Bob Hansen
Loan Officer
Prospect Mortgage
Phone: (484) 784-2157
bob.hansen@ProspectMTG.com
USDA Loosens Income Limits on No-PMI Loans
Zero-down
programs are few and far between these days, but one stalwart just got an
upgrade!
USDA Guaranteed Rural Development loans offer 100% financing with no monthly
Private Mortgage Insurance. Seriously, did you hear me? I said NO monthly PMI.
While there are some geographic limitations on this program, if you have
listings that would qualify, you need to take notice.
Although income restrictions for this program are determined based on the
number of people living in a household, these limits were loosened beginning
April 20. As a result, more of your clients may now qualify and be able to
afford higher value homes under this program.
Previously, the income limitations were based on the exact number of people
living in the home. For example, the limit for two people was different from
the limit for one person; the limit for three people was different from the
limit for two people, etc.
As of April 20, however, the household income limitations are grouped into two
categories: 1-4 Person Households and 5-8 Person Households. This is great
news!
It means that higher income earners with fewer people in the household may be
more likely to qualify.
In non high-cost counties, where 1-4 people reside in a home, the income limit
will now be $70,750. In homes where 5-8 people reside, the limit is $93,400.
While these figures serve as a guide, there are certain formulas to arrive at
these numbers where people can earn more and still qualify.
Now just because you see the word "rural" in the program name, it
doesn't mean we're talking farmland here. No, your clients don't have to raise
cattle or chickens to qualify. Rural generally is defined as areas that are not
densely populated and have fewer neighborhoods – but you might be surprised at
how many neighborhoods qualify. To check if you have a listing that would
qualify, email me or click the link below.
Is
my property eligible for USDA Guaranteed Rural Housing financing?
I'm very excited about what this can represent to your business. More buyers
will have the ability to buy a home without a down payment. Also, when it comes
to USDA Rural Housing loans, the seller can pay closing costs up to 6%. When
you combine these benefits with the available tax credit of up to $8,000 for
first time home buyers, helping more people get into the home of their dreams
is suddenly a lot easier.
To learn more about how this program can help you sell more homes, and how
people earning more than the limits listed above can qualify, give us a call.
This is a great opportunity to increase your business and your share of the
market.
Sincerely,
Bob Hansen
Prospect Mortgage
(484) 784-2157
bob.hansen@ProspectMTG.com