How do you qualify for a USDA new construction loan with no down payment?

How do you qualify for a USDA new construction loan with no down payment?. "Yes or No in 48 Hours Pre-Qualification" Mortgage Tip in Punjabi

How do you qualify for a USDA new construction loan with no down payment? video duration 3 Minute(s) 7 Second(s), published by Metroplex Mortgage Services on 17 08 2018 - 04:59:07.

https://www.usdaloanpro.com/blog/2018/08/17/how-do-you-qualify-for-a-usda-new-construction-loan-with-no-down-payment/ We all know that it can be an Hi I am Giuseppe Battaglioli from My Denver Home Loan at Hallmark Home Mortgage-Colorado
I am truly passionate about my profession, and the result is that .

. Some Lenders are not subject to the Stress Test Guidelines of the Government that obligate Banks to qualify applicants at the Contract Rate plus 2%
Clients that

https://www.usdaloanpro.com/blog/2018/08/17/how-do-you-qualify-for-a-usda-new-construction-loan-with-no-down-payment/

We all know that it can be an exciting process to build and customize your new home, but it is common for banks to require at least a 20% down payment.

However, under the USDA P Single-Close Construction to Permanent Loan there is no down payment required and in today’s video I will break down the qualifying process to help you prepare for the next steps.

Remember though, the first step to any mortgage is a proper qualification and as a USDA Approved Lender that is what we do best, so just call or email to discuss your scenario, state a new pre-qualification, or take advantage of expert advice from our free Second Opinion Service (SOS).

(800) 806-9836 X 280SeanS@MPLX.org

As a starting point, under their combination construction-to-permanent loan section USDA guidelines provide the following description for their Single-Close Feature:

“A single-close loan combines the features of a construction loan, which is a short-term interim loan for financing the cost of construction, and the traditional long-term permanent residential mortgage.”

After an eligible applicant has been properly qualified, here is what can be expected under the USDA Single-Close program:

1. Look for land and work with a builder on construction costs to fit their budget

2. Once land and builder have been selected, the appropriate contracts would be executed

3. This would be followed by loan application, appraisal, underwriting, and obtaining the USDA commitment

4. Once all conditions are satisfied then the closing is scheduled

5. **Remember, closing occurs prior to the start of construction with the single-close program**

6. Construction begins and draw payments are administered as the build-out progresses

Key points to remember:

1. USDA loans allow for “No Down Payment” and this is the same for both existing and new construction which makes a big difference when a traditional new construction loan may require at least 20% down payment or more!

2. USDA qualifications for property eligibility remain the same, which means that the property must be located within a USDA designated eligible area.

3. USDA has county income limits based on household size that still apply, but because USDA has recently increased these county limits they do provide for healthy income levels to work with on a variety of price ranges.

4. Last but not least, minimum credit qualifying and underwriting criteria is required as part of the approval process and while understanding your budget upfront is always important, getting properly qualified by an actual USDA Approved Lender is a critical step, especially when dealing with variables such as land and construction costs.
Make sure to stay tuned for next week when I will break the eligible loan costs which can be included within the USDA construction to permanent loan.

http://www.USDALoanPro.com
Download our FREE USDA Blueprint for Success! http://www.usdaloanpro.com/blue-print-for-success/

GET MORE INSIGHTS

More ProTips from USDA Loan Pro:

Subscribe on YouTube:
http://www.youtube.com/subscription_center?add_user=MetroplexMortgage

Website:
http://www.usdaloanpro.com

Facebook:
https://www.facebook.com/MetroplexMortgage

Twitter:
https://twitter.com/USDALoanPro