Do You Pre-Qualify for USDA Loans in Pennsylvania?
Welcome to a discussion on USDA Loans Pennsylvania brought to you by churchfinancing.biz! As you are probably aware, right now you’re considered almost Pre-Qualified Candidates!
On our page here and we’re going to provide you with everything you need to know 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 USDA Loans.
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 USDA 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.
Finding USDA Eligible Areas in PA
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 here: USDA Loans.
So you’re a prospective Homebuyers in Pennsylvania? Well, USDA Loan Info in conjunction with churchfinancing.biz brought in one of our Qualified USDA Loan Agents.
Now, what are 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 reading our USDA Loan Pro’s and Con’s information packet. 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 in our blog posts section where we will be covering USDA Loan Income Limit Guidelines.
Pennsylvania Areas that Qualify for a USDA Loan
You just may be surprised at how many Pennsylvania areas qualify for a USDA Home Loan. Designed to stimulate growth in small or rural communities, areas that are eligible for a USDA Loan include:
Communities located outside of city limits
Communities with less than 20,000 people
Never assume that your area does not qualify for a USDA Loan. The experts here at churchfinancing.biz are here to help, fill out the Pre-Qualification Application, or call one of our certified USDA loan agents at (888) 464-8732.Mortgage Matters! - Let's talk about loans. Hi, my name is Danielle Scottwith Keller Williams Realty. I'm here today with JimmyJoseph of First Lenders. Of course, you know, dealingwith first-time home buyers, even people who've been inthe buying process before, everyone wants to know what do they need to know about loans? One question I get a lot is "What's the differencebetween FHA and Conventional, also VA loans?" So, if you could just talka little bit about them. - Those are threedifferent types of loans. One, VA loans for activeslash retired veterans. That's a loan that's usedfor them through a program which is administered by the government. Then you have FHA, which is another loan program administered by the government, where it gives you flexibility in terms of your down payment, below-average credit scores, and higher debt-to-income ratios to purchase the home. It gives you flexibility inyour debt-to-income ratio as far as buying power. And Conventional, that's what we call our traditional lending, where you're allowed toput 3% to 20% down payment, and that has privatemortgage insurance, PMI. - So, how about first-time home buyers and the pre-approval process? What tips would you give for them? - For first-time home buyersit's important to use a free tool, which is Credit Karma. I think it's absolutely greatbecause it gives you an idea where you're at with your risk. However, when I'm givingout a pre-approval I collect four factors: cash, income, property, andrisk which is your credit score. - Do you have anythoughts on closing costs? People usually are veryconcerned with that. - Yeah, they should be, because usually, sometimes, they don't understand whatcomes into the closing costs. What's in the closing costs is: settlement fees, your escrow,and origination costs. It's important that you look at that and have your lender talkto you and talk through, line by line, of what's going on, what's costing you the most. Because in the end, this is what your loan isgoing to be for the future as you make your monthly payments. - So, Jimmy, what do you thinkabout new construction homes? I get that question a lot, people looking for new construction. What should people be concerned about? - They should be concernedabout two things: the taxes and making sure your lender knows what'sgoing to happen as your escrow changes. With new construction, sometimes the lenderdoes not have access to what's going on with the taxes. So it's important that youcommunicate with the tax assessor to understand when the propertyis going to be re-assessed so that when that amount is adjusted that your lender knows, so moving forward you canmake your monthly payments. What happens in come cases, lenders are not communicatingwith the tax assessors and your escrow is short and sometimes clients have a concern, like "I didn't know whathappened, what's going on?". Nevertheless, it's important that the lender, and yourself, andthe tax assessor get involved to make sure you're taxed accordingly and correctly for the new property. - Thank you so much, are there any finalthoughts you want to give to people who are, you know,just starting the process? - Yes, make sure when you're working, when you're looking for a home, or trying to figure out what you want, how you want to go about it; please speak to a realtor. They have experience, theyknow what they're doing-- - (whispers) That's me. - And they will make sure thatthey coordinate your needs to the fullest. - Okay great, thank you so much! Again, I'm Danielle Scottwith Keller Williams Realty, I'm here with JimmyJoseph from First Lenders. Thank you, bye! - Bye.