How do you automatically increase your mortgage qualification with a USDA Financing Debt Ratio Waiver in Florida, Texas, Tennessee, and Alabama?
Has a lender denied you because your USDA debt-to-income ratios are too high? What happens if your qualifying budget needs a little boost to purchase a home with USDA financing in Florida, Texas, Tennessee, or Alabama?
In these situations, a USDA Debt Ratio Waiver can help, and in today’s video, I’ll explain the factors needed in order to increase your USDA financing and qualifying ability.
And don’t forget, we are known for keeping Realtors and homebuyers updated through each step of the process from pre-qualification to closing along with one easy point of contact.
How can a USDA Debt Ratio Waiver increase your sales price?
As a starting point, your debt-to-income ratios (debt ratios) are calculated by dividing your new mortgage payment (housing expense) against your monthly gross income and also by dividing your total monthly debt payments by that same income.
Now, the housing portion of your debt ratios are referred to as your PITI payment and include monthly amounts for items such as your principal and interest, taxes, insurance, etc., while your total debt ratio consists of that housing expense plus additional monthly debt such as any auto loans, credit cards, or student loan payments.
Also, USDA published guidelines allow 29% for housing and 41% for your total expenses (29/41), but expanded ratios of up to 32% for housing and 44% for total (32/44) are available provided that:
The qualifying credit score of all applicant(s) is 680 or greater, and one of the following compensating factors is identified on a purchase transaction:
- Accumulated savings or reserves available post-closing which are equal to or greater than three months of PITI payments. Mortgage reserves are those funds that are available after closing and documentation options may include a verification of deposit (VOD), bank statements, 401K statement, or other eligible source. Remember that cash on hand is not eligible for consideration as a compensating factor.
- If all employed applicants have been continuously employed with their current primary employer for a minimum of 2 years.
- Applicants who have received Social Security benefits or retirement income for two years may utilize this compensating factor with supporting documentation.
- However, this does not apply for self-employed applicants.
Additionally, because Debt Ratio Waivers are applicable with manually underwritten loans, make sure your lender is able to work with USDA manual underwriting guidelines for those files that do not receive a GUS Accept.
In summary, don’t get pulled into the weeds on the details, just understand that by having at least a 680 score plus one of the factors we discussed today, this can provide for an immediate boost to your qualifying ability. Remember to make sure you are working with a USDA Approved Lender such as Metroplex Mortgage Services who truly understands how to maximize your USDA loan eligibility.
We realize USDA qualifying guidelines can be complicated, but that is where we step in to help. My team is built to help walk homebuyers through the USDA process step by step.
Just simply call or email to discuss your scenario, schedule a convenient callback time, or complete our 1-2-3 online pre-qualifier to get started.
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
Has A Loan Officer Told You That USDA Is Out Of Money?
Can the USDA Loan Program Actually Be Out of Money? If this is what you have been told, then this is exactly how rumors get started!
Each year around this time we receive calls asking if USDA is out of money and because there is so much misinformation about this subject, today’s short video will share the facts that you need to know and help set the record straight.
Also, don’t forget to download our USDA Blueprint for Success. This is a great educational resource for the real estate community and is designed for both homebuyers and their Realtors alike!
Have You Been Told That USDA Is Out Of Money?
As a staring point, the USDA Single Family Housing Guaranteed Loan Program fiscal year runs from October 1st until September 30th and at the beginning of each fiscal year, funding for the guaranteed loan program is not available for a short period of time –approximately two weeks. However, as many have been led to believe, this does not mean that that the USDA program is stopped in its tracks, but instead during this temporary lapse in funding, USDA Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions.
What is a USDA Conditional Commitment and why is it important?
The USDA Conditional Commitment is “Rural Development’s agreement that a proposed loan will be guaranteed if all conditions and requirements established by Rural Development are met.”
As a USDA Approved Lender we are responsible for underwriting and approving the loan application in accordance with agency guidelines and then submitting the loan package to USDA in order to receive their Conditional Commitment. This is a step that is taken prior to closing and demonstrates that the loan will be guaranteed by USDA provided all conditions and requirements are met.
USDA guidance provides for the following: “During the temporary lapse in funding, Rural Development – Rural Housing Service (RHS) will issue Conditional Commitments (Form RD 3555-18/18E) “subject to the availability of commitment authority” for purchase and refinance transactions.”
What this means it that USDA will continue to issue their USDA Conditional Commitments to approved lenders with the only difference being that they are “subject to the availability of commitment authority”.
What does this mean to homebuyers and Realtors?
I know, I know, but Sean, what does that really mean to us?
Quite simply, because USDA continues to issue those Conditional Commitments, this permits lenders to continue closing loans on time without interruption. Thus, depending on your lender’s experience and how they are set to do business during this brief time period, it will determine if they are able to continue processing and closing USDA loans without delay.
Just to confirm, if your lender is blaming USDA for a delayed closing, it is not an issue with USDA but instead the lender. If this is the case, it may be time to look for another USDA lender who is experienced and understands the process!
The good news is, that it is business as usual for Metroplex Mortgage Services and we continue to accept applications, process, close, and fund USDA loans without delay!
Here is an overview of what to expect at this time of the year:
- As a USDA Approved Lender, we will continue to submit applications for purchase and refinance loan transactions to USDA;
- USDA Rural Development will process, approve, and issue Conditional Commitments for those applications that are eligible “subject to the availability of commitment authority”;
- Upon receipt of the USDA conditional commitment, loans will continue to close as scheduled;
- At this point your loan has closed and Steps 5 and 6 below will happen directly between USDA and the USDA Approved lender after closing.
- Then, when funds become available, USDA Rural Development will obligate (reserve) funds for Conditional Commitments that were issued for loans subject to the availability of commitment authority; and
- Once these loans are obligated, USDA Rural Development may process lender’s Loan Note Guarantee requests when the loan closing is verified and all conditions of the Conditional Commitment are satisfied;
Schedule your FREE USDA Loan Consultation
Remember, 2nd opinions are always important (especially around this time of year), so if you have USDA financing questions or are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion which is great for both pre-qualifications and those loans that are already in progress.
As a USDA approved lender, Metroplex Mortgage Services has expertise with this unique program, and we are able to walk both homebuyers and Realtors through the process step by step! Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
(800)806-9836 Ext. 280
Make it a great day and I look forward to seeing you right here again for our next USDA video quick tip!
Don’t forget, here is the link to our USDA Blueprint for Success:
HAPPY LABOR DAY!
Wishing you a Safe and Happy Labor Day weekend from Metroplex Mortgage Services!
Did you know these Labor Day facts?
1. The first celebrated US Labor Day was on Tuesday, September 5, 1882 in New York City, planned by the Central Labor Union.
2. Oregon was the first state to celebrate Labor Day as a legal holiday in 1887.
3. Labor Day started as a part of the labor union movement, to recognize the contributions of men and women in the US workforce, but modernly is seen as a chance to celebrate the last weekend of summer.
4. The Adamson Act was passed on September 3, 1916 to establish an eight-hour work day.
Remember, if you are considering getting a USDA or VA Loan the Metroplex team is hear to help!
As an approved USDA and VA lender take advantage of our 100% financing government loan expertise! Metroplex Mortgage Services is known for our program expertise and having specific systems in place to process USDA home loans from pre-qualification to closing.
800-806-9836 Ext. 280
Just call, text, or email if you have any USDA or VA loan qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions.
I want everyone to make it a great Labor Day Weekend and look forward to seeing you right here for the next tip of the week!
Prior to Contract USDA Loan Qualification Service in Florida, Texas, Tennessee, or Alabama
As the housing market changes, we are seeing a surge in lenders committing what we call “mortgage malpractice“ through the loan qualifying mistakes that are being made which can leave doubt in both a seller and their listing agent alike.
My team at Metroplex is known for our dependability, reliability, and accuracy. As part of our service level commitment to the USDA loan process, we also offer a Prior To Contract qualification service (“PTC”) where we can dive deep into reviewing credit, income, and employment all before a homebuyer goes under contract!
In today’s short video, I will share the steps that we go through to ensure a proper qualification and provide key lender questions you should be asking to help determine if that qualification letter you received is actually worth the paper it is written on.
Now, if you have been denied for a loan or are experiencing financing issues, remember to take advantage of our free Second Opinion Service “SOS”. This valuable resource is designed to help homebuyers and Realtors gain access to an expert second opinion and is a great for tool for new qualifications as well as those loans that are already in progress.
Remember to just Call, Text, or Email to discuss your scenario and let us show you the “Metroplex” Difference!
863-593-2001 | SeanS@MPLX.org
We take pride in delivering the gold standard for qualification letters and knowing that Realtors and homebuyers continue to count on us for our dependability, reliability, and complete understanding of the USDA guidelines.
In today’s competitive market, our “PTC” qualification service allows for an in-depth review of a buyer’s credit, income, employment, and debt ratios prior to having a contract accepted.
Our PTC service is able to provide homebuyers with the local competitive advantage and provide Realtors with the certainty they need in today’s market due to the following benefits:
USDA Approved Lender. As a USDA Approved Lender we handle all of the upfront qualifying, loan processing, underwriting approval, and have direct communication with USDA from right within our office. This in-house control allows us to deliver a continuous loan process that is efficient, repeatable, and referable!
Homebuyer Out-Of-Pocket Expenses. Remember the saying, if you fail to plan, you plan to fail! This cannot be more true than in the upfront homebuyer education process. Too many lenders merely tell homebuyers that USDA loans allow for no-down payment without going into other out-of-pocket expenses such as deposits, appraisals, inspections, and closing costs.
We walk our clients through the process so they understand how much money is needed and when those funds will have to be available.
No Last-Minute Credit Surprises! Because credit is thoroughly reviewed and those scores are good for up to 120 days, this allows for time to shop and negotiate for the perfect home.
If further credit assistance may be needed, we also offer credit score expertise and advanced technology as an additional resource to our homebuyers.
By a thorough upfront credit review, this provides for additional time to process credit exceptions such as those with lower scores, previous short sales, foreclosure, or bankruptcies.
Employment and Income. By being able to verify employment, income, and establish their qualifying debt ratios, this provides a homebuyer with their all-important maximum qualifying price range.
As you can imagine, this is also an excellent tool for borrowers who have complex scenarios such as self-employment, complicated income analysis, and more!
Reduced Closing Times. Because of the upfront work and communication that has been done, this allows Metroplex to close USDA loans within 30 days! These reduced closing times help with sales contract negotiations since your offers are more competitive in today’s market.
Although we focused on USDA loans today, our Prior to Contract program is also available for Conventional, FHA, and VA loans which provide for shorter closing times as well!
As a top ranked USDA Approved Lender, let our program knowledge, work ethic, and experience go to work for you!
Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference!
Remember, we are known for following up, consistent communication, and closing on time!
Let’s make it a great day and I look forward to hearing from you soon!
What are USDA loan appliance requirements? Do USDA Loans Require a stove in Florida, Texas, Tennessee, or Alabama?
Do USDA or FHA appraisals require a stove or other appliances to be present in the property?
In today’s short video, I will share with you the details on USDA and FHA appliance requirements so you can be prepared for that next appraisal!
However, before we get started, don’t forget to take advantage and download our “USDA Blueprint for Success.” This free guide is designed to walk you through the USDA process step-by-step. Plus, it’s an excellent tool for both homebuyers and realtors alike.
What are USDA and FHA Appliance Requirements in Florida, Texas, Tennessee, or Alabama? Do USDA Loans Require a Stove?
As a starting point, USDA and FHA loans are both governed by minimum property requirements found in HUD Handbook 4000.1.
In turn, HUD Handbook provides the following definition for appliances:
“Appliances refer to refrigerators, ranges/ovens, dishwashers, disposals, microwaves, and washers/dryers.”
Further, the handbook also states that any appliances, from those listed above, “Are to remain and that contribute to the market value opinion must be operational.”
It also requires that the “Appraiser must note all appliances that remain and contribute to Market Value.”
Do USDA or FHA appraisals require a stove or other appliances to be present on the property?
In summary, despite what many think, stoves and other appliances are not required. However, for those appliances that do remain and contribute to market value, they must be operational!
For example, while you don’t necessarily have to have a stove, if there one there, it should be in working condition!
Remember, as a USDA approved lender, let our experience go to work for you! – Just call or email to discuss your scenario and let us show you the “Metroplex” difference.
800-806-9836 Ext. 280
I want everyone to make it a great day, and I 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.
Learn how to maximize the USDA Rural Development No Down Payment Loan program in Florida, Texas, Tennessee, and Alabama!
Realtors and homebuyers both know that the USDA loan eligibility plays a vital part in our rural areas. A buyer’s USDA loan eligibility can mean the difference between purchasing a home or sitting on the sideline. That’s why we’re excited to provide a direct access replay from our recent “USDA 1-2-3” webinar.
During the webinar, I reviewed USDA property eligibility, updated USDA income limits. and other USDA rural development loan requirements. This is a direct access free replay that does not require additional registration so don’t miss out on this valuable opportunity to enhance your knowledge of the USDA Rural Development No Down Payment loan program and gain a competitive edge in the real estate market.
I hope you find this presentation helpful, but please let our team know if you have any additional questions or if you would like to take advantage of our Free 2nd Opinion Service which is great for both new pre-qualifications and those loans that are currently in progress.
Toll Free: 800-806-9836 x280
Our USDA 1-2-3 webinar was designed to provide real estate professionals and homebuyers with a comprehensive understanding of the USDA home loan process, its benefits, and how it can be leveraged to realize the dream of owning a home. Whether you’re a realtor or a prospective homebuyer, this SEO-friendly article will equip you with the knowledge and tools necessary to navigate the world of USDA home loans effectively. The agenda for this online workshop included the following topics:
USDA Property Eligibility : To identify eligible properties, the USDA Rural Development uses specific criteria such as population size, development density, and geographical location. A crucial resource for prospective homebuyers and realtors is the USDA property eligibility map. These interactive maps help determine whether a specific address or location qualifies for USDA financing. By accessing these maps, you can quickly and easily check the eligibility status of a property before investing further time and effort. In the webinar, I will show you how to search for a USDA eligible property and further explain USDA minimum property requirements.
USDA Income Limit: One critical aspect of these programs is the USDA Rural Development Income Limits, which play a significant role in determining eligibility for USDA Home Loans. In this informative webinar, we will delve into the ins and outs of USDA Income Limits, the recent 2023 USDA Income Limit increases , and explain how USDA income limits are calculated in Florida, Texas, Tennessee, and Alabama.
USDA Home Loan Credit Score Requirements: USDA Rural Development loans are known for their credit qualifying flexibility and during this webinar workshop replay, we discuss USDA minimum credit score requirements. options for USDA loans with non-traditional credit, and other USDA minimum credit qualifying guidelines.
Q&A Topics: Review in-webinar question-and-answer topics as posed by other Realtors which provide you the opportunity to clarify any doubts and delve deeper into USDA Rural Development loan topics.
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.
Metroplex Mortgage Services is the #1 ranked USDA Lender in Florida!
USDA Rural Development recently announced their top lender rankings and we are proud to announce that Metroplex Mortgage Services has once again been named their top lender in Florida!
This 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 .
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.
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.
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
Metroplex Mortgage Services Wins #1 USDA Lender Ranking in Florida – Again!
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?
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.
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 USDA
- 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
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
Updated 2023 USDA Loan Income Limits were just announced!
What are the 2023 USDA Loan Income Limits in Florida, Texas, Tennessee, and Alabama?
While many of you know that it is possible to make too much money for a USDA loan, what you might not realize is just how much USDA income limits have increased for 2023!
Effective, July 13, 2023, USDA announced an increase to their 2023 USDA income limits for the Single-Family Housing Guaranteed Loan Program.
In today’s video, I will discuss the recent USDA income limit increases and explain why USDA income limits play such an important part in the USDA qualifying process.
If you have not already done so, be sure to download our FREE USDA Blueprint for Success. This educational resource is designed to help walk you through the USDA process step-by-step and is designed for both homebuyers and Realtors alike.
What are the updated USDA loan income limits for 2023 in Florida, Texas, Tennessee, and Alabama?
It is important to remember that USDA income limits vary based on the county that the property is located in as well as the number of individuals living in the house.
A key part of USDA Loan eligibility involves determining if your household income will meet the USDA income limits which is also known as “Annual Income.”
This will include all household members and NOT just those who are on the loan. Understanding your applicable county income limit is a critical step towards USDA qualifying.
Just how much has the 2023 USDA income limits changed? Let’s take a look at Florida USDA Income Limits for an example.
Effective July 13, 2023, the USDA Single Family Housing Guaranteed Loan Program has updated their income limits to the following:
- For the majority of counties, a one to four person household has been increased from $103,500 to $110,650.
- For a 5–8-person household, this has now been increased from $136,600 all the way up to $146,050!
These are substantial increases that are already making an immediate impact by helping more families qualify to purchase a home in our rural areas!
For your convenience, click here for a comprehensive list of all updated 2023 USDA income limits.
- Never assume that your income is either eligible or ineligible for a USDA loan.
- Additional factors may apply, and as your USDA mortgage professionals we are here to help with the calculations.
- If you are a realtor or a Home Buyer who had a previous situation where a loan was denied due to the income limitations in place, don’t be discouraged, contact us today so we can review your situation and offer a second opinion.
Remember, not all lenders have experience with processing and closing USDA loans. Just call or email our office if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service, which is great for those existing transactions.
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) 593-2001
Don’t forget to download our USDA Blueprint for Success with this link.
Will an IRS tax lien automatically put a stop to the USDA loan qualifying process? Can you qualify for a USDA loan with an IRS Installment Agreement Repayment Plan in Florida, Texas, Tennessee, or Alabama?
However, USDA guidelines offer qualifying flexibility in cases of delinquent Federal tax debt where there is an IRS Installment Agreement Repayment Plan. In today’s short video, I’ll review the details of qualifying for a USDA mortgage with a tax lien.
Don’t forget to take advantage of our FREE download, “USDA Blueprint for Success.” This is a great educational resource that breaks down the USDA loan process step by step. It’s a must-have for realtors and home buyers alike.
Can you qualify for a USDA loan with an IRS Installment Agreement Repayment Plan?
Please Note: Today’s topic deals specifically with IRS repayment plans as it pertains to USDA loan qualifying. This is not tax advice. For any further IRS related questions, please consult with your tax professional.
USDA Guidelines – IRS Installment Agreement Repayment Plan
Tax Lien: Per the IRS, “A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a debt.” Additionally, when you do not fully pay the debt, the IRS will file a Notice of Federal Tax Lien in order “to alert creditors that the government has a legal right to your property”.
Repayment Plans: Depending on the specific tax situation, different types of IRS installment repayment plans may be available. This allows the balance to be paid over an extended amount of time.
Can you qualify for a USDA mortgage with an IRS Installment Agreement Repayment Plan?
You can qualify for a USDA mortgage with delinquent Federal tax liens when all of these conditions are met:
- They are in an approved repayment plan.
- USDA guidelines specifically state: “An applicant with delinquent Federal tax debt is ineligible unless they have a repayment plan approved by the IRS.”
- They have made a minimum of 3 timely payments to their repayment plan.
- USDA guidelines specifically state: “A minimum of three timely payments must have been made. Timely is defined as payments that coincide with the approved IRS repayment agreement.”
- The 3 minimum payments cannot be prepaid in a lump sum.
- USDA guidelines additionally state: “the applicant may not prepay a lump sum at one time to equal three monthly payments to meet this requirement.”
Documentation needed will be items such as the IRS installment repayment agreement and relevant payment history to reference the terms have been met which could be evidenced through bank statements or cancelled checks.
Lastly, don’t forget that your monthly repayment plan installments are also included within your USDA debt ratios.
You Can Qualify for a USDA loan with an IRS Installment Agreement Repayment Plan!
In summary, qualifying for a USDA loan with an outstanding IRS tax lien is possible with proof of an approved repayment plan as discussed above.
As an approved USDA lender, we are here for your unique qualifying situation. We have dedicated systems in place from pre-qualification to closing. Simply call or email to discuss your scenario or if would just like to take advantage of our free 2nd opinion service.
800-806-9836 Ext. 280
Make it a great day and I look forward to seeing you for the next tip of the week!
USDA Home Loans for Teachers in Florida, Texas, Tennessee, and Alabama!
Can a teacher qualify for a USDA home loan if they are changing school districts? Can they close on a home before their first paycheck is received?
In today’s video, I will explain how teachers and other professions can qualify for a USDA home loan after an employment contract has been signed, but before their first paycheck has been received!
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 Home Loans for Teachers in Florida, Texas, Tennessee, and Alabama!
How does a teacher qualify for a USDA home loan when changing school districts?
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!
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.
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:
- 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 applicant must remain within the same profession
- 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.
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!