Can You Pre-Qualify For USDA Loans in Pennsylvania?
What are the requirements for the USDA Loan program in Pennsylvania? So USDA has a few interesting requirements.
First of all, you’ll need to have at least a 580 credit score. Some mortgage lenders in Pennsylvania require a 620 credit score.
Your household income has to be under the county maximum. Like a lot of down payment assistance programs.
This is based on family size So 1 to 4 is one category and then 5 and above is a higher threshold for qualifying. ChurchFinancing.biz looked at the data and with the average family size in the USA in areas that qualify for UDA Loans, this is a standard spread.
What’s unique about this one is the home has to be within a designated area. So, Typically what that means is…
NOT within a metropolitan area. So within our area here aka USDA Loans in Pennsylvania territory. If you want a full list of USDA Loan Eligible Areas, Check out the Eligibility Map that the Government provides.
Our local cities around her don’t qualify. But, we only need to go 10 miles away to where there’s an open area where there’s Several homes that qualify.
USDA Loans in Pennsylvania and in any other state for that matter, stands for United States Department of Agriculture.
But it’s NOT a farm loan. Specifically, they don’t finance this program for farms. It has to be a Single Family home without a barn structure on the property.
USDA Loans : Does it also have some home price limitations?
The Threshold is a little bit lower than say an FHA loan for the loan limits. Ok, and how does this program differ from other Down payment programs?
So it’s different because it’s not really a down payment program but it allows financing up to a 100% of the purchase price.
And it’s interesting because you can actually use this program with 1 or 2 of the other programs.
If you need closing cost assistance But, what’s unique it’s a 100% Financing. So you don’t need a 2nd or a 3rd lien on the property.
Your interest rates are typically lower Than if you combine it with a down payment assistance programs.
And you don’t have to repay any down payment assistance It has a monthly factor It’s like mortgage insurance upfront It’s financed at a monthly component.
FHA vs USDA vs VA Loans in Pennsylvania
Much less than FHA. o if you can qualify for this program It’s better than FHA And As we mentioned, rates and payments Are typically lower on this program.
So USDA is really a great program. And on average How much does the home buyer have to come in with out-of-pocket?
So Again, we are financing the whole loan Purchase price up to 100% So the only thing remaining is then the closing costs .
Typically, plan on around 3% of the purchase price for funds to close. The question there then becomes, Well, Where does that come from?
Typically, we ask the seller to cover those costs.
And if we can get the seller to cover 3% then, the buyer may only need to come in with an earnest money deposit.
And they may even get most or all of that back. If the seller is covering all the fees. One unique feature about USDA Loans in PA Versus all other loans is that if the home appraises for more than the purchase price.- 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.
We can finance the closing costs Up to that appraised amount So, no other loan I know that we can actually finance the closing costs. on that type of loan.
What type of home buyer is this USDA program ideal for?
So certainly those that don’t have access to money for a down payment.
Anyone that wants to live that doesn’t have to live within a metropolitan area because, again, the house has to be in an area that is not in a high densely populated area in Pennsylvania.
It’s also suited well for people who have some credit issues and anybody that qualifies for this program would definitely be better served than going FHA so those type of people.
And besides the Area restrictions are their any other property restrictions?
So property restrictions are going to be similar to FHA They’ll do manufactured homes.
They’ll do homes with Casitas. So no real other restrictions. Just if it conforms to the FHA guides then it should qualify for USDA in Pennsylvania.
There’s a couple little quirky things That you don’t run into very often.
For example, you can’t actually have a barn on the property It definitely can’t be for agricultural purposes. It has to be for residential purposes check out our next blog section packed with facts on USDA Loans and Mortgage Lenders.
USDA Loan Income Limits in Pennsylvania:Hello USDA Loan Candidates! On this blog post here and today we're going to talk about USDA loans in Pennsylvania. So USDA loans are a government program meant to promote homeownership in rural areas. Typically the costs are significantly lower. You get into home ownership with this. Zero percent down, mortgage insurance is significantly less than your FHA loans and your interest rates too are typically lower than your traditional mortgage rates. They're available from any mortgage lender. So you don't have to go through a special entity or even the government to get approved. There are income limits on this type of loan. So you need to make sure you qualify because they are meant for the medium earners. And the loans are geographically based. So the home that you're purchasing must be in an eligible area but most suburban areas are. And if you're a home buyer, if you're thinking about buying a home I encourage you to check this one out first before you jump right into conventional because you may be surprised. For more on this topic, for more about USDA loans click the link in the description. Thanks so much for watching and we'll see you on the next video.
What is a USDA Home Loan?
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