Showing posts with label Arizona USDA Home Loan Program. Show all posts

Wednesday, May 16, 2018

Getting into Fix & Flips? Read This Appraiser’s Advice First

When people hear about Level 4 Funding and the work we do, they often wonder exactly how people put hard money loans to use and create real value with them. Oftentimes, those we help work in the “fix-and-flip” business, rehabbing houses. Of course, the next flurry of questions usually surrounds who does that and how they make it work. We’ve been lucky enough to get a few professional home rehabbers to open up a bit about their work and are highlighting their stories. Jason Maze of Maze Enterprise and Amazing Appraisals was kind enough to give us some insights.

Jason Began as an Appraiser

Working in real estate appraisals, Jason routinely helps home buyers and sellers, as well as other parties such as lawyers and accountants, determine the value of a home. While this is often done in advance of a sale, appraisals are routinely performed anytime knowing the value of a property is beneficial, such as during a divorce or while handling estate planning. Over the years, he really got to know the numbers and specific areas. When the market crashed in 2008, he noticed an interesting trend. Canadians were heading into the area and buying en masse. “We can do that,” he decided. With his experience in value and his wife Jennifer’s lifelong affinity for design, the two ventured into the fix-and-flip business.

He Offers Some Tips for Those Getting into Home Rehabs

We asked Jason what advice he’d give someone who was considering getting into the business. “Go for it,” he says. “Make sure you have crunched your numbers. Buy low, sell low.” Although Jason may have the upper hand in valuation because he’s been in the field for decades and now does about ten flips per year on top of it, he says anyone can get a better idea of the numbers by hiring an appraiser before they purchase a property or prior to selling one.

There are Highs and Lows in the Fix-and-Flip Business

So far, Jason says his and Jennifer’s most rewarding project has been a historic home. With Jennifer’s designs and Jason’s fiscal sense, the outcome was great. However, the icing on the cake was when HGTV contacted the couple and asked about airing it on a show. This particular property, aside from celebrity status, was a bit of a rarity for the duo, as they typically aim for “newer” homes, or those built in the 1970s through now. Jason says they “learned their lesson” about dealing with older homes the hard way by purchasing one sight unseen. When they finally got their hands on it, they realized it was built with mud and straw, then covered in plaster, as opposed to modern building materials. This, he adds, isn’t uncommon for the period. Many homes throughout the southwestern US, particularly in the Phoenix area, were built this way because it’s what the earliest residents had on hand and helped make the desert heat more bearable. Still, it was an unexpected surprise they had to overcome and added a few extra challenges to the rehab.

Jason and Jennifer Have Big Plans

Despite the occasional blip, the fix-and-flip business has been good to the Maze family. The pair does about two homes at a time, continuously adding to their impressive portfolio. This still allows plenty of time for Jason to grow his appraisal business. Jennifer, on the other hand, has been balancing managing the design of their rehab properties with a nursing career, which she may soon leave behind in favor of branching out on her own offering design services to others. Of course, the family is still allowing plenty of time for fun and new adventures together as well.

Chat with Jason About Appraisals or Get Info on a Fix & Flip Loan

If you’d like to chat with Jason about his appraisal services, go to Amazing-Appraisals.com.

You can also visit Level4Funding.com to learn more about loans for your next fix-and-flip project and even begin the application process right on the site. We’ll be sharing more stories from home rehabbers like Jason too, so pop back in soon for the next installment.

Saturday, May 5, 2018

Why it’s Important to Find a Flexible Lender When Commercial Real Estate Loan Rates are High

When you need a loan, finding a flexible lender that is able to negotiate for your best interest, even when commercial real estate loan rates are up, can help you get the best value for your money. Level 4 Funding shares why this is important.

Obtaining a loan can be tricky business. In fact, over half of loans that are submitted are typically denied. While this can seem very daunting for someone who is trying to obtain a loan, it’s crucial to remember that there are many options out there when seeking a loan. Conventional loans are very difficult to receive approval for, but there is hope in knowing that non-traditional lenders are there to say “yes” when banks have already said “no.” Even if you have less-than-desirable credit, you are a first time investment purchaser or current times mean high commercial real estate loan rates, you can still get approved.

Traditional banks are very rigid when it comes to approving loans. There is a lot of bureaucracy and red tape that must be dealt with conventional lenders — and they are rarely very flexible. That’s why hard money lenders are a good option. They can be a lot more flexible because rather than focusing on credit score, your business plan or other criteria, they are more interested in the assets of your business or the property you are purchasing which can serve as collateral. You will need to ensure them you have the collateral to put up and perhaps provide a brief outline for the business or property you plan to purchase.

While these lenders deal in short-term loans which typically have high commercial real estate loan rates, if you find a reputable lender who truly believes in your business plan or is flexible enough to negotiate better rates for your loan. However, because short-term loans typically have a repayment schedule that ranges between three months and three years, naturally the commercial real estate loan rates are going to be higher than a traditional long-term loan that allows for many years for repayment. Sometimes the commercial real estate loan rates associated with a short-term loan are simply higher because the lender is making a high risk by approving a loan that would typically (or already has been) declined by a traditional lender like a bank.

There is one more thing your lender might want you to provide.

Many short-term lenders will want you to provide you “exit strategy” from the loan. For example, would you sell the property? Refinance with a more conventional lender once the business starts earning a profit? It’s important to prove how you will build cash flow so you can ensure the lender you’ll be able to make the repayments on schedule.

It’s also important to find a lender you can trust.

While getting the best rates are crucial, it’s also important to work with a lender that is reputable and you truly believe that they have your best interest in mind when creating the loan agreement. Level 4 Funding can help you get the loan you need (sometimes in as little as 24 hours) with people you can trust.

Wednesday, March 21, 2018

Tips for Selecting Commercial Lenders

Selecting commercial lenders to work with is a critical step a successful real estate transaction. Thinking of potential lenders as business partners or service providers is the first step in a successful selection.

In many instances, borrowers tend to look at commercial lenders as a higher power who controls their destiny when they are seeking a loan. And though the lenders is a critical factor, they should never be viewed as anything but a business partner, ally or service provider. They have a product which you want and need, money, but it is just that, a product. And as with any business partner or supplier, you will want to do your research and find the best solution to fit your needs. In this case service, the ability to cultivate a long term relationship and financial details of the loan will all have an impact on your selection.

The money is the key to this relationship, so your first questions for a lender need to be regarding the terms which they offer. Loan to value (LTV) is the ratio used to compare the amount of the mortgage to the market price of the property. Lenders who offer a highest LTV should be favored over other lenders. The high LTV provides you with greater purchasing power and more options for your purchase. Interest rates are another key term to consider. This is basically how much commercial lenders want to make for the service which they are providing to you. The interest payments can be the majority of the monthly payment which can have a huge impact on your monthly cash flow. Be certain to find a good balance of loan to value and interest to meet both your need for buying power and monthly cash flow. The final fee to factor in is points that you will pay as a lump sum or throughout the loan.

Having a good working relationship with your lender is also crucial. You need to be able to speak openly and ask any questions that you might have. One important question to ask is about any additional fees. Some lenders will add fees such as documentation fees, legal fees or administrative fees. Be certain that you plainly ask about any “additional” fees and factor them into the total cost of the loan.

Time is Money

Timing can be everything when purchasing commercial property. Asking a lender to provide you with realistic timelines for funding will dictate how quickly you can complete any purchase. As a work around, you might want to see if the lenders offer pre-approval. If there is no option for pre-approval then having an accurate time frame for processing documentation and a guaranteed access to funding date is important. Better rates but a slow timeline can kill a great deal.

Look For a Long Term Finance Partner

Selecting the best commercial lenders to work with can be a process which requires a good deal of time and effort. But the work that you invest in creating a strong and lasting relationship will pay off each time you complete another loan with your lending partner. That long term relationship will provide you with a great long term return on your investment.

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tuesday, March 20, 2018

Process for Obtaining Commercial Loans

There is really no shortcut when you are seeking commercial loans. But following a tried and true process can help to expedite the response to your application.

Most borrowers fail to understand that a great deal of the success or failure of their commercial loan application rests on their amount of effort in preparation. There is a huge amount of research and due diligence that a borrower must invest in the process in order to be successful when applying for commercial loans. Understanding the loan application process, the desires of specific lenders and their loan approval criteria are all very important and should be researched long before you begin to search for a commercial property to purchase.

Many borrowers are in awe of commercial lenders and fail to see them as a business partner or vendor. They get too caught up in the “bank” aspect and feel as if they are being judged. The lender is making a judgement but only from the perspective that they want to verify that you can afford the loan. They are just making smart business decisions. In that vein, you should also be making smart decisions about who you are interested in borrowing from. There are many options for commercial loans which you should explore including large national banks, medium sized regional banks, a small local bank, a private lender or a mortgage company just to name a few. If you are not familiar with any major lenders or to gain information about your options, begin with a meeting at your current bank to learn about their commercial loan products.

Each lender is going to have a slightly different set of criteria for approving a loan. Learning these requirements can help you to determine which lenders you will actually apply to. Set up a few appointments to speak to loan officers to learn about the lenders and what they have to offer you. Be prepared to discuss your business, the reason you are requesting a loan and how you plan to meet the financial responsibility of repaying the loan. These conversations can glean some very helpful free advice for you from seasoned lending professionals.

Select Lenders Who Best Meet Your Needs

Not all lenders are going to be a great fit for you or even a fit at all. If you are looking for a small loan then a national bank might not be interested in your application. Likewise, if you are seeking a very large loan, then a small local bank might not be your best choice. Try to determine which lenders specialize in the type of commercial loans that you are seeking and then apply only to those lenders. There are costs involved in commercial loan applications as well as a commitment of time. Don’t waste either by applying to a lender who will not be interested in your business.

Make a Great First Impression

Other than a brief introductory meeting, your loan application will be your first contact with many lenders. This is your only opportunity to create a positive and professional first impression. Invest all of the time that you need to research your options and the criteria that each lender uses to evaluate loan applications. Only then should you begin to compile your documentation and complete the loan application. This dedication to completing a high quality loan application and documentation packet will pay great dividends when you learn that you have multiple loan offers at very competitive rates.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, July 28, 2014

Why Apply for an Arizona USDA Home Loan?

People are buzzing about USDA Home loans…but do you really know what they are all about? Why should YOU apply for an Arizona USDA Home Loan? These loans can benefit you in many ways, but you need to know the ins and outs before you get started.

It seems that there is an endless amount of ways to finance a home in 2014. There’s FHA loans, conventional loans, loans that require money down or no money down, loans for renovations, the list goes on and on. While you can find a plethora of information online about home loans, let me fill you in on an Arizona USDA Home Loan and why you should consider applying for one.

Arizona USDA Home Loan: What is it?

You’ll need to know the answer to this first before you decide whether or not you’d like to apply for this loan. The first thing you need to know is that this loan in particular has a lot of upsides with very little catches. That’s the truth! Let’s explore the history first so you’ll be able to better understand.

The USDA home loan was created by the US Department of Agriculture with farmers in mind. However, it has benefited much more than that specific group of people. The USDA wanted people who lived in rural areas and low income households to be able to achieve that American dream we are all looking for---home ownership. Thus, there’s nothing secretive about this loan, there’s nothing you need to worry about, and no reason to be skeptical.

The Arizona USDA Home Loan offers something that the majority of other loans do not—that is 100% financing. That’s right. No money down. So even if you have been scrimping and saving for a down payment, you can keep that money in the bank or put it toward something else on your home because the USDA loan will finance it all. What’s great about this loan too is that often times the seller pays closing costs. When the seller doesn't pay closing costs, the buyer can have those expenses rolled into the loan so you can literally move into a home without a single penny out of pocket. The first expense you’ll have to put toward your new home is simply your monthly mortgage payment.

Another upside to the Arizona USDA Home Loan is that the interest rates are remarkably low. The days of 10-20% interest rates are long gone and most people looking into this loan are able to finance a home for less than 7% interest. The USDA loan offers an entire percentage rate lower than other loans.

Perhaps one downside to the USDA loan in Arizona is that the areas where you are allowed to buy a home with this type of financing are very strictly defined. Since it is the US Department of Agriculture who developed this loan, it is only logical that this loan is offered specifically in rural areas. The USDA has a map on their website that describes which areas in Arizona are eligible. Don’t be distraught though, you will probably be very surprised to find that a lot of the areas you thought wouldn't qualify, actually do!

The only other downside to this loan is that there is a cap on your income. Essentially, you cannot make more than about 115% of the median income for Arizona. For Arizona in particular, that averages out to about $75,000 per year. But hey, if you’re making more than that, maybe you’re better off anyway!

It’s pretty easy to qualify for the USDA home loan Arizona. You’ll have to have your mortgage broker or real estate agent check your debt to income ratio and make sure it is low. You don’t want to be paying a lot out in credit card payments and other debts when you’re trying to make a purchase as large as a home. When you factor the payments for the home you’re looking to buy, you will only be able to qualify for the loan if it does NOT put your debt to income ratio above 30%. This means that your monthly mortgage payment cannot equal out to more than 1/3 of your gross monthly income. While frustrating to some, this is actually a really wise eligibility requirement because it keeps you from becoming “house poor” and upping your chances of foreclosure.

If you think a USDA loan might be right for you, don’t hesitate to call your mortgage broker and see if you are eligible. Although parts of it seem too good to be true, it really is a great option for home buyers (ESPECIALLY first time home buyers) to consider. With no money down, 100% financing, and low interest rates, you really can’t beat it!

Arizona Hard Money Loans Arizona Mortgage Broker

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel: (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Thursday, May 8, 2014

What is a USDA Home Loan about for Arizona?

: Trust Deed Investing, Arizona Mortgage Broker

If you are wondering what a USDA Home Loan Arizona is, let me fill you in! A USDA Home Loan Arizona is essentially a mortgage loan, but offered mainly to those who own rural property. It is offered by the United States Department of Agriculture. This loan’s purpose is to provide loans and grants to those who are very low income homeowners in order that they may make repairs, improvements and to modernize. It is also to make sure that their homes are up to date and modernized so that there are no health or safety hazards. It is not the typical mortgage in that USDA Home Loan Arizona requires no down payment, and may be financed up to one hundred percent of the property value. You also must meet the income limit restrictions in the county you reside in. the property must also be in a rural area as defined by the USDA.

Why Might I need a USDA Home Loan Arizona?

: Arizona Mortgage Broker, Arizona Home Loan

If you are unable to make important repairs to your property and the matter is becoming a safety hazard then you might need a USDA Home Loan Arizona. These USDA Home Loans Arizona are meant to help people who reside in a dwelling were it is becoming unsafe to live, whether through a lack of necessary repairs such as bad structure, or health concerns that include, but are not limited to, bad plumbing, poor water quality and supply or pest control problems.

Not just safety is considered, but so is comfort. If your dwelling is ridiculously under-modernized than you might look into a USDA Home Loan Arizona. You will not receive the funds to make your rural home a hot spot or a Countrified Ritz, but if you need necessary repairs then this is the loan for you!

: Arizona Home Loan FHA USDA Specialists

Are you wondering about a USDA Home Loan Arizona?

: Arizona Mortgage Broker, Arizona Home Loan, USDA Home Loan

It is not the typical mortgage in that USDA Home Loan Arizona requires no down payment, and may be financed all the way up to one hundred percent of what the property is valued at. But it is important that you meet the income restrictions on the loan or you will not qualify. Another important thing you need to qualify in is the right rural area. You can look up what rural areas the USDA says qualifies.

A USDA Home Loan Arizona is essentially a mortgage loan, but offered mainly to those who own rural property. This loan’s purpose is to provide loans and grants to those who are very low income homeowners in order that they may make repairs, improvements and to modernize. This is a great way to finally improve your quality of living if you have had a hard time finding any other option.

Is the USDA Home Loan Arizona right for me?

To qualify for a USDA Home Loan Arizona you must live in a rural area, and one that is defined by the USDA. The property you are looking for a home loan on, must be owner-occupied. That means that you cannot use a USDA Home Loan Arizona if you are looking

: Arizona Mortgage Broker, Arizona Home Loans

for an investment opportunity. The owners must also not be able to get credit anywhere else. And if you are under the age of 62 then you are out of luck. Only those age 62 and up are qualified for a USDA Home Loan Arizona. And if you are without adequate housing this is a great option, but you have be able to make the payments. You must also have a reasonable credit history.

If you are looking to make repairs so that your dwelling is safe, cannot get the loan somewhere else, and live in an USDA approved rural area, a USDA Home Loan Arizona is right for you!

: Arizona Mortgage Broker Team, investing in trust deeds Arizona

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel: (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix A

Tuesday, May 6, 2014

What is a USDA Home Loan? Let me tell you! Its Great!

Let me tell you about a USDA home loans Arizona. A USDA home loans Arizona is essentially a mortgage loan, but offered mainly to those who own, or want to buy, rural property. It is offered by the United States Department of Agriculture. It is not the typical mortgage in that USDA home loans Arizona requires no down payment, and may be financed up to one hundred percent of the property value. You also must meet the income limit restrictions in the county you reside in. The property must also be in a rural area as defined by the USDA. This loan’s purpose is to provide loans and grants to those who want to buy a home in a rural area, as well as to those who are very low income homeowners in order that they may make repairs, improvements and to modernize. It is also to make sure that their homes are up to date and modernized so that there are no health or safety hazards.

What are the Benefits of a USDA Home Loan Arizona?

: Mans Best Friend The Arizona Mortgage Broker

The USDA Home Loan Arizona is really a no money down option, and one of the last on the market. IT is interesting because it is backed by the United States Department of Agriculture. These loans offer 100% financing. This means no down payment! You can also have a flexible credit guideline. If fixed interest rates are important for your than look no further, because USDA home loans Arizona has them! There is no maximum loan amount. New and existing homes are eligible as well!

USDA home loans Arizona are a great way to affordably realize their dream of home ownership!

If you are interested check out the availability of USDA home loans Arizona in your area! There is no better time to reach out for your dream of owning a home than right now with a USDA home loans Arizona!

: Arizona Mortgage Broker Team, investing in trust deeds Arizona

Monday, May 5, 2014

What is a USDA Home Loan?

: Arizona Mortgage Broker, Arizona Home Loans

If you are wondering what a USDA home loan Arizona is, let me fill you in! A USDA home loan Arizona is essentially a mortgage loan, but offered mainly to those who own rural property. It is offered by the United States Department of Agriculture. This loan’s purpose is to provide loans and grants to those who want to buy a home in a rural area, as well as to those who are very low income homeowners in order that they may make repairs, improvements and to modernize. It is also to make sure that their homes are up to date and modernized so that there are no health or safety hazards. It is not the typical mortgage in that USDA home loan Arizona requires no down payment, and may be financed up to one hundred percent of the property value. You also must meet the income limit restrictions in the county you reside in. The property must also be in a rural area as defined by the USDA.

**How can I qualify for a USDA Home Loan Arizona?**

: Arizona Home Loan

To qualify for a USDA home loan Arizona you must live in a rural area, and one that is defined by the USDA. The property you are looking for a home loan on, must be owner-occupied. That means that you cannot use a USDA home loan Arizona if you are looking for an investment opportunity. The owners must also not be able to get credit anywhere else. You also must be over the age of 62. You can only use the loan to make repairs to the dwelling in order that it be more habitable and safe. The family must be without adequate housing, but must also be able to make the payments, including taxes and insurance. You must also have a reasonable credit history.

If you are looking to make repairs so that your dwelling is safe, cannot get the loan somewhere else, and live in an USDA approved rural area, a USDA home loan Arizona is right for you!

: Loan Officer Level 4 Funding

Thursday, April 24, 2014

Credit Score Borrower Eligibility for an Arizona USDA Home Loan

USDA Home Loan Borrower Eligibility

No Down, 102% Financing, Low Credit Score - as low as 580, generous ratios of 29/41% makes the Arizona USDA Home Loan Program a winner.

: Arizona Mortgage Broker

General USDA Home Loan Credit Guidelines

A 24-month history of residence is required on all files.

The total debt ratio should include revolving debt regardless of when the debt will be retired. Installment loans will only be considered if the debt will be retired in more than six months. However, if the monthly payment on the debt is substantial, the payment will also be included in long term debt.

If the borrower has co-signed a loan for another party, an acceptable 12-month history validating that the borrower is not making the payment must be provided in order to exclude the payment from the total debt.

If any late payments are reported for the previous 12 months, the liability must be included.

In divorce settlements when one person retains ownership of a residence as a result of the proceedings, it does not imply that the person relinquishing ownership is automatically released of the financial liability associated with an existing mortgage debt. The divorce decree, along with a release of liability from the mortgage creditor, must be presented as evidence that an applicant is no longer legally responsible for the mortgage payment. If no release of liability is granted by the creditor, then the applicant remains legally obligated for the debt. Quit claim deeds do not remove liability for mortgage debts.

When a borrower has a delinquent student loan obligation, a satisfactory six-month repayment history must be provided. Regardless of deferment status, all student loans must have the monthly payment included in the debt ratio calculation.

Applicants with scores of 640 or greater are typically not required to explain recent credit inquiries or to document adverse credit history except for those involving delinquent Federal debt or a previous Agency loan. Existing collection accounts should be paid off at closing, if possible or a stable payment verified and included in the DTI ratio.

Borrowers are subject to the following USDA Home Loan eligibility requirements:

Borrowers may have only one primary residence. Borrowers may be the current owner of a structurally sound, functionally adequate house, as long as it is sold prior to or concurrently with the purchase of the new home. Exceptions may apply on a case-by-case basis by the area RD office.
Borrowers must have a valid Social Security number.
Borrowers may be a permanent or non-permanent resident alien.

In the instance of an expired Green Card, extension documentation is NOT acceptable. The actual Green Card must reflect a valid/unexpired date.

Title to be placed in individual names only.
All borrowers must be screened using CAIVRS (Credit Alert Interactive Voice Response System) to determine if an applicant is delinquent on a federal loan.
Borrowers with more than
- 1x30 day late in the previous 12 months,
- 2x30 day late in the previous 36 months,
- collections filed in the previous 12 months,
- charge offs within the last 36 months,
- judgments filed in the previous 12 months and
- open tax liens with no repayment plan

are indications of unacceptable credit and may adversely affect loan eligibility.

Rent History Delinquencies: 0x30 in the previous 12 months. If the credit report does not provide the housing history rating, a Verification of Mortgage. (VOM) & Verification of Rent (VOR) or cancelled checks is required. If the borrower rents from a relative, the most recent 12 months consecutive cancelled checks is required. Mortgage/Rental

USDA Home Loan C0-Borrower Eligibility:

Co-borrowers are subject to the following eligibility requirements:

Co-borrower must occupy the property (Non Occupant Co-Borrowers are not allowed)
Co-borrower must take title to the property
Co-borrowers must sign note if using income to qualify
The co-borrower cannot be an interested party to the transaction (such as seller, builder, real estate agent, etc.)

Credit History and Credit Score for an Arizona USDA Home Loan

A minimum 580 credit score is required on all loans.

: Arizona Mortgage Broker,

Additional Requirements for Credit Scores 580-639:

A 12-month verification of rent or mortgage with a payment rating is also required on all files when the primary wage earner has a credit score of less than 640. This may be done using a Request for Verification of Rent or Mortgage Account, information contained on the credit report or cancelled checks. All lates greater than 30 days must be documented with an explanation from the applicant.
Recent credit inquiries must be explained
Existing collection accounts must be paid off
Adverse credit histories must be documented
Manual underwriting is required

Credit history must indicate a reasonable ability and willingness to meet obligations as they become due. The following are indications of unacceptable credit history and must be carefully investigated:

More than one payment being more than 30 days late in last 12 months
Charge offs within 36 months which includes foreclosure or Chapter 7
Judgments that are currently outstanding or were paid off within the last 12 months
Outstanding tax liens, no matter what their age, that are currently delinquent
One or more rent payments paid 30 days or more past due in the last 36 months
Accounts converted to collections within the last 12 months that are still due and payable
Outstanding collection accounts, no matter what their age, that is currently delinquent.
Previous Rural Housing Service debt or non-Rural Housing Service debt that resulted in a loss.
Any outstanding judgment obtained by the United States in a federal court (other than a tax lien).
Bankruptcy: Three year wait period
Foreclosure: Three year wait period
Pre-foreclosure and Short Sale: Three year wait period.

The credit report must reflect a zero balance on mortgage liens included in the foreclosure /short sale OR documentation must be obtained to support no further obligation.

Note: at the USDA Home Loan Underwriter's discretion, unacceptable credit history may be waived with sufficient documentation and explanation. Explain by documenting the situation in a letter saying the adverse credit was temporary in nature (lost my job), beyond the applicant's control (company shut down), and the likelihood of recurrence has been removed (got a new job at a better more stable company making more money).

USDA Home Loan Wait period waiver: Less than three years is acceptable with the following requirements:

GUS approval required
Borrower must have a 640 or greater credit score
Satisfactory 12-month documented housing payment history
No late payments leading up to the short sale
Circumstances leading up to short sale must have been beyond the borrower's control and temporary in nature
The credit report must reflect a zero balance on mortgage liens included in the foreclosure /short sale OR documentation must be obtained to support no further obligation.
Clear Credit Alert Verification Reporting System (CAIVRS only - no outstanding claims)

The USDA HOME LOAN is a program that has great benefits and can provide first time home buyers with the opportunity to purchase a home.

The USDA Home Loan Program is a jewel!

: Overview of the USDA Home Loan Program

Arizona Hard Money Arizona Mortgage Broker

: Arizona Mortgage Broker Home Loan

Dennis Dahlberg
Broker/RI/CEO/MLOLevel 4 Funding LLC
Tel: (623) 582-4444 | Fax: (888) 279-6917www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Summary of USDA Loan Requirements USDA Loan Program Arizona Overview

USDA HOME LOAN ARIZONA

PROGRAM OVERVIEW

This little know USDA government loan program is a jewel! No down, easy to qualify low PMI. With Low USDA Home Loan ratios of 29 / 41%. Rates for the Arizona USDA Home Loan are from 3.25%.

: Arizona Mortgage Broker Home Loan

What Areas: Anthem, Buckeye, Queen Creek and most of rural Arizona qualify for the USDA Home Loan Program

The Guaranteed Rural Housing Loan Program is offered through the Rural Housing Service (RHS), an agency of the U.S. Department of Agriculture. The USDA Loan Program offers assistance to low and moderate income rural residents whose income is equal to or less than 115% of the area median income. This program allows 100% LTV, 30-year fixed-rate first mortgages in designated Rural Housing Service areas.

USDA Home Loan Program Purpose

Purchase and Refinance only. Cash-Out is not allowed.

USDA Maximum Loan Amount

Determined by calculating the qualifying ratios and checking county maximum income limits. Maximum loan amount cannot exceed 100% of the appraised value. Maximum loan amount including financed guaranteed fee cannot exceed 102% of the appraised value. On purchase transactions, if the sales price is lower than the appraised value, closing costs may be financed into the loan amount up to a maximum 100% of the appraised value with the guarantee fee not exceeding 102% of the appraised value. USDA is available for borrowers who do not qualify and meet program requirements for Conventional, FHA, or VA financing.

Eligible USDA Property have Geographic Restrictions

: Arizona Mortgage Broker,

In order for a property to be eligible USDA Home Loan for a Rural Development guaranteed loan, the property must be located in a rural designated area designated by the RHS office. Use the following website to determine property eligibility from the home page, click "Single Family Housing" under "Property Eligibility": http://eligibility.sc.egov.usda.gov

The property must be a non-farm tract and the property must be typical for residential properties in the area and may not be income producing or used primarily for agricultural, farming, farm operation or commercial enterprise.

USDA Home Loan Mortgage Insurance

Purchase or Refinance: .40% yearly annual fee added to your monthly payment.
Reserves: 2 months reserves must be collected at closing;
2.00% PMI Guarantee Fee paid up front.

: Arizona Mortgage Broker, Arizona Home Loans

The fee amount is 2.00% of the total principal obligation of the new USDA Home Loan. The fee may be financed into the new loan amount. (Transactions may exceed 100% only by the amount of the Guarantee Fee being financed in the loan amount)

USDA Eligible Property

Owner Occupied Only. 1 Unit, PUD's, Condos, Manufactured Homes permanently affixed to the foundation, built on or after June 15, 1976, and meets all RD requirements, Modular Homes.

USDA Home Loan Qualifying Ratios

The debt ratios are 29 / 41%. Debt ratios may be increased to 32/44% with one of the compensating factors (Good Luck):

For a complete over of the Arizona USDA Home Loan Program:

: Overview of the USDA Home Loan Program