Can some of the lenders out there give me an update on the requirements for a USDA loan? I have verified that the property area qualifies.

Asked by Stephanie Weiss, Gilbert, AZ Tue Dec 13, 2011

Properties are in Apache Junction (pinal county) I'm not sure about income for 2 single individuals.

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8
Kayne Thrift, , Phoenix, AZ
Tue Dec 13, 2011
BEST ANSWER
USDA Borrower Eligibility:
- Applicants must have a dependable and adequate income
-Must be a U.S citizen, qualified alien, or legally admitted for permanent residence by the United States
-Adjusted annual income may not exceed the income limit that has been established for the area in which the home is located. In Arizona the income for a 1-4 person family is $74,050 (all areas in AZ except Phoenix MSA) to $76,600 (Phoenix MSA) the last time I checked about 6 months ago.
-All adults in the household who have an income must be included in the total gross income of the household. Certain adjustments to gross income, such as child care costs, may be taken into account in order to meet the income qualification.
-Applicant must have a good credit history with a credit score of 620 or higher
-The mortgage payment plus tax and insurance must not exceed 29 percent of the gross monthly income.
-Total debts must be lower than 41 percent of the gross monthly income

If you need additional information please contact me at kayne@counselmortgage.com or (602) 482-8208.
Web Reference:  http://www.kayneaz.com
1 vote
Kayne Thrift, , Phoenix, AZ
Wed Dec 14, 2011
Just want to update the comment regarding pools and USDA loans. For years properties that included an in-ground swimming pool were deemed ineligible for a USDA Rural Development Loan. This guideline has recently been loosened to include properties with an in-ground pool provided that the USDA Loan isn't used to finance the portion of the property's value attributed to the pool.

For properties that include an in-ground pool the appraiser must determine the value of the property with and without a pool. The appraiser must justify their determinations of value. This may include the use of additional comparable homes of similar size but without a pool. Essentially the appraiser is providing the value of the home as-is with the pool and a value of the home based on the assumption that it didn't have a swimming pool.

If the purchase price of the house exceeds the value of the property without the swimming pool the difference must be paid for by the buyer.
Web Reference:  http://www.kayneaz.com
1 vote
Klambe, , Arizona
Wed Dec 14, 2011
Hi Stephanie
Most of the answers addressed your question. One added bit of information is don't forget that USDA will not finance a pool.
Kevin Lambe
480.344.1992
klambe@amerifirst.us
1 vote
Thadeus Brew…, , Scottsdale, AZ
Wed Dec 14, 2011
All good annswers so far.
I want to add that Seller Concessions can be up to 3%.
1 vote
, ,
Wed Dec 14, 2011
All great answers but I wanted to add in that as of October 1st you now have annual fee - or mortgage insurance on the USDA loan - This fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan.
1 vote
Dan Tabit, Agent, Issaquah, WA
Tue Dec 13, 2011
Sephanie,
I've attached a link to the USDA site. You can enter your client's information and make certain they fit the tight income qualifications as well as the location.
1 vote
, ,
Tue Dec 13, 2011
For a household of less than 5 persons, max income is $72k
1 vote
Stephanie We…, Agent, Gilbert, AZ
Wed Dec 14, 2011
Thanks everyone. I appreciate your fast responses!
0 votes
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