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USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income in Florida, Alabama, Tennessee, and Texas USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income

Making the most out of the updated USDA income guidelines requires the proper calculation of all available income!

However, because everyone is not paid the same, it is also important to understand the most recent and updated qualifying guidelines used for calculating USDA Eligibility for Overtime, Bonus, and Commission Income.

In today’s video, I’ll show you how to make the most out of your USDA loan qualification by reviewing the improved and increased flexibility provided for these types of income sources.

Plus, if you are ready to take the next step towards learning the USDA qualifying process, download our  USDA Blueprint for Success FREE report which is designed to give you an overview of the USDA Home Loan process, eligibility requirements, and much more. Download it now!

USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income

1. 2024 USDA Income Eligibility Guidelines

As a quick review, USDA guidelines group income into two categories:

  1. Annual income is used when calculating eligibility for 2024-2025 USDA Income Limits.
  2. Repayment income is used to calculate debt ratios and the USDA maximum loan amount.

As for the income that can be used for determining your loan qualification, USDA provides qualifying flexibility for the follSebring, Avon Park, Lake Placid, Okeechobee USDA Loansowing:

  • Overtime
  • Bonuses
  • Commissions

The good news is that these requirements have recently changed and are now greatly improved!

2. USDA Eligibility for Overtime, Bonus, and Commission Income

USDA previously required a two-year history for income that was earned from overtime, bonuses, and commissions.

However, updated USDA guidelines now only require a one-year history for us to count this income towards your USDA qualifying sales price!

While it is ideal that these types of earnings are from the same place of employment, this is not required either.

Additionally, while the continuance of this type of income will be presumed unless there is documented evidence that the income will cease, USDA guidelines will require that:

Underwriters must analyze overtime for the current pay period and YTD earnings. Significant variances (increase or decrease) of 20 percent or greater in income from the previous 12 months must be analyzed and documented before considering the income stable and dependable.”

3. How are USDA income eligibility requirements calculated?

USDA Income Guidelines: 2024 USDA Eligibility for Overtime, Bonus, and Commission Income in Florida, Alabama, Tennessee, and Texas

Most of all, don’t be caught up in calculation confusion!  Let our USDA expertise, efficiency, and program knowledge work for you!

In fact, my team and I are built to help walk homebuyers through the USDA process step by step.

Remember, to just call, text, or email to discuss your scenario so we can show you the “Metroplex” difference!

Call/Text: 863-593-2001
(800) 806-9836 Ext 280
SeanS@MPLX.org 

P.S. Remember to download our  USDA Blueprint for Success FREE report which is designed to give you an overview of the USDA Home Loan process, eligibility requirements, and much more!

 

USDA Income Guidelines: 2024 USDA Debt to Income Ratios are Increasing throughout Florida, Texas, Tennessee, and Alabama!USDA Income Guidelines: 2024 USDA Debt to Income Ratios are Increasing throughout Florida, Texas, Tennessee, and Alabama!

I have breaking news to report regarding increased qualifying ability under the USDA Program! USDA’s recent announcement will have the immediate impact of increasing both the sales price range and maximum USDA Loan amount that our rural homebuyers can qualify for.

As the housing market continues to change, qualifying budgets are what homebuyers are laser focused on along with a wider range of USDA eligible property types to search for.  In today’s short video, I will explain USDA Debt to Income Ratios and provide examples of how we will receive increased qualifying flexibility.

And if you have not yet done so, remember to download our newest USDA Blueprint for Success with the link below.  This free guide is designed to walk you through the USDA process step-by-step and is a great educational resource for the real estate community.

USDA Income Guidelines: 2024 USDA Debt to Income Ratios are Increasing!

USDA debt-to-income ratios (debt ratios) are calculated in two ways, the housing ratio and your total debt ratios.

The housing portion of your debt ratios includes monthly amounts for items such as your principal and interest, taxes, insurance, and other costs such as association fees (this is commonly referred to as your PITI payment).  We will take the PITI payment and then divide that by your total monthly gross income used for qualifying (repayment income).USDA Income Guidelines: 2024 USDA Debt to Income Ratios are Increasing throughout Florida, Texas, Tennessee, and Alabama!

Additionally, your total debt ratio consists of that housing expense plus other monthly debt such as any auto loans, credit cards, and student loan payments, which is then also divided by the monthly gross income.

Although some exceptions do exist, USDA published guidelines currently permit 29% of your monthly income to be allowed for a total housing expense.

For example, if there is $6,500 in monthly gross income, 29% of that is $1,885 which would be the number that your monthly principal and interest, taxes, insurance, and any association fees would have to equal.

Ex. $6,500 X 29% = $1,885.00

However, USDA just announced on June 25, 2024 that USDA Debt to Income Ratios are increasing from 29% all the way up to 34% of your gross monthly income! This is big news for your USDA qualifying loan amount and overall eligibility for a wider variety of homes and sales prices! This increase is expected to be implemented on August 5, 2024.Sebring Florida USDA Loans. Okeechobee FL USDA Loans. Tampa FL USDA loans.

Using the above example, this would automatically be able to increase your monthly payment to $2,210!

Ex. $6,500 X 34% = $2,210.00

While this was only a brief summary of USDA Debt to Income Ratios, remember that this new guideline update will greatly increase your qualifying budget and allow for more flexibility in the properties you look at.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!

Toll Free: 800-806-9836 x280
Call/Text: 863-593-2001
SeanS@MPLX.org

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

USDA Income Guidelines: What are USDA Income Eligibility Requirements in Florida, Texas, Tennessee, and Alabama?USDA Income Guidelines: What are USDA Income Eligibility Requirements in Florida, Texas, Tennessee, and Alabama?

By understanding USDA income eligibility requirements, you can better prepare for the USDA loan application process. In today’s short video, I will break down the guidelines and walk you through the USDA qualifying process.

However, before we get started please take advantage of our free Second Opinion ServiceSOS”. This free service is designed for both new pre-qualifications and those loans that are already in progress. Remember to just call, text, or email to discuss your scenario so we can go to work for you!

Call/Text: 863-593-2001
SeanS@MPLX.org

 

USDA Income Guidelines: What are USDA Income Eligibility Requirements?

Understanding USDA income eligibility requirements are key for both homebuyers and Realtors because it establishes USDA eligibility, your qualifying sales price, and overall budget when looking at homes. A proper qualification is critical to a successful loan closing.

Now, let’s breakdown and review the USDA income guidelines for determining all of the income within the household, which is referred to as USDA Annual Income, and also the qualifying income for those individuals who are just on the loan ,which is known as USDA Repayment Income.

USDA ANNUAL INCOME [7 CFR 3555.152(b)]

USDA guidelines state that:

Annual income includes all eligible income sources from all adult household members, not just parties to the loan note. The annual income for the household will be used to calculate the adjusted annual household income. The adjusted annual income determines if the household is eligible for a guaranteed loan.”

Remember that USDA income guidelines require calculation of all the income in the household when determining if a household’s income is within the published USDA income limits.

USDA Income Limits in Florida, Texas, Tennessee, & Alabama

Calculation of Annual Income

When calculating USDA Annual Income, guidelines additionally confirm that:

Annual income is calculated for the ensuing 12 months, based on income verifications, documentation, and household composition. Lenders must examine all evidence to ensure the calculation is supported.”

USDA REPAYMENT INCOME [7 CFR 3555.152(a)]

Now, for those individuals who are actually on the USDA Loan Application, separate calculations are required to determine their qualifying sales price, loan amount, and overall budget. USDA guidelines state that:

“Repayment income will determine if applicants have sufficient income to repay the mortgage in addition to recurring debts. Repayment income calculations often differ from the calculation of annual and adjusted annual income.”

“Repayment income is the stable and dependable income of the applicants who will be parties to the note. Co-signers and non-occupant co-borrowers are not permitted for a guaranteed loan transaction.”

As a USDA approved lender, we are responsible for the underwriting decision and calculation of income which requires documentation such as:Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida. Sebring and Tampa FL USDA Approved Lender.

  • Historical receipt of earnings;
  • The likelihood of its future continuance; and
  • Analyzing any gaps in employment when determining stable and dependable income.

USDA Income Guidelines – Summary

As you can see, upfront expert analysis is critical when determining if the total household income is within USDA income limits and if b their USDA repayment income will support the USDA sales price and loan amount.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!

Call/Text: 863-593-2001
800-806-9836 Ext. 280
SeanS@MPLX.org

Thank you again for forwarding and sharing today’s video with any friends, family, co-workers, or clients who are looking to buy, sell, or refinance!

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

2023 and 2024 Florida USDA #1 Ranked Lender!

Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida – Again!

Metroplex Mortgage Services is the #1 ranked Florida USDA Lender in 2024 – Again!

USDA Rural Development recently announced their USDA Lender Rankings and we are proud to announce that Metroplex Mortgage Services has once again been named the #1 Ranked USDA Lender in Florida!

We were thrilled to have been the #1 USDA Lender in Florida for 2023, but deeply honored to have once again been ranked the #1 USDA Lender in Florida for 2024! It is truly a privilege to help secure homeownership in our rural communities and we are grateful to work alongside our valued clients and realtors each step of the way.

This ranking means that Metroplex Mortgage Services has closed the most USDA loans in Florida out of all USDA approved lenders. The USDA Approved Lender list includes credit unions, banks, and all nationwide and local lenders.Metroplex Mortgage Services #1 USDA Approved Lender Tampa Florida

We are incredibly proud of our team’s dedication and commitment to excellence, which has once again secured our position as the top USDA lender in Florida. We extend our heartfelt thanks to our valued clients and Realtors for their trust and support, as well as to our exceptional staff whose hard work made this achievement possible.

In today’s short video, I will explain why a USDA Approved Lender is so critical towards maximizing the USDA loan program and being that source both homebuyers and Realtors can count on!

Now as we all know, Second Opinions are always important – especially with the USDA loan program! If you have financing questions or you are working with another lender, we offer a complimentary service where you can get access to an expert second opinion. Just call, text, or email to review your scenario and let us show you the “Metroplex” difference!

800-806-9836 Ext. 280
Call/Text: 863-593-2001
SeanS@MPLX.org

Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida – Back to Back!

We take great pride in our USDA expertise, but also in keeping service at the forefront and not letting our customers be just another number.

So, when going through the USDA loan process what should you look out for?

Remember, USDA loans are very unique, and having an experienced USDA approved lender is critical to success.

First off, is your lender actually approved by USDA?Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida. Sebring and Tampa FL USDA Approved Lender.

While many banks, credit unions, brokers, and lenders may offer the program – very few have dedicated resources set aside specifically for processing, underwriting, and approving USDA Rural Home Loans.

Remember that USDA Approved Lenders are granted the authority to underwrite and issue loan approvals. This “In-House” underwriting ability allows for one dedicated point of contact from initial qualification through loan closing.

With that being said, if they are not USDA approved, then they will have to submit through an actual approved USDA Lender for underwriting, approval, and in order to work with the USDA field offices. 

Obviously, this just creates additional steps needing more time and as the old saying goes “Too many cooks in the kitchen!”.

Secondly, as a USDA Approved Lender, Metroplex is known for our specific USDA loan expertise!

Due to this experience, we are able to maximize the program’s full potential and give our buyers the local competitive advantage they need in today’s market through:

  • Detailed USDA Income and Credit Analysis
  • Thorough understanding of the guidelines
  • In-House Underwriting and Processing Efficiency
  • Both Manual and Automated Loan Approval Options
  • Home Repair Financing for items to be completed after closing!
  • USDA Qualification Letters that Homebuyers, Realtors, and Sellers can count on!

Last but not least, by working with an actual USDA approved lender, you can have one point of contact responsible for:

  • The upfront initial USDA Qualification Process
  • Expediting conditions so the file can be shipped to USDA2023 #1 Ranked Florida USDA Approved Lender
  • Direct communication with USDA field offices for handling of the USDA commitment
  • Ability to provide specific updates on status, without having to call an outside lender for updates

In summary, it is good practice to ask if your current lender is actually USDA approved and how many USDA loans your loan officer has actually closed.  These two questions can at least shed some light into how experienced they may be before you get tangled into a web with an unfortunate outcome. 

Now before I go, I just want to thank everyone for helping Metroplex Mortgage Services be the #1 ranked Florida USDA Approved Lender!

We appreciate the continued referrals and trusting us with all of your mortgage needs. Whether it be FHA, USDA, VA, or Conventional Loans –  Just call , text, or email to discuss your scenario and let us show you the “Metroplex” difference!

800-806-9836 Ext. 280
Call/Text: 863-593-2001
SeanS@MPLX.org

I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

2024 #1 Ranked Florida USDA Approved Lender

2023 #1 Ranked Florida USDA Approved Lender

2017 #1 Ranked Florida USDA Approved Lender

USDA Loans and Employment: Can You Qualify for a Mortgage Before Starting a New Job in Florida, Texas, Tennessee, and Alabama?

For example, can a teacher qualify for a USDA home loan if they are changing school districts? Can they close on a home before the school year begins?USDA Loans and Employment: Can You Qualify for a Mortgage Before Starting a New Job?

In today’s video, I will focus on the topic of USDA loans and employment with a deep dive into how teachers and other professions can qualify for a USDA home loan. This type of qualification can occur after an employment contract has been signed, but before their new job has even started!

Also, if you have not yet done so, feel free to download our newest “USDA Blueprint” with the link below. This free guide is designed to help walk you through the USDA process step-by-step and is a great educational resource for both homebuyers and their Realtors alike.

USDA Loans and Employment: Can You Qualify for a Mortgage Before Starting a New Job?

Accepting an offer to start a new position is an exciting moment. However, it can also be stressful, especially if you are required to move to a new city, purchase a home, and prepare for the first day of work all at the same time!Sebring FL Highlands County USDA Loans

Fortunately, at Metroplex Mortgage Services, we regularly encounter these situations and can confirm that USDA guidelines offer flexibility for certain professions where employment is accompanied by a signed offer letter or employment contract, among other qualifications discussed later in this article.

A example of this situation would be a teacher changing school districts where we are able to document both current and previous employment along with documenting continuity in the same profession.

USDA Loans and Employment: Qualify for a USDA Loan Before Your New Job Begins!

In situations where an applicant is a teacher changing school districts or when an individual is moving to a new employer, USDA guidelines permit the use of a signed offer letter or employment contract in place of current pay stubs as long as it meets the following conditions:Sebring FL Highlands County USDA Loans

  • The employment contract or offer letter must detail terms of the employment and income
  • Employment must begin within 60 days of the loan closing.

In addition to the employment contract or offer letter, the below conditions must also be met:

  • The applicant must have at least one year of previous employment history. Previous employment can span across multiple employers but must be verifiable.
  • The underwriter must determine that the applicant has reserves available after loan closing to cover all monthly liability payments and the new mortgage obligation until employment begins.

Additionally, we will want to review to determine that any contingencies have been cleared.

USDA Loans and Employment – Summary

It is common for us to receive questions regarding USDA home loans for teachers in all areas where USDA home loans are eligible, including Florida, Texas, Tennessee, and Alabama.

Provided certain requirements are met, it can be possible for a teachers changing school districts to qualify for a USDA home loan, even before their first paystub is received.

The USDA home loan program is very powerful, and ensuring that you are working with a true USDA Approved lender with a proven track record of success will help you maximize the benefits of this program and alleviate the stress of changing employers while trying to purchase a home.

As a USDA Approved lender, we are here to help. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Call/Text: 863-593-2001
Toll Free: 800-806-9836 x 280

Email: SeanS@MPLX.org

What are Five Things “To Do” for a Successful USDA Mortgage Application in Florida?What are Five Things “To Do” for a Successful USDA Mortgage Loan Approval in Florida, Texas, Tennessee, or Alabama?

Submitting your USDA mortgage application, looking for the right home, and preparing an offer are all part of purchasing a home.

However, because of the overwhelming amount of information, it is important to not let important financing details slip through the cracks. Understanding what are the right and wrong things “to do” during the USDA mortgage application process can go a long way!

In today’s short video tip, I will discuss five important things “TO DO” in order to keep your USDA Mortgage Loan Approval headed in the right direction.  Additionally, you can always use these FREE USDA Resources to help each step of the way!

5 Things “To Do” for USDA Mortgage Loan Approval

1. Keep your payments on-time!

As you can imagine, late payments on your credit report can have a major negative impact on your credit scores which in turn can hurt your USDA mortgage application process.  We realize life that an oversight can happen and while it may not be intentional, understand that the impact will be the same.

It is critical to stay organized with your finances because just one 30-day late payment can stop the loan process in its tracks.

How to apply for a USDA mortgage loan in Florida, Texas, Tennessee, or Alabama2. Manage your credit card balances

It is very important to monitor and keep your credit card balances low in comparison to your credit card limit. In fact, it isn’t the balance that counts, but the ratio of your balance when compared to your credit limit.

Having credit cards that are maxed out or near their limit can be a major contributing factor in lowering your credit score.

Remember, it is also equally important to not close out credit cards account!  Once you pay off and close out an account, you are also eliminating the available credit that comes along with having a low balance.

3. Don’t let medical collections become an issue!

Often, I see a small medical collection that was a result of miscommunication between the insurance company, doctor’s office, and the patient. This can rapidly decrease your credit scores and in some cases can be a reason for loan denial.

After you have a medical procedure, it is important to stay on top of the billing and any potential invoices that may be outstanding.

Tampa FL USDA Mortgage Application in Florida4. USDA Verification of Rental History

When rental history is required, paying by check is a clear way to verify your payment history. While paying by cash or money order may seem convenient, it will not always be an acceptable form of verification by underwriting.

Also, you have pay to a management company or an apartment complex, these are both considered institutional sources where we can obtain your verification of rent (VOR) from.

Here is a short video which further explains USDA verification of rent requirements.

5. Don’t be afraid to ask questions!

As an approved USDA mortgage lender, we are your best resource for details about what actions can help or hinder your loan approval.

If you have any questions or concerns about a financial event you are considering during the loan process, please let us know prior to taking action.

We are here to help you navigate the USDA mortgage application process and make it as smooth as possible. In fact, we have created several free USDA resources to help you along the way. Plus, you can always call or email to discuss your scenario and let us show you the Metroplex difference!

800-806-9836 Ext. 280
Call/Text: 863-593-2001

SeanS@MPLX.org

P.S. -You can download our “USDA Condo Approval Checklist” by CLICKING HERE

Free Report

While  Memorial Day often evokes thoughts of cookouts and great sales, it is important to reflect on, and respect all those who have lost their lives in service to our country. Falling on the last Monday of every May, Memorial Day became a Federal Holiday in 1971 and is celebrated by loved ones and families that visit graves, memorials, or simply remember those they have lost.Memorial Day A Time to Remember

Here are some facts about Memorial day you may not know about (courtesy of History.com):

  • It was originally known as Decoration Day
  • It is believed to have started in towns during the Civil War, their residents decorating graves with flowers and reciting prayers
  • It is often regarded as marking the beginning of summer
  • There is a national moment of silence every Memorial Day at 3:00PM local time
  • Many Southern states honored their dead on separate days from the rest of the country until after WWITampa FL #1 Ranked USDA Approved Lender

Even though the Civil War saw more American casualties than any other U.S. conflict, people gather every year to honor not only their fallen, but opposition as well, a tradition that has continued since the late 1800’s.

 

We want to thank those who have paid the ultimate sacrifice for our nation as we remember you on Memorial Day!

 

Florida, Texas, Tennessee, and Alabama VA Approved Lender

How does a pastor qualify to purchase a home with a USDA loan in Florida, Texas, Tennessee, or Alabama?How does a minister or pastor qualify for a USDA loan in FL, TX, TN, AL

How do you qualify for a USDA loan with pastor, clergy, or ministry income?

Can housing or parsonage income be considered for USDA loan qualifying?

These are both great questions which seem to generate much confusion, and in today’s video we will break down the details and explain how to calculate pastor, clergy, or ministry income for USDA loan qualifying.

Remember, if you need help or have a question that is what we are here for, so just call or email to discuss your scenario because we are known for returning calls, replying to emails, and responding to your messages. Now, wouldn’t it be nice if everyone did that!

How do pastors, clergy, or ministers qualify for a USDA loan?

BackgroundHow does a pastor qualify to purchase a home USDA loan in Florida, Texas, Tennessee, or Alabama?

As a starting point, the IRS provides for the following: “A minister’s housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.”  (Click here to view the entire IRS FAQ)

Do USDA guidelines allow you to include housing or parsonage allowances for pastor, clergy, or minister loan qualifying? 

USDA Guidelines state the following under Housing or Parsonage Allowance:

For annual income, which is the amount calculated when determining total USDA household income, guidelines require approving lenders to “include the amounts that will be received in the ensuing 12 months.”

For repayment income, which is the amount of income calculated to “determine if applicants have sufficient income to repay the mortgage in addition to recurring debts”,  it requires at least a one year history of the housing or parsonage allowance receipt.”

Additionally, the “full amount of the allowance may be included” but we are unable to “offset the mortgage payment with the amount of the allowance.”

USDA Guidelines further confirm that housing or parsonage allowance “will be presumed to continue unless there is documented evidence the income will cease.”

Tampa FL USDA Approved Lender

This is also consistent with Fannie Mae guidelines that do specifically reference income for pastors, clergy, or ministers as follows: “Housing or Parsonage Income may be considered qualifying income if there is documentation that the income has been received for the most recent 12 months and the allowance is likely to continue for the next three years. The housing allowance may be added to income but may not be used to offset the monthly housing payment.”

USDA Loan Qualifying Documentation Requirements for Pastors

Now that we have a better understanding, what could be required for documentation?

Parsonage, housing, or honorarium income may be documented by reporting it on filed tax returnSebring FL USDA Loanss for qualifying income, but it may not be recognized solely through a verification of employment.

However, if the parsonage or honorarium income is not reported on the filed returns, but is reflected in box 14 of the W2 or box 3 of the 1099, the income can be used for qualifying purposes

Summary – Pastor Home Loan Qualifying

In summary, it is possible to qualify for a USDA loan with pastor, clergy, or ministry income, but having an experienced lender combined with the proper documentation is critical to success.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference.

Call/Text: (863) 593-2001
(800) 806-9836 X 280

SeanS@MPLX.org

Remember to take the process step-by-step and not to get overwhelmed, because we are here to help review and advise properly.

We want to thank everyone for the continued referrals and trusting us for all of your mortgage needs.

Let’s make it a great day, and I look forward to seeing you right here for the next tip of the week!

USDA Mortgage Loan Payment calculator for Florida, Texas, Tennessee, and AlabamaUSDA Mortgage Loan Payment Calculator. How do you accurately estimate a USDA mortgage loan payment? Unfortunately, many USDA mortgage calculators are not been designed to handle USDA specifics which can spell trouble when trying to determine your monthly budget. Thankfully, today’s video reviews exactly what should be calculated in a USDA mortgage loan payment.

Plus, you can use our USDA Mortgage Calculator anytime! The calculator is to the right if you are on desktop, or towards the bottom of the page on mobile.

Remember, if you need help or have a question, we are here to help. Just call, text, or email to discuss your scenario so we can show you the “Metroplex” difference!

Call/Text: (863) 593-2001
(800)806-9836 Ext 280
SeanS@MPLX.org

USDA Mortgage Loan Payment Calculator for Florida, Texas, Tennessee, and Alabama

When trying to stay within budget, accuracy is critical!  As a result, it is important to calculate a USDA mortgage loan payment properly because this allows you to stay within your price range while looking for homes.  Therefore, the following should be included:USDA Loan Payment Calculator for Florida, Texas, Tennessee, and Alabama

1. Property Taxes and Insurance

Property taxes and insurance are used to determine qualifying ratios and monthly housing expenses, but they can often be overlooked in calculations. If you are unsure about property tax estimates, it’s best to check with your local property tax collector. They can be a great resource to help with these questions.

2. Principal and Interest

The principal part of your payment goes towards paying down the loan balance. The interest is the cost paid for borrowing your loan.

Remember, interest rates change daily and multiple factors contribute to your interest rate calculation. Please give us a call if you have any specific rate and payment scenario questions.

3. USDA Guarantee Fee and USDA Monthly Premium

USDA home loans require 2 separate fees:

  1. 1% USDA Guarantee Fee:  This is a one-time charge of 1.00% that is financed into the final loan amount.
  2. USDA Monthly Premium 0f .35%: This is calculated every month as a part of your monthly payment.

USDA Mortgage Loan Payment calculator for Florida, Texas, Tennessee, and AlabamaUSDA Mortgage Loan Payment Calculator

Here’s how to use our USDA Mortgage Loan Payment Calculator:

  1. Type in your purchase price.
  2. USDA Guaranteed loan terms are for 30 years.
  3. Select your interest rate. Remember, that they do change daily.
  4. Input your estimated annual property taxes.
  5. Input your estimated annual homeowner’s insurance premium. Please note, property taxes and insurance will vary from property to property.
  6. Review your total estimated USDA monthly housing expense and make sure your payment is within budget!

Based on the numbers selected, our USDA Mortgage Loan Payment Calculator automatically factors both the USDA Guarantee Fee and the monthly premium into the housing expense estimate listed.

Please note: our USDA Mortgage Loan Payment Calculator is for estimating purposes only, minimum credit conditions will apply on all loans. This is not a Loan Estimate or a commitment to lend.

Give it a try, or feel free to forward it to anyone who may benefit! The calculator is to the right if you are on desktop, or towards the bottom of the page on mobile.

Learn what it means to have the strength and experience of a USDA Approved Lender working for your benefit. Just call, text, or email to discuss your scenario, and let us show you the “Metroplex” difference!

Call/Text: (863) 593-2001
(800)806-9836 Ext 280
SeanS@MPLX.org

P.S. Don’t forget to download Your USDA Blueprint for Success. This guide is complementary and designed to walk you through the USDA qualifying process step-by-step.

USDA Mortgage Loan Payment calculator for Florida, Texas, Tennessee, and Alabama

What are USDA Manufactured Home Loan Guidelines in Florida, Texas, Tennessee, and AlabamaUSDA Loans for Manufactured Homes Florida, Texas, Tennessee, Alabama

While it is true that the USDA Single Family Housing Guarantee Loan Program does not generally permit loans for existing manufactured homes, the USDA Existing Manufactured Home Pilot Program provides an exception to this rule in certain eligible states.

Today’s short video will break down the details of this unique feature and explain eligible states as well as qualifying parameters.

Remember, if you have not yet done so, make sure to download our “USDA New Construction Guide” with the link below.  This educational resource will walk you through the USDA new construction process and the USDA new construction loan requirements. It is designed for homebuyers, builders, and Realtors alike.

What are USDA Manufactured Home Loan Guidelines in Florida, Texas, Tennessee, and Alabama?

“According to 7 CFR 3550 and 3555, new manufactured homes are eligible for financing through the Section 502 Single Family Housing (SFH) Direct and Guaranteed Loan Programs. Existing manufactured homes are not eligible unless the home is already financed through Rural Development (RD) (7 CFR 3550.52(e)(l); 3550.73(b); 3555.208(b)(3)). Under the existing manufactured housing pilot, which was initially implemented on August 12, 2016, RD has waived the regulatory restrictions cited above and will finance existing manufactured homes in the pilot states even if the home is not currently financed by RD.”

Property Requirements – USDA Existing Manufactured Home Pilot Program

How does the USDA Existing Manufactured Home Pilot Program Work

There are several requirements that must be met in order to be eligible for financing under the pilot program. If all pilot conditions are met and the applicant is eligible, then the loan request can be filed. Existing manufactured homes and new units that have been on a dealer’s lot for more than 12 months must meet the following criteria:

  • The unit must have been constructed on or after January 1, 2006, in conformance with the Federal Manufactured Home Construction and Safety Standards (FMHCSS), as evidenced by an affixed Housing and Urban Development (HUD) Certification Label.
  • Inspection has been met using one of two of the below methods:
    • Form HUD-309, “HUD Manufactured Home Installation Certification and Verification Report” completed in accordance with 24 CFR 3286.511 by a qualified party as follows:
      • A manufactured home or residential building inspector employed by the local authority having jurisdiction over the site of the home, provided that the jurisdiction has a residential code enforcement program;
      • A professional engineer;
      • A registered architect;
      • A HUD-accepted Production Inspection Primary Inspection Agency (IPIA) or a Design Approval Primary Inspection Agency (DAPIA); or
      • An International Code Council (ICC) certified inspector.
  • Obtain a certification that the foundation design meets HUD Handbook 4930.3, “Permanent Foundations Guide for Manufactured Housing (PFGMH).” The foundation certification must be from a licensed professional engineer, or registered architect, who is licensed/registered in the state where the manufactured home is located and must attest to current guidelines of the PFGMH. The certification must be site specific and contain the engineer’s or registered architect’s signature, seal and/or state license/certification number. This certification can take the place of Form HUD 309.
  • The unit must not have had any alterations or modifications to it since construction in the factory, except for porches, decks or other structures which were built to engineered designs or were approved and inspected by local code officials.
  • Guaranteed loan applications must be manually underwritten.

Manufactured Home Pilot Program in Texas and TennesseeAdditional Property Criteria – USDA Existing Manufactured Home Pilot Program

Please note that the applicant and the property must still meet all additional criteria for guaranteed loans which include, but are not limited to, the following:

  • The unit must have a floor area of not less than 400 square feet;
  • The unit must meet the Comfort Heating and Cooling Certificate Uo Value Zone for the location;
  • The towing hitch and running gear must have been removed;
  • The manufactured home must be classified and taxed as real estate;
  • The remaining economic life of the property must meet or exceed the 30 year term of the proposed loan; and
  • The unit replacement cost coverage must be equal to the insured value of the improvements or the unpaid principal balance with deductible(s) of up to but not exceeding the greater of $1,000 or one percent (1 %) of the policy.

For greater details surrounding the requirements of the pilot program, visit USDA Dept. of Agriculture or contact our office directly with additional questions.

State Eligibility – USDA Existing Manufactured Home Pilot Program

What is USDA Existing Manufactured Home Pilot Program? USDA Approved lender in Texas, Tennessee, Florida and AlabamaMetroplex Mortgage Services, Inc. is a USDA Approved Lender licensed in Florida, Alabama, Tennessee and Texas. I have listed all of the pilot program eligible states below and because this list also includes Texas and Tennessee, we are able to help those potential applicants purchase existing manufactured homes in Texas and Tennessee under the USDA Existing Manufactured Home Pilot Program.

Eligible States include Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

 

As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you

Just call, email, or text to discuss your scenario and let us show you the “Metroplex” difference!

Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032
SeanS@MPLX.org

Don’t forget to download our USDA Blueprint for Success with this link.

USDA Blueprint for success

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