HomeLander Mortgage

Tag: usda mortgage loan

  • The Mortgage Lender that Austin Trusts

    The Mortgage Lender that Austin Trusts

    With multiple home loan programs, competitive rates, and a reputation for outstanding communication throughout the process, we are the mortgage lender Austin homebuyers can count on. HomeLander Mortgage is based just outside of Austin, TX in the beautiful Lakeway area.  Providing home loans across the state and to all counties including Williamson, Travis, Bastrop, Hays, Caldwell, Comal, Guadalupe, and Bexar.  Keep Austin Weird – that is the motto!  Land a loan, land a HOME – that’s our motto!

    Whether you are looking to purchase an existing home, refinance your current mortgage, build a new house from the ground up, or renovate your home, we’ve got you covered!  We will go over your individual needs and situation to determine the right fit for you.  We have the following mortgage programs available:

    Conventional mortgages – Conforming loan programs that are not insured by the government.  Offers more flexibility in terms of property type and characteristics, but loan qualification criteria may be more stringent.  Maximum loan is limited to the current conforming county loan limit for your county.  A 3% minimum downpayment is required and mortgage insurance is needed if having less than 20% equity at closing.  Many people will re-appraise the loan after renovations or payments increase equity, and this can cancel the need for mortgage insurance.

    FHA home loans – Government-insured loan program designed to help homebuyers get into a home with a lower down payment requirement and less stringent credit criteria than conventional loan programs.  Take advantage of down payments as low as 3.5% and flexible credit score requirements.  FHA construction loans and FHA renovation loans are available.

    VA home loans – Government-insured loan program available to veterans, active duty service members, or surviving spouses receiving VA compensation with no down payment or mortgage insurance requirement.  Save money by not having to pay for costly mortgage insurance. Looking to build a new home?  New construction is allowed. Looking to renovate your home, you are in luck!

    USDA home loans – Government-insured loan program designed to assist people in designated rural areas that is available with $0 down.  Income restrictions may apply and mortgage insurance is required.  USDA construction loans and USDA renovation loans are available to those within the designated USDA-eligible areas.

    Construction loans – Conventional construction Loans, FHA construction Loans, VA construction Loans, USDA construction Loans – We’ve got it all! ~ Ask us how you can wrap the entire process into a One Time Close loan and not have to make payments during construction.

    Jumbo loans – Loans exceeding the current conforming loan limits are considered jumbo loans with additional loan qualification criteria such as a 700 minimum credit score and 10% minimum down payment requirements.

    Renovation home loans – Our renovation loan products are perfect for fixer-uppers or older homes that need updating as well as those seeking solar panels and new roofing!  Want to add on a room?  You can do that too!  We have multiple loan options that will suit your needs – Conventional renovation loans, FHA renovation loans, VA renovation loans, and USDA renovation loans.

    Refinancing home loans – When you need to refinance your existing mortgage, we’ve got you covered!  Whether you are looking to lower the rate, change the loan type or term, or utilize the equity in your home for some cash back at closing, HomeLander Mortgage can do it all.  We offer Conventional, FHA, VA, FHA, and USDA refi’s, TX 50(a)(6) Cash Out, Fannie Mae HomeStyle®, Freddie Mac’s CHOICERenovation®, VA Renovation Refinance, FHA 203(k), VA Streamline (IRRL), and FHA Streamline (minimal documentation required).

  • Where Can You Build With A USDA Loan?

    Where Can You Build With A USDA Loan?

    The U.S. Department of Agriculture (USDA) home loans, also known as Rural Development or RD loans, offer 100% financing, low-interest rates, and affordable payments. Additionally, their guarantee fee, which serves as the USDA’s approach to mortgage insurance, can be significantly cheaper than conventional mortgages. USDA loans also have flexible credit standards that can make it easier to qualify. These loans were initially devised to accelerate the economic development of less-dense areas in the United States. 

    With a USDA construction loan, potential homeowners can both finance the land, build a home, and obtain their long-term mortgage – essentially rolling all three loans into one. However, some restrictions do apply.

    The newly constructed home must be the primary residence, and the types of homes eligible to be built are limited to single-family, manufactured and modular homes, and eligible condominiums.

    The biggest factor in USDA Loan Eligibility is that it is location-based. Buyers must use the loan within certain geographical boundaries as published on the USDA’s eligibility maps.

    For the land to be a USDA-approved location, the areas may be “rural in character.” But many small towns and suburbs also qualify. Though buyers in large cities and densely populated suburbs are typically not eligible for these loans, many living in the surrounding areas are. Borrowers don’t have to live in the country or purchase rural land to qualify, and more often than not, USDA-eligible areas are available within 30 minutes of their workplace.

    According to the https://ruralhome.org/ Housing Assistance Council, 97% of U.S. land is located within USDA-eligible boundaries. Those areas comprise nearly one-third of the country’s entire population.

    “Rural” is determined by the USDA by factoring in a community’s overall population, proximity to a major metropolitan statistical area (MSA), and overall access to mortgage credit in the area.

    Therefore, rural areas fall into one of three categories:

    • The area must have no more than 10,000 residents.
    • If the area has 10,001 to 20,000 residents, it cannot be located in an MSA along with a lack of mortgage credit for low- and moderate-income families.
    • If the area has 20,001 to 35,000 residents, it must have been considered rural at one point and have a lack of mortgage credit in the area.

    The easiest way to see if an area is eligible for a USDA Home Construction Loan is to make use of the USDA property eligibility map. Any land outside the shaded areas on the map is eligible. 

    These interactive eligibility maps allow for address lookup. Users can type in the property address into the tool and immediately find out if the property qualifies for USDA financing. 

    Users can also browse neighborhoods and cities.

    Simply enter your address here to see if your address is eligible for a USDA home loan!

    Choosing land in a designated rural area is the first step to qualifying for a USDA loan. As the loan is subsidized through the USDA, borrowers must demonstrate stable income and the ability to make payments without incident for at least 12 months based on assets, savings, and income. Additionally, the borrower must fall under the income threshold dictated by USDA for the area where the home will be located.  

    Other eligibility requirements include: a 640 minimum credit score, no bankruptcy in the last two years, and the USDA must approve the contractors. 

    HomeLander Mortgage will be there to help borrowers determine which type of USDA loan is appropriate to their budget, needs, and qualifications. Schedule a call to begin the process at www.homelandermortgage.com

  • What You Need To Know Before Renovating

    What You Need To Know Before Renovating

    Home renovation loans, also known as Home Improvement loans, are a way for homeowners to finance their fixer-uppers or older homes that need updating. These loans cover the entire renovation project – and yet many potential borrowers don’t know that they are an option – let alone how they work.

    Whether it’s a kitchen or bathroom renovation project, adding on a home office, or installing a new roof, major home improvements require a sound budget. Home renovation loans provide funding for renovating, remodeling, and repairing a home. It can be thought of as a mortgage that includes extra money for home improvements.

    Borrowers who may benefit from a home renovation loan are contemplating home improvement ideas.

    • Are you looking to modernize a kitchen or bathroom(s)?
    • Are you looking to remodel a home to fit your lifestyle and family needs?
    • Are you wanting to add one or more rooms to the house?
    • Are you contemplating the purchase of a home with a low asking price but in need of serious work?

    Additionally, these types of loans give more homeowners and/or borrowers more control over building equity. By making improvements and substantial upgrades, these projects will improve the value of the property in the long run.

    Some types of home renovation loans available include conventional renovation loans, FHA renovation loans, USDA renovation loans, and VA renovation loans.

    Conventional Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
    • Closing costs can be rolled into the loan.  Ask us how. 
    • 97% financing available
    • 620 minimum FICO score required

    FHA Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI (principal, interest, taxes, and insurance) payments are due during the renovation period.
    • Closing costs can be rolled into the loan. Ask us how.
    • Up to 96.5% financing available
    • 620 minimum FICO score required

    VA Renovation Loans at a glance: 

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI payments are due during the renovation period.
    • Closing costs can be rolled into the loan. Ask us how.
    • 100% financing available (90% on refinance transactions)
    • 620 minimum FICO required
    • Repairs must be non-structural

    USDA Renovation Loans at a glance:

    • Low fixed rates that are locked prior to closing and guaranteed.
    • PITI payments are due during the renovation period.
    • Closing costs can be rolled into the loan. 
    • 100% financing available
    • 620 minimum FICO score required

    While they are similar in that banks and other approved lenders issue them, they differ greatly in type and who qualifies.

    The Federal Housing Administration insures FHA-Insured Loans. Though the FHA does not have income requirements, borrowers need to prove their income, and there are limits on loan amounts. 

    VA Loans are available to veterans who have served or are currently serving in the armed forces, reservist/national guard members, or an eligible surviving spouse. The Department of Veteran Affairs guarantees these types of loans. Borrowers must also have a Certificate of Eligibility (COE). The COE proves that the applicant officially meets the minimum military service requirements. This type of loan is only available through certain VA-approved lenders. 

    The U.S. Department of Agriculture (USDA) loans are for homes in rural areas, though many other suburban communities and locations are also able to qualify. The loan is subsidized through the USDA. Borrowers must demonstrate stable income and the ability to make payments without incident for at least 12 months based on assets, savings, and income. 

    HomeLander Mortgage will be there every step of the way to help borrowers determine which type of renovation loan is appropriate to their budget, needs, and qualifications. Schedule a call to begin the process at www.homelandermortgage.com

  • The Differences Between a VA, FHA, and USDA Mortgage

    The Differences Between a VA, FHA, and USDA Mortgage

    The Differences Between a VA, FHA, and USDA Mortgage

    There are various loan types and programs available for homebuyers. These include FHA-insured, VA-guaranteed, and USDA Mortgage loans. While they are all similar in that they are issued by banks and other approved lenders, they differ greatly in type and who qualifies.

    FHA Loans

    FHA-Insured Loans are insured by the Federal Housing Administration. If a homeowner defaults on their loan and the house isn’t worth enough to fully repay the debt through a foreclosure, the FHA compensates the lender for the loss. 

    Since this type of mortgage loan is government-insured, lenders are able to offer competitive terms, including low down payments (as low as 3.5%). 

    FHA loans are also easier to qualify for than conventional mortgages.  Borrowers with lower credit scores – even as low as 500 – may be found eligible for this type of loan depending on the circumstances. However, to qualify for the lowest down payment, a score of 580 or higher is required.

    FHA-insured loans also have maximum loan limits that vary depending on the average cost of housing in a specific region. 

    Borrowers also have to pay a “mortgage insurance premium” (MIP) as part of an FHA loan. While most conventional mortgages have PMI (Private Mortgage Insurance),  MIP is what borrowers pay to contribute to a Mutual Mortgage Insurance Fund. FHA uses this fund to pay lenders’ claims if a borrower defaults.

    FHA loans also require a property appraisal from an FHA-approved appraiser. Additionally, if borrowers are behind in their mortgage payments, with an FHA loan, they have access to special loss mitigation options.

    Though the FHA does not have minimum income requirements, borrowers need to prove they can afford the loan they are seeking, and there are limits on loan amounts. With FHA loans, there is also the upfront mortgage insurance premium that is due at closing, but is rolled into your loan for you.  

    As of 2019, the agency has tightened the underwriting requirements for FHA-insured loans. Four to five percent of the total mortgages that the FHA insures on an annual basis—which would have previously been approved automatically – will now be put through a more rigorous manual underwriting review.

    VA Loans

    The VA loan program is available to veterans who have served or are serving in the armed forces, a reservist/national guard member, or an eligible surviving spouse. These types of loans are insured by the Department of Veteran Affairs. VA loans typically do not require any money down. 

    Borrowers need a satisfactory credit score but are allowed some flexibility in debt-to-income criteria. Borrowers must also have a VA Certificate of Eligibility (COE). The COE proves that the applicant officially meets the minimum military service requirements. This type of loan is only available through VA-approved lenders. With the VA guarantee, lenders are protected against a portion of the loss if the borrower defaults.

    VA loans usually come with low-interest rates. Additionally, there are up to 30 years of loan terms available for your mortgage. Most importantly though, with a VA loan, no PMI is required. That means there is no extra expense to the borrower for mortgage insurance on top of their normal monthly mortgage payment. Additionally, with a VA loan, there is no prepayment penalty.

    Borrowers do, however, normally pay a funding fee to VA. This is a one-time charge of between 1.3%-3.6% of the total loan amount, depending on the down payment and if the veteran has used the VA loan benefit before.  The VA funding fee can be rolled into the loan.  Additionally, veterans with a service-related disability of 10% or more are exempt from paying the VA funding fee. 

    As the VA does not lend directly, borrowers have to find their own VA-approved lender. 

    USDA Loans

    The U.S. Department of Agriculture (USDA) offers one of the most overlooked mortgage loan programs. USDA loans are for rural areas, though many other suburban communities and locations are also able to qualify. This loan makes purchasing a home more affordable for low-income individuals living in these designated areas.

    With a USDA loan, borrowers can secure a home with zero to low-down-payment as well as low-interest rates. The loan is subsidized through the USDA. Borrowers can also qualify for a USDA loan with a lower than average credit score.

    Since USDA loans are for families who demonstrate economic need, the qualifying adjusted gross income can not exceed more than 115% of the median income in the specified area. 

    Borrowers must demonstrate stable income and the ability to make mortgage payments without incident for at least 12 months based on assets, savings, and income.

    Lenders also take the debt-to-income (DTI) ratio into consideration with a recommended DTI of 44% or lower. Additionally, many lenders will require a credit score of 640 or more.

    The house must be the primary home and cannot be a working farm and the home appraisal must meet USDA standards.

    USDA loans come with upfront and annual guarantee fees. The annual fee is added to the monthly payment and lasts for the life of the loan. The USDA monthly guarantee fee is typically lower than PMI or the FHA MIP.  And borrowers can roll the upfront guarantee fee into the loan. These fees are similar to MIP and go towards the funding of the USDA loan program and guarantee. 

    Closing costs can also be rolled into the loan as long as the home appraises for enough to cover it. Additionally, borrowers who already have a USDA loan can refinance it into a new USDA loan.

    HomeLander Mortgage will be there every step of the way. Schedule a call to begin the process at www.homelandermortgage.com