Loan Info | PA

USDA Loan Info
Philadelphia, PA
(888) 464-8732