📌 In this video I break down the ins and outs of the $0 down USDA mortgage loan right here in San Diego.
📝 This mortgage loan is great for anyone that wants to live on the outskirts of San Diego (think Fallbrook, Pauma Valley, Ramona, Julian, Palomar Mountain, Campo, etc), doesn't have a down payment, extremely low interest rates (think low to mid 2's), and lower monthly mortgage insurance than an FHA or conventional loan.
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🕵️ Without further ado - let's jump into the USDA home loan details.
✔️ It is *not* just for first time home buyers - it is for everyone. Whether you have never owned before - or have, that's fine.
✔️ This is for a home, townhome, or condo. I do not personally deal with vacant land, manufactured homes, nor mobile homes and have no idea if you can or can't with them.
✔️ This is *not* for a working farm - this is for a home, townhome, or condo that you will be living in.
✔️ It is address specific - as mentioned, think of the outskirts of San Diego, think countryside, think places like: Fallbrook, Pauma Valley, Ramona, Julian, Palomar Mountain, Campo, etc. Here is the direct link where you can put in the address of any property you might have an interest in and see if the address works. If it does, great - if not, it doesn't work going USDA.
✔️ There is an income limit. You can use this direct link to see if your income falls within the guidelines of being okay. If your income is that amount or lower, depending on your family size - you are golden. If not, you cannot go USDA.
However, to give some examples I checked for a family of 2 people, 3 people, and 4 people, and the max income allowed for each of these examples is: $136,500 per year or $11,375 per month.
So, if you make this amount or less for your entire household - you are great.
✔️ Debt to income ratios (DTI) on this is a bit different. Generally speaking we use 29%/41% for the front end and back end ratios. But, I have seen as high as 34%/46% ratios.
Simplified, if you make $10,000 per month gross (before taxes) that means we can go *as high as* $3400 per month for a total housing payment and as high as $4600 per month in total debts (what's on your credit report + future housing payment / average gross income over 12 months).
✔️ Current credit score needed is a 620 middle fico score and/or the lowest middle fico score if you are applying with someone else. Generally speaking the higher your credit score, the lower your rates, and the more likely to get a higher DTI allowed.
✔️ There is no maximum loan amount. If you qualify for the loan, it's within all ratios, we have no max loan amount.
✔️ There is a low 1% upfront guarantee fee and an annual guarantee fee of 0.35% (compare that to an FHA loan with a 1.75% UFMIP and 0.80% monthly - the USDA is much lower.
✔️ If you have had a chapter 7 bankruptcy you can get a USDA loan 3 years from the discharge date.
✔️ If you have had a foreclosure you can get a USDA loan 3 years of the foreclosure date - that is the actual date you had to be out of the house and lost possession.
👉 Here's your steps to begin:
✔️ Fill out my online application in 10 minutes or less at www.scottsloanapp.com
✔️ Once complete, log back in, finish application, and upload your needed documents
✔️ I will be alerted, check everything over, run your credit, review, and contact you about best scenario.
👉 Here's more USDA videos below:
📝 Feel free to leave any comments or questions below.
☎️ Or, shoot me a text or call to (760) 297-4539
Your USDA Insider,