Today I would like to introduce you to USDA Single Family Housing loans. The United State Department of Agriculture Rural Development has 2 programs that work for the purchase of Single Family Housing. These programs are Rural Housing Direct Loans and Guaranteed Rural Housing Loans.
The best aspect of these loans is that they will finance 100% of the purchase price for a single family home. These loans come with conventional interest rates, there is NO monthly mortgage insurance and the seller can pay for all of the buyers closing cost and pre-paid items. What this means for the buyer is that they can afford more house and they do not need to have any money to get into to the home “as long as they can find a seller that is willing to work with them”. For the seller this means that they can potentially have a larger pool of buyers that can qualify to purchase their home.
The negative aspect of these programs is that they are only available in Rural parts of the United States. This means that these programs are not available for homes in Portland, Vancouver or Salem. USDA is how ever available in almost all of the smaller towns and communities throughout the country. The USDA does provide a search engine to determine if the home that you are looking to buy or sell will qualify for their program. Please go the following link and click on single-family housing under Property Eligibility and fill in the information that is requested. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do . Below is a map of the Portland and Vancouver. The areas that are shaded “do not” qualify for the program.
The next negative aspect to these programs depending on your point of view is that only moderate and very low-income individuals and families can qualify. Based on the following chart a single person household is considered Very Low Income if they make less than $23,750 a year, a 2 person house hold is considered Very Low Income if they make less than $27,150 a year and so forth. The diagram below is for Portland-Vancouver-Beaverton, OR-WA MSA. Please note that most counties throughout the United States have a different income limits.
1 2 3 4 5 6 7 8
VERY LOW INCOME 23750 27150 30550 33950 36650 39400 42100 44800
LOW INCOME 38000 43450 48900 54300 58650 63000 67350 71700
MODERATE INCOME 43500 48950 54400 59800 64150 68500 72850 77200
38 YEAR TERM 28500 32600 36650 40750 44000 47250 50500 53800
For a more detailed determination of weather you or a client qualify for one of these program based on income click the following link and then click single family housing under Income Eligibility. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do .
Rural Housing Direct Loan program or Guaranteed Rural Housing Loans?
If you find that you are Very Low Income to Low Income you will be working with the Rural Housing Direct Loan program. Rural Housing Direct Loans are loans that are directly funded and accessed through the USDA Rural Development. These loans come with lower than average fixed interest rates and some may be able to be financed over 35 years.
If you are Low Income to Moderate Income you will be working with the Guaranteed Rural Housing Loan program. Guaranteed Rural Housing Loans are originated by approved mortgage lenders. This means that you will need to work with a mortgage professional or a bank to get access to the Guaranteed program. The interest rates for the Guaranteed program are about the same as interest rate for FHA and Conventional loan programs. The advantage that this program has over FHA and Conventional is that there is NO Monthly Mortgage Insurance and you do not need to put any money down, THIS IS HUGE.
Anytime that you do not have at least 20% to put down when purchasing a home you will be required to either get a 1st and a 2nd mortgage or you will need to pay for monthly mortgage insurance of some kind. With an FHA loan where you are buying a home for $200,000 and putting 3% down your monthly mortgage insurance for the first several years is going to be about $66.00 a month. If you were buying the same $200,000 dollar home with a conventional mortgage and putting 5% down your monthly mortgage insurance would be about $149.00 a month. No matter what, your month payment will be higher if you do not have 20% to put down. The only programs that I am aware of that DO NOT require monthly mortgage insurance for loans with less than 20% down are VA, USDA and some high interest rate loans that have the mortgage insurance built into the interest rate.
USDA does have what is called a One time 2% guarantee fee. This fee can be financed into the loan. For example: You purchase a home for $200,000.00. $200,000.00 X 2% = $4,000.00. The beginning balance of your loan if you did not put any money down would be $204,000.000. Max Loan to Value for USDA loans is 102%. I am not sure if the Direct Loan Program requires a 2% guarantee fee.
Here is an example of a USDA loan that I closed for an Oregon client in August 2008. This is for a new manufactured land home package. The seller / manufactured home dealers paid for all of the buyers closing cost of $4605.44 and pre-paids of $1,893.95. The borrowers were able to buy this property with Zero Money Out of their Pocket.
Total purchase price 193,377.00.
+ One time 2% guarantee fee $3,867.00
_________________________________
Beginning Loan Balance $197,244.00
The borrowers have a fixed 6.5% interest rate for 30 years.
Principle and interest payment of $1,246.72 + taxes of $87.58 a month + insurance of $39.58 a month for a Total Monthly Payment of $1,373.88 a month.
APR 6.679%
Please remember that this is just a very quick over view of just two of the many USDA loan programs that are available. If you would like more detailed information about these and other USDA programs please click on one of the following links. USDA Rural Development Home page http://www.usda.gov/wps/portal/usdahome / Oregon RD http://www.rurdev.usda.gov/OR/USDA / Washington State RD http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Please feel free to call or email with any questions I will do my best to help you.
Thanks again and good luck.
Ron Hopkins
LoanSource Funding, LLC
16703 SE McGillivray Blvd.
Suite 215
Vancouver, WA 98683
WK: 360-567-2596
Cell: 360-903-7601
Fax: 360-838-6578
Email: ronh@lsfloans.com
WA License Number: 510-LO-33252
OR License Number: ML-2750
Tuesday, November 25, 2008
Monday, March 31, 2008
Please Feel Free To Ask Questions!!!
Please feel free to ask questions. I am here to help you understand the financing process for both purchasing and refinancing manufactured homes in park and on their own land.
If you have a question on your mind please feel free to ask, chances are there are several other people with the same question.
Thanks again,
Ron Hopkins
If you have a question on your mind please feel free to ask, chances are there are several other people with the same question.
Thanks again,
Ron Hopkins
Tuesday, November 20, 2007
How to find a GOOD DEAL on a Manufactured Home.
I worked for a manufactured home dealer in Oregon for about 4 years. One of my jobs was to find people that were interested in selling their manufacture homes. My other job was to find people that were interested in purchasing manufactured homes. As a manufactured home dealer we were only licensed to buy, list and sell manufactured homes only. Because we were not licensed to sell land 90% of the manufactured homes that i listed and sold were in manufactured home communities.
When working with a potential buyer I would always try to get at the very specifics of what they were looking for. The first thing that I would ask is where do you want to live? How big of a home are you looking for, 2 or 4 bedrooms act. Would you like to live in a family park or 55+ park for people that are 55yrs of age and older. Is it important to you to have a clubhouse and pool or does it even matter. Once I figured out what they were looking for I would find out how much they had to spend on a manufacture home based on their down payment, credit and income. Now would be a good time for you to put a list together about what it is that you are looking for. Price, Size, act.
TIME TO GO SHOPPING.
Now that I know what I am looking for the 1st thing that I am going to do, is see what listings my company has available that would fit their needs. If we did not have any thing available I would start to call other Manufactured Home Brokers and see if they had anything that fit my clients needs. If you have a computer just type into a search engine the name of the town or city that you live in and add the word mobile home dealer or manufactured home broker. Example: Manufactured Home Brokers Portland Oregon, Manufactured Home Dealers Vancouver Washington, or replace the word Manufactured Home with Mobile Home. Once your search produces a list just start calling these dealers and ask them if they have what you are looking for. Don’t forget to go to ( http://rmls.com/RC2/UI/Home.asp ) and do a quick search as well.
Next I would start shopping on line. I would start at Craig’s list.
( www.craigslist.com ) Click on the city that is near where you live, click on Housing, click on Real Estate For Sale, put Mobile Home or Manufactured Home in the Search For Box and then put the Maximum that you are willing to pay for a home in the Price Box and hit SEARCH. This is a very good site because it is FREE for anyone to place a listing.
Now it is time to go to the local penny newspapers like the Nickel Ads
( http://www.nickelads.com ) Click on Real Estate: Sale, scroll down to Sub Categories and high light Manu., Mobile Homes and hit SEARCH. This is a good site because it is not that expensive for the average JO to list his mobile home for sale.
Now it is time do a search for you Local Community Newspapers. In your search engine type in News Papers and the name of YOUR TOWN and hit search. Example: if I typed in Newspapers Camas Washington into a search engine I will get Camas Washougal Post Record. Once you find the news papers that are in your area just click on the link to the Newspaper, click on Real Estate For Sale, go to the sub categories and click on mobile home or manufactured home listings and you will see what mobile homes are for sale in that publication. If you live close to a major metropolitan area don’t forget to look at the classified section of the major newspapers like the Oregonian in Portland and the Seattle Times in Seattle. These big news papers over lap a lot of smaller towns and communities.
If you still have not found a manufactured home that meets your need it is time to get into your car and start driving to the Manufactured Home Communities. You can get a list of all of the manufactured home communities in Oregon by clicking on (http://o.hcs.state.or.us/MDPCRParks/ParkDirQuery.jsp ) then start you search. For a list of Parks in Washington State click here: (http://www.mobilehome.net/communities/wa/index.htm ). I am not sure how good the Washington State list is. The yellow pages are also a good place to find listing of the mobile home parks in your city.
Now that you have found a list of the manufactured home parks in your area you might want to start off by calling the Park Manages and ask them if they know of any one in their community that would like to sell their manufactured home. Park Managers can be one of your very best resources. Next I would get into my car and start driving around in the manufactured home communities that are in your area. Make a list of all of the For Sale Homes in the Park that you would like to get some info on. If the park manager is available stop and say hi and let them know what you are looking for. They usually know of people that would like to sell but have not bothered to put up a sigh. Make sure to write the name of the park down when you drive in and put your For Sale list under the Parks name otherwise you will loose all track of where you saw that home. When I went through parks I would carry my digital camera and take a picture of the sign that has the parks name on it and a picture of the homes that I was interested in.
Next weeks article will be " What to do after you have found a Manufactured home that you are interested in".
Please let me know if this was help full information and feel free to leave questions or comments.
Ron Hopkins
When working with a potential buyer I would always try to get at the very specifics of what they were looking for. The first thing that I would ask is where do you want to live? How big of a home are you looking for, 2 or 4 bedrooms act. Would you like to live in a family park or 55+ park for people that are 55yrs of age and older. Is it important to you to have a clubhouse and pool or does it even matter. Once I figured out what they were looking for I would find out how much they had to spend on a manufacture home based on their down payment, credit and income. Now would be a good time for you to put a list together about what it is that you are looking for. Price, Size, act.
TIME TO GO SHOPPING.
Now that I know what I am looking for the 1st thing that I am going to do, is see what listings my company has available that would fit their needs. If we did not have any thing available I would start to call other Manufactured Home Brokers and see if they had anything that fit my clients needs. If you have a computer just type into a search engine the name of the town or city that you live in and add the word mobile home dealer or manufactured home broker. Example: Manufactured Home Brokers Portland Oregon, Manufactured Home Dealers Vancouver Washington, or replace the word Manufactured Home with Mobile Home. Once your search produces a list just start calling these dealers and ask them if they have what you are looking for. Don’t forget to go to ( http://rmls.com/RC2/UI/Home.asp ) and do a quick search as well.
Next I would start shopping on line. I would start at Craig’s list.
( www.craigslist.com ) Click on the city that is near where you live, click on Housing, click on Real Estate For Sale, put Mobile Home or Manufactured Home in the Search For Box and then put the Maximum that you are willing to pay for a home in the Price Box and hit SEARCH. This is a very good site because it is FREE for anyone to place a listing.
Now it is time to go to the local penny newspapers like the Nickel Ads
( http://www.nickelads.com ) Click on Real Estate: Sale, scroll down to Sub Categories and high light Manu., Mobile Homes and hit SEARCH. This is a good site because it is not that expensive for the average JO to list his mobile home for sale.
Now it is time do a search for you Local Community Newspapers. In your search engine type in News Papers and the name of YOUR TOWN and hit search. Example: if I typed in Newspapers Camas Washington into a search engine I will get Camas Washougal Post Record. Once you find the news papers that are in your area just click on the link to the Newspaper, click on Real Estate For Sale, go to the sub categories and click on mobile home or manufactured home listings and you will see what mobile homes are for sale in that publication. If you live close to a major metropolitan area don’t forget to look at the classified section of the major newspapers like the Oregonian in Portland and the Seattle Times in Seattle. These big news papers over lap a lot of smaller towns and communities.
If you still have not found a manufactured home that meets your need it is time to get into your car and start driving to the Manufactured Home Communities. You can get a list of all of the manufactured home communities in Oregon by clicking on (http://o.hcs.state.or.us/MDPCRParks/ParkDirQuery.jsp ) then start you search. For a list of Parks in Washington State click here: (http://www.mobilehome.net/communities/wa/index.htm ). I am not sure how good the Washington State list is. The yellow pages are also a good place to find listing of the mobile home parks in your city.
Now that you have found a list of the manufactured home parks in your area you might want to start off by calling the Park Manages and ask them if they know of any one in their community that would like to sell their manufactured home. Park Managers can be one of your very best resources. Next I would get into my car and start driving around in the manufactured home communities that are in your area. Make a list of all of the For Sale Homes in the Park that you would like to get some info on. If the park manager is available stop and say hi and let them know what you are looking for. They usually know of people that would like to sell but have not bothered to put up a sigh. Make sure to write the name of the park down when you drive in and put your For Sale list under the Parks name otherwise you will loose all track of where you saw that home. When I went through parks I would carry my digital camera and take a picture of the sign that has the parks name on it and a picture of the homes that I was interested in.
Next weeks article will be " What to do after you have found a Manufactured home that you are interested in".
Please let me know if this was help full information and feel free to leave questions or comments.
Ron Hopkins
Thursday, October 18, 2007
Monday, October 1, 2007
Friday, September 7, 2007
if Mobile / Manufactured Home Finance: What if you had to File for Bankruptcy in the last 3 years?
I have had to tell people that do have very good credit scores that because their bankruptcy has not been discharged long enough there is no way for me to get them qualified for a manufactured home loan. Depending on the loan most banks want to see that your bankruptcy has been discharged for at least 3 full years and some as long as 5 years. Most banks will also want to see that the borrower has re-established at least two years of stable credit use from the time that the bankruptcy was discharged.
If you are either purchasing or refinancing a Manufactured Homes on Leased Land or in Parks most lenders will require that the Bankruptcy has been discharged for at least 4 years and the borrower will need to have re-established at least two years of stable credit use from the time that the bankruptcy was discharged
For Manufactured Homes that are on their Own Land the general rule of thumb is that the bankruptcy will need to be discharged for 3 full years from the date that the bankruptcy was discharged before a borrower will qualify for either a purchase loan or a refinance loan.
Please note that these are just general rules of thumb. Each borrower will have a different situation and may still qualify for financing even if their bankruptcy has not been discharged for very long.
The one product that is available for Manufactured home financing even if your bankruptcy is only 1 day old is a Reverse Mortgage. With a Reverse Mortgage the lender does not care about your income or your credit they are mainly looking at your age and the equity that you have in your home. Please see the other article that I posted to learn more about Reverse Mortgages
Know what is on your credit report after your Bankruptcy has been discharged.
Under the FACT Act amendments to the Fair Credit Reporting Act you are entitled to one free copy of your credit report per calendar year. To request this free annual disclosure you may contact the Central Source on-line at www.annualcreditreport.com. You can also contact the Central Source to request this free annual disclosure by calling toll free (877) FACTACT or by using the mail request form available at the central source website by clicking the following link www.annualcreditreport.com.
Start to re-establish your credit as soon as possible after the Bankruptcy has been discharged.
If you have had a Bankruptcy in the past, it is critical that you start to re-establish credit as soon as possible. Lenders will want to see that after the bankruptcy was discharged that you have been able to use credit in a responsible way. The only way to re-establish your credit is to borrow money and pay it back on a timely basis.
When you get a loan and or credit you will want to make sure that it will show up on your credit report. Examples of credit / loans that will show up on your credit report are credit cards and loans from banks and credit unions. Examples of loans that will not show up on your credit report are loans from family, friends and private party loans.
Another good tool that can help you start to rebuild your credit is to get a Secured Credit Card. With a secured credit card you will need to deposit a lump sum of cash into an account. The lump sum of cash will be the banks guarantees that you will pay your debt, if you don’t they will simple take the money out of you account to pay your bill. You may want to talk to your local bank or credit union to see if they offer secured credit cards if they do not you can go to http://www.Bankrate.com and click on credit cards.
For more good information on improving your credit score you can go to http://www.myfico.com. Scroll to the bottom of the web page and go to where is says “Credit Education Documents
If you would like to talk to a real live person that has no interest in making money from you and truly would like to help you to become a homeowner you may want to contact the HOME OWNERSHIP CENTER. The Home Owner Ship center is a HUD Certified Non- Profit Organization. Their Mission is to ASSIST ANYONE in ACHIEVING SUCCESS in HOME OWNERSHIP. You can contact them by calling Toll Free 1-877-690-4496 or go to http://www.homecen.org.
Please feel free to add to this blog, ask a question or leave a comment.
Thank you,
Ron Hopkins
If you are either purchasing or refinancing a Manufactured Homes on Leased Land or in Parks most lenders will require that the Bankruptcy has been discharged for at least 4 years and the borrower will need to have re-established at least two years of stable credit use from the time that the bankruptcy was discharged
For Manufactured Homes that are on their Own Land the general rule of thumb is that the bankruptcy will need to be discharged for 3 full years from the date that the bankruptcy was discharged before a borrower will qualify for either a purchase loan or a refinance loan.
Please note that these are just general rules of thumb. Each borrower will have a different situation and may still qualify for financing even if their bankruptcy has not been discharged for very long.
The one product that is available for Manufactured home financing even if your bankruptcy is only 1 day old is a Reverse Mortgage. With a Reverse Mortgage the lender does not care about your income or your credit they are mainly looking at your age and the equity that you have in your home. Please see the other article that I posted to learn more about Reverse Mortgages
Know what is on your credit report after your Bankruptcy has been discharged.
Under the FACT Act amendments to the Fair Credit Reporting Act you are entitled to one free copy of your credit report per calendar year. To request this free annual disclosure you may contact the Central Source on-line at www.annualcreditreport.com. You can also contact the Central Source to request this free annual disclosure by calling toll free (877) FACTACT or by using the mail request form available at the central source website by clicking the following link www.annualcreditreport.com.
Start to re-establish your credit as soon as possible after the Bankruptcy has been discharged.
If you have had a Bankruptcy in the past, it is critical that you start to re-establish credit as soon as possible. Lenders will want to see that after the bankruptcy was discharged that you have been able to use credit in a responsible way. The only way to re-establish your credit is to borrow money and pay it back on a timely basis.
When you get a loan and or credit you will want to make sure that it will show up on your credit report. Examples of credit / loans that will show up on your credit report are credit cards and loans from banks and credit unions. Examples of loans that will not show up on your credit report are loans from family, friends and private party loans.
Another good tool that can help you start to rebuild your credit is to get a Secured Credit Card. With a secured credit card you will need to deposit a lump sum of cash into an account. The lump sum of cash will be the banks guarantees that you will pay your debt, if you don’t they will simple take the money out of you account to pay your bill. You may want to talk to your local bank or credit union to see if they offer secured credit cards if they do not you can go to http://www.Bankrate.com and click on credit cards.
For more good information on improving your credit score you can go to http://www.myfico.com. Scroll to the bottom of the web page and go to where is says “Credit Education Documents
If you would like to talk to a real live person that has no interest in making money from you and truly would like to help you to become a homeowner you may want to contact the HOME OWNERSHIP CENTER. The Home Owner Ship center is a HUD Certified Non- Profit Organization. Their Mission is to ASSIST ANYONE in ACHIEVING SUCCESS in HOME OWNERSHIP. You can contact them by calling Toll Free 1-877-690-4496 or go to http://www.homecen.org.
Please feel free to add to this blog, ask a question or leave a comment.
Thank you,
Ron Hopkins
Friday, August 31, 2007
Mobile / Manufactured Home Finance: “HELP WITH CREDIT ISSUES”
Here is a good site to go to in order to understand what needs to be done to increase your credit scores. http://www.myfico.com/CreditEducation/?fire=1
Scroll to the bottom the bottom of the web page and go to the area that says "More Information About...” This is all free information that will help you to better understand your credit and how to improve it. If you are going to be looking for a loan sometime soon I would suggest that you purchase a copy of your credit reports from this site and review it. When you purchase a copy of your credit report from MYFICO it will have your credit scores on it and because you pulled it, you will not need to worry about your credit scores going down. You want to avoid letting lots of people pull you credit report. Every time someone other than yourself pulls your credit your credit score may go down.
If you would just like to look at your credit report and do not need your credit scores the following is a good option.
As a consumer you are able to get 1 Free copy of your credit report per calendar year from each 1 of the 3 credit reporting agencies. To get a free copy of your credit report click on the link below. If it ask for $$$ you are in the wrong spot.
https://www.annualcreditreport.com/cra/index.jsp
Once you have received copies of all 3 of your credit reports go through them with a highlighter pen and mark everything that is reporting incorrectly. Follow the instructions at the end of the credit report if you find things that are incorrect.
Please stay in touch and let me know how things are going and if I can be of help.
Ron Hopkins
5501 NE 109th Court, Suite L
Vancouver, WA 98662
Phone: 360-567-2596
Fax: 360-838-6578
Email: ronh@lsfloans.com
Scroll to the bottom the bottom of the web page and go to the area that says "More Information About...” This is all free information that will help you to better understand your credit and how to improve it. If you are going to be looking for a loan sometime soon I would suggest that you purchase a copy of your credit reports from this site and review it. When you purchase a copy of your credit report from MYFICO it will have your credit scores on it and because you pulled it, you will not need to worry about your credit scores going down. You want to avoid letting lots of people pull you credit report. Every time someone other than yourself pulls your credit your credit score may go down.
If you would just like to look at your credit report and do not need your credit scores the following is a good option.
As a consumer you are able to get 1 Free copy of your credit report per calendar year from each 1 of the 3 credit reporting agencies. To get a free copy of your credit report click on the link below. If it ask for $$$ you are in the wrong spot.
https://www.annualcreditreport.com/cra/index.jsp
Once you have received copies of all 3 of your credit reports go through them with a highlighter pen and mark everything that is reporting incorrectly. Follow the instructions at the end of the credit report if you find things that are incorrect.
Please stay in touch and let me know how things are going and if I can be of help.
Ron Hopkins
5501 NE 109th Court, Suite L
Vancouver, WA 98662
Phone: 360-567-2596
Fax: 360-838-6578
Email: ronh@lsfloans.com
Subscribe to:
Posts (Atom)