Have you heard of USDA loans?

If you’re a low-to-moderate-income homebuyer who doesn’t have a lot of money for a down payment and who needs mild credit requirements, you (or your lender) are probably focused on FHA loans. However, if you haven’t taken a look at USDA loans, you may be missing out on an incredible opportunity.

But if you haven’t taken a look at USDA loans, you may be missing out on an incredible opportunity.

In Real Estate the Rural Word is a Broader Term

In the world of real estate, the rural word is a broader term. You might be thinking, “But USDA loans are only for homes out in the sticks,” and that’s understandable. The loans were indeed designed to help buyers in rural areas. Yet, “rural” is a broader term than you may realize.

So, how can you learn more about it?

On the USDA website, you can enter an address in the search bar and check if it’s eligible, or you can drop a pin in a location to find out whether USDA financing is available in the area. Consider these interesting results: Frisco, TX, currently the fastest-growing city in the nation, is not eligible for a USDA loan, but Prosper, just to the north and being called “The next Frisco,” is eligible. The popular Valencia, CA, north of Los Angeles is not eligible, but areas of Santa Clarita, the city in which Valencia is located, are eligible. There’s no harm in looking, and you might find a real gem in an up-and-coming area.

What’s the number one impediment for renters making the leap to homeownership? It’s that annoying down payment.

Even though with an FHA loan that only requires a minimum of 3.5% down, the thought of setting aside several thousand dollars is daunting, and for some, it seems nearly impossible.
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For many prospective homebuyers, the down payment is the most daunting obstacle in the race to buy a home.

Even though for people with decent credit and a healthy paycheck, the size of a down payment can be a great homeownership killer.
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For 2020, the Federal Housing Finance Agency raised the maximum conforming loan limits, changing the dynamics of loans in general. Let’s talk about conforming loans vs. jumbo loans in the mortgage world.

Conforming Loans:

These are loans whose underlying requirements, terms, and conditions meet the funding criteria of Fannie Mae and Freddie Mac.

The 2020 Guidelines:

In October, the Federal Housing Finance Agency, or FHFA, collected data on the national median home value comparing numbers to October of 2019. As a result, it was an increase, and the conforming loan limit was increased by the same amount.

Going back to October 2019, the year-over-year median home value increased by 5.38%. Therefore, the conforming loan limit for a single-family home in 2020 increased to $510,400, up from $484,350. The loan limits on multi-unit properties increased to $653,550, $789,950, and $981,700 for a duplex, triplex, and fourplex, respectively.

Loan Differences:

Loan amounts at or under these limits qualify as conforming loans. They “conform” to guidelines set forth by Fannie Mae and Freddie Mac. Conforming loans make up the majority of residential loans funded. On the other hand, loan amounts that are above these limits are referred to as jumbo loans. It’s worth noting that with a conforming loan, lenders are able to sell the mortgage in the secondary market, replenishing their credit lines in order to make more loans. However, jumbo loans have no such robust secondary market. When a lender approves a jumbo loan, it assumes the risk should the loan ever go into default.

Rates based on Credit Score:

Naturally, this makes it more difficult to qualify for a jumbo loan. In general, the minimum credit score for most conforming loans ranges from 580 to 620. In contrast, jumbo minimums range from 720 to 740. While some jumbo loans can require a lower score, the rates and terms are much more stringent.

Get Ready to Show Buying Power:

Furthermore, down payment requirements for jumbo loans are also much higher. To clarify, a buyer can secure a conforming loan with a down payment of just 5% (or even 3% for special first-time programs) with the help of private mortgage insurance. However, jumbo loans have no such insurance policies available and require a minimum down payment of 20% of the sale price of the home. **Moreover, providing a down payment of 25% or more will make it easier to qualify.

Since a minimum credit score is required for most loan programs, the first thing a lender will do is check to see if your score measures up – this is known as a “credit inquiry.”

There are two primary types of inquiries, a hard and a soft inquiry. A hard inquiry will have a direct and almost immediate impact on credit scores whereas a soft inquiry will not. Continue reading →

Tired of looking out the window at your dull, dormant lawn? If you neglect your essential spring lawn care, you will punish for it for the rest of the year. A little prep now will give you a green lawn all summer long.

However, crawl spaces are often neglected, causing them to collect mildew, moisture, and heat, which lead to several problems with your home, including the presence of pests, poor air quality, and expensive energy consumption. Crawl spaces also can withhold moisture, which can make houses humid and lead to mold predicaments. A fitting crawl space should have a moisture barrier and any gravel or other covering to reduce moisture accumulation.

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Waterproofing contracting

Waterproofer contractors keep water out of the crawl space and away from the foundation. They primarily fix leaky cracks in basement walls and install drainage systems and sump pumps. Some waterproofing contractors also install dehumidifiers and encapsulate crawl spaces.

Crawlspace Urgent Care Sings

MOISTURE: Moisture can seep into the foundation of a house and cause damage over time. If that’s not bad enough, a dark and moist environment like a crawlspace can offer an excellent breeding ground for mold. Most of the air in your house goes through your crawlspace at some point. That air can carry mold spores into your home and reduce the air quality of the entire house.

Keep an eye out for moisture in your crawlspace, especially after it rains. You can detect it in the air if you have a good nose. You can also touch the ground and the walls looking for wet spots.

RODENTS, INSECTS, AND OTHER PESTS: Keep an eye out for critters and signs of their presence, such as animal feces, nests, and gaps in the crawlspace that could serve as the entrance and exit points. Insects and rodents should be eliminated quickly, as unchecked activity can quickly grow into an infestation. A pest control professional can help you determine the extent of the problem and recommend the best mitigation strategies.

Keep an eye out for moisture in your crawlspace, especially after it rains. You can detect it in the air if you have a good nose. You can also touch the ground and the walls looking for wet spots.

WOOD ROT: Rot can be a very costly problem. This form of fungus grows inside the wood, weakening it as it spreads. The good news is that there are lots of chemical products on the market that can kill and remove rot from wood. The bad news is that these methods don’t work when rot damage is too extensive. Detecting the early signs of wood rot can save you the expense of having to replace huge chunks of a house’s foundation.