I am looking at a listing that qualifies for USDA mortgage. Can someone advise the pros and cons?

Asked by Paula Fown, Waxahachie, TX Sat Apr 6, 2013

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Usda Mortgage…, , Jacksonville, FL
Tue Jul 21, 2015
The only "con" is a the USDA loan takes a few weeks longer to close due to the secondary approval process. Appraisal, home inspection, etc - all pretty much the same as other loans like FHA, etc.

USDA Mortgage Source - Florida USDA Loans, 7 days a week.
Ph: 904-302-6060
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sun Apr 7, 2013
Since 2006, have you ever heard of being able to purchase a home with a total Out of Pocket of less than $1,000 and 1st payment not due for over a month after closing since??

This is the type of loan scenario that I suggest as if a borrower is doing 100% financing, they may as well go all the way!

Contact me today.

0 votes
Holli Linck, , Winter Haven, FL
Sat Apr 6, 2013

The answers you have received so far are good ones. I would be happy to help you check to see if the property is USDA eligible and get you set up with a really good USDA lender. USDA does have income limits and a minimum credit score so we would need to make sure that you are ok in both of those areas. As Danny mentioned, USDA does take a little longer because USDA has to do a final review of the file before it is cleared to close. I have worked with many buyers using USDA loans, I purchased my own home with one so I am well-versed in the ins and outs. Please don't hesitate to call me. I look forward to hearing from you!

Holli Linck, Realtor
Trade Winds Realty
118 West Central Avenue
Winter Haven FL 33880

(863) 944-4193 cell
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sat Apr 6, 2013
Actually really Good advice from Daniel Barto below.

See programs below, then contact me to talk about how to minimize payments and reduce out of pocket costs.

1) 100% LTV- VA / (VA Jumbo @ lower ltv)
2) 100% LTV- USDA/12 mo. into Chapter 13 BK…OK Too
3) 99% LTV- FHA / (FHA to 580 score @ lower ltv)

4) 97% LTV- No monthly MI-No FHA 1.75% Fee
5) 95% LTV- CONDO
6) 90% LTV- No PMI -2nd Home
7) 90% LTV- JUMBO w/cc
8) 85% LTV- No PMI - Super Jumbo
9) 80% LTV- Invest./Rental
10) 75% LTV- Foreign Nationals

--------STATED INCOME ALT up to Super Jumbo-----------
11) 80% LTV- FIX n’ FLIP Invest. Prop.
12) 75% LTV- Foreign Nationals
13) 75% CLTV- Short Sale, BK, Foreclosure Forgiveness
14) 70% LTV- Soft and Hard Money
16) COMMERCIAL PROGRAMS-available nationwide

Go to: http://WWW.PRO-OPTION-COM or call 888-662-4404

Steve McRory
Pro Option Mortgage/ Florida

Prior Service U.S. Marine Corps
0 votes
Thank you Steve.
Flag Sat Apr 6, 2013
Daniel Barto, Agent, Naples, FL
Sat Apr 6, 2013
The property address is not listed with your question. That may help answer the question more specifically. However, the main advantage of using USDA is 0% down payment. So, if putting 0 down is very important to you, then USDA is the way to go. Other options that may be available to you, depending on several factors such as the property, your credit history, etc... A FHA loan requires as little as 3.5% down. Also, if the property is a HomePath foreclosure, it maybe be eligible for financing with 3% down.
The disadvantage of the programs I mentioned above are higher loan payment because less money down. Usually a bit higher rate. Homepath does not require mortgage insurance, but FHA does require mortgage insurance. FHA has more stringent requirements for qualification. USDA is a great program, but it could take a bit longer to close. Also, the program has been known to run out of money as the year progresses, so you want to make sure USDA is available at the time you purchase.
The main advantage is being able to role in the initial costs of purchasing into the loan amount and spending less money at closing. Otherwise, you can get a better rate and lower monthly payment with traditional financing with 20% or more down.

I hope that helps answer your question and best of luck to you,

Danny Barto
Galleon Real Estate
If you are interested to learn more or search all of the listing in the MLS by map, follow the link below to the GalleonProperties.com website. no sign-up required.
Web Reference:  http://GalleonProperties.com
0 votes
Thank you Danny for responding so quickly. You have definitely given me a lot of information. We currently live outside Dallas but want to return to our home of Winter Haven, FL. I will definitely check out the options you have presented.
Flag Sat Apr 6, 2013
Dan Tabit, Agent, Issaquah, WA
Sat Apr 6, 2013
Have you met with a lender and qualified for USDA? There are location and income limitations for this program. Your first step is to make sure you earn enough, but not too much to qualify. Then learn the areas where the program is available. Finally, a great local agent can set up a search and help you find the perfect home that meets the program guidelines as well as most of your wish list.
The pro's of USDA is no down payment. The con's are qualifying, liking the locations where the homes are and potentially waiting longer for a closing than with other loan products.
Make sure your lender not only has USDA available, but closes them on a frequent basis.
0 votes
Thank you Dan for such a prompt response. I will contact an agent in Florida so we can get the ball rolling!
Flag Sat Apr 6, 2013
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