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OK, how about this loan?????


demoncasterouter
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In talking to the other guys privately, I'm gonna put this one on here now, so other people can learn......

FHA will not use bank statements as proof of income for the self-employed (I've had 2 mortgage people tell me that now). They want tax returns, and that really hurts you after you take all of your tax breaks. It brings your income way down. So this hurt us since my wife owns a business.

So, my new mortgage lady is going to try to get me into a USDA loan. Anyone heard of this? Sounds like some kinda beef thing to me (hahaha). We're going to try to just use me on there instead of both of us. I told her DTI would be off, but she said this is a loan that you can have it at 53% possibly...? Whaddaya think, oh masters of mortgage???

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So, my new mortgage lady is going to try to get me into a USDA loan. Anyone heard of this? Sounds like some kinda beef thing to me (hahaha). We're going to try to just use me on there instead of both of us. I told her DTI would be off, but she said this is a loan that you can have it at 53% possibly...? Whaddaya think, oh masters of mortgage???

USDA loans are an attractive alternative to FHA loans. The biggest advantage is there is no monthly PMI insurance, although there is still an Upfront Mortgage Insurance Premium.

The debt ratios on a USDA loan are the same as FHA (29/41), but the ways that they calculate income are very different indeed, and I would be here all day illustrating the differences.

USDA loans have geographic restrictions, they also have income restrictions based on geographic median income. If these qualifications can be met, then I would send the loan to USDA before FHA.

These loans are also underwritten the old fashion way, meaning if your USDA office says it is O.K. then it is O.K. It is blessed and the lender/servicer will accept it.

On the servicing side there are many more advantages in the areas regarding servicing, default which are designed to protect USDA and most importantly, the consumer.

If the criteria meets their standards, seize the opportunity.

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