USDA Scranton, 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 Scranton and finding out exactly which one’s the best one?

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

You know so many consumers are curious. Which type of Mortgage Lender in Scranton 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 Scranton 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 Scranton 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.

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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.

Conventional Loan | FHA Loan | VA Loan (Mortgage) FHA

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.

USDA Home Loan Explained - 5 Things You Need to Know About USDA Loans

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.

conventional 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 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.

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.

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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.

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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 Scranton? USDA Loan Info & Friends Has the Answer:
rd loan arkansas What's the process, when do you even start looking for a loan? Do you advise that people start before they even find a house or is this something where uh, once you kind of find the place you should go and get a long, kind of, pre-qualified? I always recommend that you start with the mortgage lender, before you start shopping and getting your heart set on something that may or may not be in your price range. I always usually recommend, if possible, stay with a local lender. That way there's no excuse of, "I didn't get the fax that you sent me. " You can actually go into the office. Just like Joel, he's right here in Greenwood. Bring the stack of papers to him and say, "You scan it, and you send it off. " But yeah, a mortgage lender is like the very first step. You can contact a realtor, I love it when people contact me first because I have preferred people that I've had experience with, working with lenders. Usually your realtor is going to have a list of lenders that they have worked transactions successfully with that they can provide you some guidance on. Yeah, and just to reiterate on that a little bit, there's nothing wrong with going and seeing Melissa and letting her know what you're looking for, so she can start kind of taking a look at the market and seeing what's going on, but you really want to come talk to a lender first because let's say you go and you find this house and it's $250,000 or $200,000 or whatever it may be and you love this house and it's everything you've ever wanted and you put in an offer and then you go talk to your lender afterward, there may be something that came up on your credit you weren't or your income didn't quite qualify you for that much. Then the next thing you know, all your hopes and dreams are gone, and you'll be upset. So get with your lender to make sure you're prepared before you go out and start you know, looking at houses. Well, even if you are going to be looking, maybe next year, or six months out, I would say go ahead and contact a lender because, like, Joel's great about looking at their credit and saying, "Hey, this is going to cause you some problems, these are some ways you can go ahead and, you know, step up that credit score by, you know, doing X, Y, and Z. " So it's always to go ahead, as early as you can and start working with your lender to get yourself ready. Yeah, it's never too to get in touch with me and let me know what you're looking for. So immediately? Mmhmm. Yep.

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What's the process, when do you even start looking for a loan? Do you advise that people start before they even find a house or is this something where uh, once you kind of find the place you should go and get a long, kind of, pre-qualified? I always recommend that you start with the mortgage lender, before you start shopping and getting your heart set on something that may or may not be in your price range. I always usually recommend, if possible, stay with a local lender. That way there's no excuse of, "I didn't get the fax that you sent me. " You can actually go into the office. Just like Joel, he's right here in Greenwood. Bring the stack of papers to him and say, "You scan it, and you send it off. " But yeah, a mortgage lender is like the very first step. You can contact a realtor, I love it when people contact me first because I have preferred people that I've had experience with, working with lenders. Usually your realtor is going to have a list of lenders that they have worked transactions successfully with that they can provide you some guidance on. Yeah, and just to reiterate on that a little bit, there's nothing wrong with going and seeing Melissa and letting her know what you're looking for, so she can start kind of taking a look at the market and seeing what's going on, but you really want to come talk to a lender first because let's say you go and you find this house and it's $250,000 or $200,000 or whatever it may be and you love this house and it's everything you've ever wanted and you put in an offer and then you go talk to your lender afterward, there may be something that came up on your credit you weren't or your income didn't quite qualify you for that much. Then the next thing you know, all your hopes and dreams are gone, and you'll be upset. So get with your lender to make sure you're prepared before you go out and start you know, looking at houses. Well, even if you are going to be looking, maybe next year, or six months out, I would say go ahead and contact a lender because, like, Joel's great about looking at their credit and saying, "Hey, this is going to cause you some problems, these are some ways you can go ahead and, you know, step up that credit score by, you know, doing X, Y, and Z. " So it's always to go ahead, as early as you can and start working with your lender to get yourself ready. Yeah, it's never too to get in touch with me and let me know what you're looking for. So immediately? Mmhmm. Yep.

USDA Loans Pennsylvania | USDA Loan Info | PA

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