USDA Financing

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USDA Washington State 2010 Income Levels Have Changed

Thursday, June 10th, 2010

The USDA has announced some changes to the 2010 Washington State Income Levels to qualify for 100% zero down USDA financing.

Take a look at table below to see what the income levels for where you live have been adjusted to. Income levels in Pierce County is now at $80,050 for a family up to 4 people. The income level is a very doable level for many of the homes located in Pierce County.

If you’re considering buying a home in Pierce County and you are not considering buying within the City Limits of Tacoma you might just find USDA financing a very valuable way to help your family get into a home this year.

When you are ready to talk about buying a home in Pierce County call (253) 219-1194 and we can setup a time to meet and discuss your options. As a Realtor® it is important that I keep up to date on both our local real estate market and on the various financing options. Just as no Realtor® is a perfect fit for every client; not every lender is a perfect fit. Working together we can find the best fit for you and your needs when it comes to buying a home in Pierce County using USDA financing or another type of financing.

County	1-4 person household	5-8 person household
Benton, Franklin	$74,750	$98,650
Kitsap, Thurston	$82,650	$109,100
Island	$89,550	$118,200
King, Snohomish	$92,600	$122,250
Clark, Skamania	$81,850	$108,050
Pierce	$80,050	$105,650
San Juan	$78,050	$103,050
All other Counties Adams, Asotin, Chelan, Clallam, Columbia, Cowlitz, Douglas, Ferry, Garfield, Grant, Grays Harbor, Jefferson, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend O’Reille, Skagit, Spokane, Stevens, Wahkiakum, Walla Walla, Whatcom, Whitman, and Yakima	$74,050	$97,750

Posted in Buying a Home, Lending, Puget Sound, USDA Financing | No Responses »

USDA Loans Show Me an Example of What We Can Buy

Thursday, May 20th, 2010

I was chatting with a friend the other day about USDA loans and she mentioned that she thought that USDA loans were for farm houses and things way out in the “sticks” I explained to her that her concept of USDA loans was a bit off.

Yes you have to be purchasing a home in a “rural area” but rural is a term that our government uses a bit differently. In Pierce County Washington much of the county is considered rural. That means that towns like Gig Harbor, Graham, Bonney Lake, Roy, McKenna, DuPont and many more are considered rural. You can find more information on Pierce County USDA eligibility by reading our other articles here on Classic Homes Northwest.

More on USDA Loans in Pierce County.

Update on congressional extending the funding for the 2010 fiscal year.

Here are two listings we have right now that are located within USDA boundaries. One is located on Anderson Island Offered at $259,000 with a great view of East Oro Bay.Membership in the Riviera Country Club is included in the annual homeowners dues as is your water.Learn more about Anderson Island here. The other is in Scenic Shores by Lake Lawrence. Anderson Island is a remote quiet island in the Puget Sound but it a great place to get away for a weekend etc. If you are a first time buyer and you are looking for an affordable home then you should take a look at Anderson Island. The home for sale at Lake Lawrence is offered at $209,000 and allows you to use the facilities at Lake Lawrence with your HOA dues. Close to Ft. Lewis, Olympia, Yelm, and a 30 minute drive to Tacoma. This 3 bedroom home could be yours for what most of us pay in rent each month. For more information on this house we have lots more here.

As you can see both of these homes are not farm houses and they are not on dirt roads. USDA loans can help you if you are looking at homes in the areas outside of the main core of Pierce County and the City of Tacoma.

When you’re ready to learn more about USDA loans and how they can help you take advantage of the current interest rates and property values we will be happy to introduce you to a lender who can walk you through the process.

If you would like a list of USDA eligible homes in Pierce County please fill out the contact form on the right side of the blog. We will send out a list of currently available homes to you. If you’re ready to talk so are we. Give us a call at 253-219-1194 today.

Posted in Buying a Home, Lending, Puget Sound, USDA Financing | 1 Response »

USDA Financing Fiscal Year 2010 Funds Running Out. Conditional Commitments Will be Issued

Wednesday, May 12th, 2010

As we have reported here in previous articles the USDA is running out of funds for the fiscal year 2010. The announcement today that the USDA will issue conditional commitments for Section 502 Single Family Housing Guaranteed Loans after the funds have been exhausted is potential good news for home buyers in Pierce County or anywhere that it is possible to use USDA financing. Your USDA approved lender can continue to process completed loan requests, receive conditional commitments, and close loans.

There is a change to the USDA financing the “Guarantee Fee” is increasing to 3.5% for purchase loan and it is increasing to 2.25 for refinance loans. The cost of getting a USDA loan has just increased. The borrower can still put zero down but will have the guarantee fee wrapped into the total loan. In a very simple example if you were to buy a 100,000$ home the initial loan amount would be 103,500$

While the cost of borrowing money using USDA financing has gone up the news that funds will continue to be available is good news for home buyers. When you are ready to begin looking for your home we hope you will give us a call so we can help you through the process of making a great decision. We work with multiple approved USDA lenders and we can help match you with a lender who will work hard for you to get the best possible financing. We then will work hard for you to find the best home and the best deal. We’re here when you’re ready.

Posted in Buying a Home, Lending, Puget Sound, USDA Financing | 3 Responses »

USDA Rural Home Loans Congress is Trying to Provide Additional Funding for 2010

Thursday, April 22nd, 2010

Are you hoping that you can use USDA Rural Guarantee Financing? It looks like Congress is working on making sure that the funding is going to be available without interruption. USDA Rural Loans can be a great way for home buyers to buy a home in a rural area. We have written articles on USDA financing here at Classic Homes Northwest. One of the reasons we talk about USDA loans here is that much of Pierce County is eligible for USDA financing. If you are interested in learning more about USDA financing you can read our other articles by following the links below.

http://classichomesnorthwest.com/2010-fiscal-year-usda-loan-program-expected-to-be-out-of-funds-by-end-of-april.htm

http://classichomesnorthwest.com/usda-guaranteed-rural-housing-loans-in-pierce-county.htm

You will need a lender who is experienced in USDA financing. We know a few so if you have questions we can point you in a direction to find the answers to your questions get in touch with us.

Press Release from House Financial Services Committee

Press Release

	For Immediate Release: April 22, 2010


	KANJORSKI BILL PRESERVING AFFORDABLE MORTGAGES IN AMERICA’S HEARTLAND PASSES IN COMMITTEE
Without Congressional Action, USDA 502 Rural Housing Program Will Run Out of Funding Within Days
	Washington, DC – Today, the House Financial Services Committee unanimously passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, introduced by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. This action clears the bill for consideration by the U.S. House of Representatives, which is expected to take up the bill as early as next week. The bill ensures the continued access of rural homebuyers to affordable mortgages through the U.S. Department of Agriculture’s (USDA) loan guarantee program. The financial crisis has spiked consumer interest in the program, tripling the number of loans annually made since 2006. Because demand continues to grow, the program will exhaust its federal funding within days. H.R. 5017 would, at no cost to the taxpayers, solve this problem by making the program self funded, enabling families living in rural communities to continue to access these much needed loan guarantees. “Since its creation in 1987, USDA’s affordable rural home loan guarantee program has helped hundreds of thousands of families to realize the American dream of homeownership, including many in Northeastern Pennsylvania,” said Chairman Kanjorski. “As a result of the unprecedented demand, the program is now unfortunately running out of money. At no cost to taxpayers, my bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.” “As a result of this program, I was able to purchase my first home which I have wanted all my life,” said Virgie Spruiell from Bushkill, Pennsylvania. “I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski’s efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did. It has had helped me tremendously.” Chairman Kanjorski’s legislation will correct the Section 502 Single Family Housing Guaranteed Loan Program funding shortfall by enabling the program to pay for itself, rather than relying on federal funding. In order to pay for the program, lenders will pay up to a 4 percent fee on new home mortgages. As a result of these changes, financing of the program will move from a combination of government funding and industry fees to a self-sustaining initiative. The USDA’s Rural Housing Service manages the Section 502 program, which provides a vital source of mortgage credit for people living in rural communities. Low- and moderate-income individuals and families in rural communities often have fewer mortgage credit options than those households in urban areas. The program aims to fill that void and lower the costs of homeownership by giving rural areas access to a home loan guarantee program. These guarantees decrease the exposure of home lenders to defaults so that they will underwrite more mortgages. In 2009, loans made under the program averaged $112,000. To qualify for the program, borrowers must have good credit and reliable incomes to sustain homeownership. ###

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Posted in Buying a Home, Lending, USDA Financing | 3 Responses »

2010 Fiscal Year USDA Loan Program Expected to be Out of Funds by End of April

Monday, March 15th, 2010

The USDA program funding for 502 Guaranteed loans is expecting to be out of money by the end of April. Once the funds are gone the agency will not be issuing conditional commitments “subject to receipt of appropriated funds” This is due to the uncertainty of when additional funding will be available.

This does not impact at this time the 502 Direct Loan Program.

What does this mean to you the potential home buyer looking in rural areas of Pierce County? The limited funds along with the expiration of the $8,000 tax credit will be motivating factors for some people to get off the fence and make an offer on the home that they feel will be a good fit for their needs. If you have been looking online and as of yet have not actively started looking today would be a great day to make a few calls to Realtors to see who would be a good fit to help you purchase a home in the next 30 days.

If you have not started talking to a lender to see if you are qualified for a USDA loan pick up the phone today and call a lender to see what you need to qualify for a USDA loan. You can start by calling any of the three lenders who are authors here on this blog. All three can do USDA loans.

Happy House Hunting!

Posted in Buying a Home, Lending, Ramblings, USDA Financing | No Responses »

USDA Guaranteed Rural Housing Loans in Pierce County

Tuesday, September 29th, 2009

USDA Guaranteed Rural Housing Loans

The current economic times are challenging to be certain. If you are a potential home buyer in Pierce County and you have not looked into the USDA Rural Home Loan Program you need to. This article is an update to a previous article that I wrote last year on USDA loans. I receive many inquires about the program. I hope that this article will provide more answers your questions.

In my opinion it is very important that a home buyer is working with both a real estate agent and a mortgage lender who are up to date with any lending program that will be utilized to buy a home. USDA Rural Loans are an excellent option for you the buyer. Make sure who you work with is familiar with the program.

USDA Loans are available in many areas of Pierce County. This link will take you directly to the USDA site for Pierce County property eligibility. Take a look at the map. Most of Pierce County is potentially eligible for a USDA Rural Loan. You can enter an address and see if it is considered eligible for USDA financing.

Buying a rural home does not mean you have to be living on a farm down a dirt road. Yes, you cannot live in urban areas like Tacoma or Seattle. Yet, you can live outside of the city limits and be in a rural development. The map below (click to see larger image) shows the areas of Pierce County that do not qualify for USDA loans. Notice that the city of Tacoma is the majority of the map. Most of south Pierce County qualifies. Bonney Lake, parts of South Hill of Puyallup, Graham, much of Gig Harbor, and DuPont for example are all potential areas to buy a home using USDA financing.

There are two types of USDA RURAL Development Home Loans.

Section 502 Direct loans
- Eligible low income applicants who cannot obtain credit elsewhere
- Adjusted household income at or below 80% of median income for county
- A satisfactory credit history
- Stable source of income
- U.S. Citizen
- Guaranteed Rural Housing Loans
  - No Down Payment Loan
  - 2% fee can be financed up t0 102% Loan to value
  - No mortgage insurance
  - Income <115% of county median
  - A satisfactory credit history
  - U.S. Citizen

The above bullet points are just some of the features of a USDA Rural Development Loan.

An important point to consider is that 100% financing is possible using the USDA programs. If you have satisfactory credit, stable employment, income within the very reasonable limits but limited cash, then a USDA loan might be the vehicle that will allow you to buy a home. You can also use USDA financing to purchase a building site and build a new home. New manufactured housing also can qualify.

You can find out more about the USDA Programs by requesting information here. This will send you an email with much more information.

If you would like to receive our email updates of USDA eligible homes please click here.

If you have any questions you can call us directly at (253) 353-2194 we will be happy to answer any questions you have regarding using USDA loans to purchase your new home.

Let us help you open the door to your new home.

Best wishes,

Scott Cowan