This week, we will start with the ever popular USDA 100% Program.  Here are a quick highlights on the program:

• 100% Financing
• Seller Concession of up to 6%
• No PMI
• No Reserves Requirement
• Can Substitute Schooling for Experience

As with any program, there are guidelines and requirements that must be met.  With the USDA 100%, a borrower has to meet certain income levels while staying below a debt-to-income level threshold.  The property that is being purchased even has restrictions that are determined by geographical location.

To find out more about the USDA 100% Program, call us today at 352.308.7219 or click to Apply Now.

Normally, I would compare the difference, but who really cares what once was if new is better.  (If you really want to see the old values, click here.)  So here is what the new tiers with higher limits looks like:

AND TOTAL INCOME CAN BE MUCH HIGHER THAN THE ADJUSTED INCOME LIMITS

If you total income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 or younger. You can deduct $480 for anyone under 18 or a student who is not one of the applicants. Other deductions may be available. No need to memorize deductions. Use the calculator here <Click ‘single family’ under “Income Eligibility”>

Example: Lake County 4-person family (2 adults, 2 children) has a gross income of $84,560. Child care for the two children age 12 or less is $10,000 annually. Is the threshold income at or below the limit? YES! $85,860 less

$10,000 child care less $480 for each child = $74,900.  They are within the limit.

Want to see if you qualify or become pre-approved?  Call us today to get the process started, or simply click “Apply Now” on the right or top of the page and complete our short application.  By the way, check out today’s rates on USDA 100% guaranteed home loans by clicking on today’s date in the DAILY RATES Calendar.

Here is what you need to know about that statement: some lenders have a waiting list of borrowers ready to close on these USDA guarantee loans.  Just like anything else in life, it is first come first serve.  Just like USDA’s normal annual budget, these funds that are being granted to these mortgage programs will go fast.

Remember, USDA offers 100% financing and it is not just for first-time home buyers.  It is limited to primary residences only, though.  It even allows for up to 6% concessions towards closing costs.  And even better, there is no mortgage insurance with these mortgage loans.

But do not fret.  If you are still shopping for a new home and have not been able to find that prefect one, Knightlines can still get you funded even if USDA itself runs out of money again.  Our resources offer portfolio financing that allows us to continue this product and fund on it even when USDA cannot no longer buy the loan.  The loan will still be backed and guarnateed by USDA; they just have not purchased the loan from our lending source.

So, no pressure on finding the house today.  But you better find it tomorrow because interet rates are a whole other story. 

Before we compare these two programs, we are first going to disclose the following: Despite USDA being out of money, Knightlines has funding sources that are still able to close and fund the USDA Guarantee Loans with all the benefits of the loan.

As you can see there are a lot of similarities between the two programs, but each has its own uniqueness to make it more attractive than the other based on your, the buyer’s, needs.  Call us today to discuss your situations, or apply online now to secure your financing before time and money runs out.

I have heard it more than enough times that USDA has run out of money for this program until Congress grants them more money.  What this really means is that it is up to the individual bank if they want to fund the deal on their own tradelines, or wait till the money is given.  The banks that choose to fund are still protected by USDA in case of default on the loan.  The banks that do not fund are doing so because they either do not have their own tradelines or would rather use their lines to purchase other mortgages that they can sell immediately.

What does this mean for you?  This means that if you are found to be in a USDA approved area, you qualify for:

• 100% Financing – No Down Payment
• No Mortgage Insurance
• Up to 6% in Seller Concessions
• If appraisal is greater than purchase price, then closing costs may be financed
• No Minimum Credit Score – All applications are manually underwritten
• Not limited to first-time buyers

To find out if you qualify for a USDA Guaranteed Home Loan Mortgage, call us today or complete our application online now.  Home prices are low.  Interest rates are low.  Now is the time.  What are you waiting for?  Act today.

Home prices are down.  Mortgage rates are down.  Now, is the time to buy.

Call Knightlines today at (352) 308-7219 to get your financing reserved, or click here to apply online.

• No Mortgage Insurance
• No Reserves
• No Minimum Credit Score
• Not Limited to First Time Home Buyers
• Unrestricted Gifts
• If appraisal is higher than purchase, you can finance the closing costs in to the loan

If this is still no enough for you, then may be you should reconsider how serious of a home buyer you are…

With any mortgage program, there are requirements that must be met.  The first is income eligibility.  Here is a simple chart to see if you qualify:

CURRENT TABLE (Income limits have been changed as of April 20, 2009.  Click here to view the income table.)

PROPOSED TABLE

For each person over 8-persons, add 8% of the 4-person limit.

NOTE:  This is not an income increase for the 4-person and 8-person households. It simply removes the tiers for the 1-3 and 5-7 person households.  It does have the effect similar to an income increase for those families in the 1-3 and 5-7 groups.

Reminder: These are NOT gross income limits.  THE TOTAL ADULT HOUSEHOLD INCOME CAN BE MUCH HIGHER THAN THE “ADJUSTED” INCOME LIMITS IN THE TABLE.  Deductions are allowed for: child care (12 yr old or less) to allow employment of the adult; $480/annual for each non-applicant under age 18; $480/annual for full time student over age 18; and $400 if anyone is elderly or handicapped.  If the gross adult household income is less than the limit, you are good to go.  If the income is over the limits, use the adjustments.  Make it simple by using the web calculator here.  Click on “single family housing” under “Income Eligibility”.

In addition to income, the property must be eligible.  By using the same link, you can find out if the home you are purchasing is in fact eligible.  However, counties like Lake, Collier, and various other counties in the interior, northern, and panhandle of the state are 100% eligible.  Counties like Lee and Palm Beach are only partial eligible.  The best way to determine is not to guess, but to enter in the exact address of the property.

With these two main hurdles overcome, there are only two minor conditions left.  The first is that you must be able to afford the home.  The debt-to-income ratio requirements are more than fair and easily obtainable for most home buyers.  The second is that even though there is no minimum credit score requirement, you must at least have good credit.

So there you have, the last of your excuses has been dispelled.  Home buying is possible and affordable.  Now, get off you duff, call your Realtor, and start shopping for your new home.  And while you are shopping, contact Knightlines Mortgage Services, LLC to reserve your funds for our 100% USDA Home Loan.  And to build off of Nike… “Just do it… TODAY!”

The USDA 100% mortgage loans offer many benefits to potential home owners. The biggest being no down payment. Also, at the top of the list is the fact that there is no extra costs in your monthly payment in terms of mortgage insurance. Eh, what the heck? Here is a list of all the benefits a USDA loan has to offer:

1. No Down Payment.
2. If the appraised value comes in higher than the contract sales price, you can wrap closing costs into your loan.
3. No PMI (AKA Mortgage Insurance).
4. No Reserves. This means you do not need to have lots of money in savings, as some banks require.
5. No Minimum FICO Score. You must at least look creditworthy.
6. Available For First Time Buyers and Non-First Time Buyers.
7. Substitute Schooling/Education for Job History.
8. Unrestricted Gifts. Gift money is not sourced or seasoned when used for closing costs.

And yes, just like any loan, you have to qualify for it. So, how do you qualify? Well, the biggest hurdle is already overcome. You live in Lake County. According to USDA Rural Development, you are already in an eligible area. The next obstacle standing in your way is income. If you make too much money, you best be looking somewhere else. For sake of giving a chart and directions on how to use it, visit this site. With its fast and easy calculator, it will tell you whether or not you are eligible (or just call us). (And if you live outside of Lake County, you can use the same site to see if your property is eligible.) Last, but not least, you debt-to-income ratios must be within guidelines. We will be more than happy to calculate this figure for you when you call us for you new home loan.

To qualify for this loan, call 352-308-7219 and ask for your USDA Grade A Home Loan.