USDA 100% Financing

Some details and really great information about USDA home loans.

Hey what’s going on guys so today i just wanted to kind of talk to you about a alone a certain loan called a usda loan sounds like a steak but it’s not a steak it’s alone and the reason why i wanted to talk to you about that is because being a lender in ocean county i am asked quite often about this usda loan so basically what it is it’s a loan and it’s a really

Fantastic loan it’s a loan that allows for zero money down $0 down right and so i’ve done a bunch of them over the years and there’s some specific things that you should watch out for though when when interested in qualifying for an a usda loan first thing is the credit score usda there guidelines say that they’re looking for applicants with at least a 640 or

Above credit score so if your credit score is not at 640 yet we can talk about how to get it there right if it’s above 6 porting already that’s great so you’re got one one foot in the door source b second thing is they’re really tight on i with this thing called ratios now i did a video about ratios not too long ago so you can check that out but basically what

Usda says is that they don’t want your housing payment to be more than let’s say twenty nine percent of your monthly income and they don’t want your total debt to be more than 41 percent of your income now there’s some exceptions to that rule but in general that’s what you should go about okay so how do they pay me not more than 29 percent of your income and total

Debt income not to exceed let’s say 41 percent of your total monthly income all right another thing to watch out for with usda loans a state that they have to be the house has to be in a usda eligible area so what that means is that a usda says what areas they are there their homes are eligible and what i found was that most of the time those homes are located

In more rural rural talk words for me to say rural areas and and so kind of like less populated areas so for example rick new jersey is in ocean county and brick is a densely populated area so that’s not going to work talking forever same thing although there’s little pockets at toms river that would work but you know counts like barnegat manahawkin jackson howell

Long beach island actually they’re all eligible areas for usda loans and the other thing to think about with usda loans is that their income restricted so for a one to four family household in ocean county new jersey the income limit is 108 thousand five hundred and fifty dollars so if you have a husband and a wife and two children that household income needs to

Be 108 thousand by 50 or less if you are just by yourself your income needs to be 108 thousand 550 or less so those are some of the things that i’ve learned about usda over the years they are really great loans they do allow us for such concessions so in my career i have actually closed the usda loans with the buyer bringing like literally no money to closing with

Them so if you like to have a conversation or know about more excuse me know more about how we can work together or more about how i can help you specifically please let me know my phone number should be around this video somewhere you’re more than welcome to reach out to me anytime you’d like thank you so much have a great day and i’ll see you

Transcribed from video
USDA 100% Financing By Len Herbert