Home Loan Learning Center

USDA loans are backed by the United States Department of Agriculture and are aimed at people wishing to buy a property in a rural area. People working from home or who can adjust their lifestyle to a rural setting can benefit from low mortgage rates and favorable terms and conditions on their mortgage with a USDA loan.  Before you start looking for a home that qualifies under the USDA home loan requirements, you should get

Understanding the Path Forward Filing for bankruptcy doesn’t mean you can’t obtain a home. Chapters 7 and 13 are legal arrangements that help people overcome financial difficulties and bounce back. Mortgage after bankruptcy is still an option.  Generally, you need to wait 3 years after Chapter 7 bankruptcy before you apply for a USDA home loan. However, there are ways to reduce this time to as low as 12 months.  If you have previously filed

As a first time home buyer, this question may be haunting you throughout the loan process. Here are a few reasons why your underwriter may ask for more documents. The original documents sent in for review didn’t cover all the requirements to get your loan approved. Or, the documents opened questions the underwriter needs answers or more documents to clear up. Your original loan application changed. There was a risk flagged on your loan First

The underwriter is requesting you send “source documents” for non-payroll deposits over $100 showing on your bank statements. What exactly does “source documents” means? These documents are the original record of transaction and can be used as evidence that a transaction occurred. You must tell the underwriter in writing along with sending supporting documents or “source” documents for each transaction the underwriter is questioning. You must address each deposit date and amount. Each document should include the name and address of

One thing many potential borrowers are unaware of is that there are two distinct types of USDA loans, the Direct and the Guaranteed. The Direct loan is intended for very low to low incomes. Unlike the guaranteed which is funded by a bank or traditional lender, the Direct is actually funded directly by USDA. The Guaranteed loan allows a borrower’s income to be up to 115% of the median area income. However, the Direct only

When you hear 100% financing, no money down as an option for a loan most people say, “no way, not possible, what’s the catch?” Many people, including lenders do not even know this loan program exists.   What is the name of this loan and how does it work? It goes by a few different names: USDA Rural Development Home Loan, USDA Home Loans, RD Government loans.  No matter what you call them, there is

When looking into a home purchase the USDA Home loan program is a great option as it is intended to help individuals get into a home without having to put a down payment on the property.   However, the USDA program has a lot of guidelines that have to be met for qualifying purposes that may differ from the traditional mortgage programs available.  Having a clear understanding of the specific requirements will make the process of

While a regular USDA loan lets you buy a house that’s already built, a USDA construction loan lets you build a new one instead. USDA considers a property new construction if the dwelling has been built within 12 months and has never been occupied.  What Are The USDA Construction Loan Requirements? Evidence Of Certified Plans And Specifications The first major requirement is that the lender is required to obtain evidence that a new construction property

Do I need both?  Home appraisals tell you how much a home is worth, and a home inspection tells you why you might not want to buy it, regardless of price. Both processes have the capacity to derail home purchases. Low appraisals sometimes sink loan approvals and disastrous home inspection reports might cause buyers to rethink purchase offers. Home appraisals are estimates of the market value of a home made by professionals, according to guidelines

The Real Estate Settlement Procedures Act (RESPA) is an act passed by Congress in 1974.  It was designed to protect potential homeowners and enable them to become more informed consumers.  This act requires lenders to provide more information to borrowers at certain points in the loan process and prohibits referral fees and kickbacks between lenders and third-party settlement service agents in the settlement process.  Some disclosures list out the costs of the settlement, outline lender

Here at Consumer Real Estate we specialize in helping individuals utilize the USDA Home Loan Program to make the dream of home ownership a reality. The USDA Home Loan program is a 100% financed program that allows people to purchase a new home with no down payment at all.  It is meant to make the home buying process a bit easier and put less financial strain on an individual at the time of purchase! What

What Does A Loan Officer Do? Being a loan officer is the greatest job someone could have.   In my position, I get to work with someone from the first time they call in or fill out an online questionnaire and see them into their first home or sometimes maybe the home they plan on growing old in.   All situations are different. But all are equally rewarding.   My favorite however, is working with