USDA Commitment Done Right!
We love USDA loans! Not only are buyers able to purchase with no money down, but it is flexible on credit. On top of this, USDA just made homeownership more affordable effective 10/1/16! This was accomplished by USDA drastically lowering the guarantee fee and the monthly mortgage insurance. Now check out our USDA Success Story of the week below! We received a USDA Commitment very quickly and closed as scheduled.
Our Process Allows for Quicker USDA Commitment
We just closed a purchase with a USDA loan 22 days from the contract receipt. So, we received the purchase contract on 9/8/16 with an expected contract closing date of September 30, 2016. Then, after processing & underwriting, we received the USDA commitment on 9/27/16. Only 19 calendar days for the commitment and that includes the four day wait at USDA!
So how do we do this? First of all, our purchase process is geared for speed. Along the way, we even communicate updates to all parties. In order for a quick closing to happen, the buyer must provide documentation when requested. Our buyer provided all documentation requested very early. This allowed us to have much of the process completed prior to contract. Additionally the real estate agents provided all requested information in a proactive manner. Basically, when people work as a team, good things happen! We feel that Our Process creates the best chance of success for buyers. That is why we feel comfortable leading the purchase process, yet working as a team with all parties. Communication and Execution for your success!
Quotes From This USDA Commitment Success Story
We love our customers and love working with Realtors, builders, attorneys, among others in the purchase process. So it makes us so happy to get comments like these from this purchase.
Buyer’s agent: Because of how difficult this feat can be, our understandable first quote from this agent was “I will be extremely surprised if it closes on time.”. But as we progressed through the purchase process, it changed to “this lender has done extra things I’ve never seen any other lender do.”
Listing agent: “You guys didn’t try to get it done, y’all done this thing and my sellers are ecstatic.“. Actually both agents mentioned that this is one of the best processes they have ever been through on a purchase.
Buyer comments: “You and your team have been a dream come true. This was nothing like the previous process when I bought a house. We got clear to close and moved the time forward. I’m speechless, thank you!“
Is a USDA Home Loan Right For You?
USDA may be the least known mortgage type. But besides VA, it is the only other single loan financing 100% and it is cheaper now. Improvements to USDA includes the following:
- Guarantee fee decreases from 2.75% of the loan amount to 1.0%. Lowest Funding Fee for Government loans!
- Annual Fee (like PMI) reduced from .50% to .35%
There are some nuances with USDA financing. For instance, homes must be in a USDA eligible area. Furthermore, the household income must be lower than the USDA county limit. BUT, there are ways to exceed the liberal USDA income limits! Believe it or not, most properties across the U.S. lie in USDA eligible areas. There are also misconceptions about getting a USDA commitment. These misnomers include USDA is only for small loans, farms, or low income borrowers. This is definitely not the case. Learn more specifics of this no money down loan here.
Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.