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The Easiest, Best 100% USDA Home Loan Around!
You can Close Faster without any hassles and still get the Best Mortgage Rates and lowest fees on an USDA Home Loan. We are your Local (Orlando, FL Based) Discount, USDA Direct Mortgage Lender, Call today - We will Beat ANY Competitor's Offer.
Direct Mortgage Lender - Not a Bank and Not a Broker
Don't risk purchasing your home through a big bank, mortgage broker or some out of state lender. Work with a Local USDA Direct Lender who cares about its clients
Our Underwriters are right here in our Maitland, Florida Office and they care about our borrowers. The Big Bank Underwriters are overworked, under paid and have loans sitting on their desks for weeks. At RP Funding our underwriters have a much lower work load allowing them to approve loans in just 24 hours, and have the time to look at the entire picture and not just jump to conclusions.
We have the authority to underwrite and close your loan, and we do it in as little as 10 days.
The big banks are so backed up with refinances, many raised their rates to slow down volume
To a big bank you are just a number, and will most likely work with an out of state call center
Mortgage broker fees raise the cost of your loan and slow it down, as a Direct Lender you pay no Broker Fees
No Games, No Pushy Sales People and BBB A-Rated
Most mortgage loan officers are paid commission and make extra money by selling you a higher interest rate, not here. We don’t have pushy commission sales people, you will work directly with a Salaried Credit Manager who’s only concern is earning your business, not making their next big commission check. This helps us keep our rates and fees low.
Based Locally in the Orlando, FL area
Our office is just off of Interstate 4, Exit 90B in Maitland Florida, just outside of Orlando. We would love to meet you in person, although you are welcome to complete the entire process over the phone, it’s completely up to you.
$1,000 "Best Mortgage Rates" Guarantee
If you find a better loan somewhere else (which we doubt you can) and we can’t beat it, we will give you a $1,000 Visa Gift Card.**
Video Transcript from Saving Thousands with Robert Palmer
Welcome to Saving Thousands with Robert Palmer.
Let's look at a type of mortgage financing that requires no down payment and is very popular here in Florida. That's USDA financing.
The United States Department of Agriculture offers financing to homeowners who want to purchase a home in rural areas set aside by USDA. USDA offers 30-year residential mortgage loans to consumers who meet certain income criteria when the homes are located in these designated areas, as determined by the local RD, or Rural Development office.
The state of Florida has many areas that are eligible for USDA financing. The easiest way to determine if the home you're looking at is eligible for USDA is to check the Florida USDA mortgage website. You can do this at eligibility.sc.egov.usda.gov. And you can also get a link from my website, saving Thousands.com.
Under property eligibility on the side of that site, you'll click on single family housing. And then using a map, you can see that much of Florida, outside of the cities, is eligible for USDA financing. And you can actually put in specific addresses and have them shown on the map as well.
In addition to location, the next important requirement is income limits. For most Florida households between one and four persons, the income limit is $74,750 per year. So you can see your household can have a pretty decent income and still qualify for USDA.
In certain counties and for larger household sizes, the limits can go as high as $120,200. You can check the exact income limits for your household size and county on the same website, by selecting Single Family Housing under Income Eligibility.
To get a USDA loan, you must earn less than these income limits and be purchasing a property that's in the eligible area. And again, both can be checked at that website, and you can find a link to it from my website, SavingThousands.com.
Income earned by anyone who will be living in the home with you is counted toward the income limits, not just the borrowers on the loan. All members of the household of working age will need to provide tax returns, so their annual income can be determined and counted against the limit.
Also, if you do exceed the income limits, there are some expenses you may be able to deduct from your income to get below the limits. They're deductions for the number of dependents you have, daycare expense, and elderly parent care expense, as well. You should work with your mortgage company to determine if you have any of these eligible deductions, if you're close to the income limits.
If you meet the property location and income limit requirements, a USDA loan is a great way to purchase a home with no down payment. Because USDA offers 100% financing on home loans, you're able to purchase a home with just a few thousand dollars out of pocket, which you'll need to help cover inspections, appraisals, and some closing costs.
USDA loans also have lower closing costs than FHA, or Federal Housing Administration, loans, making them more affordable and the monthly payments lower. Most mortgage companies offer USDA home loans, so it's important to shop around and make sure you're getting the best deal.
One other thing to consider with a USDA loan is that the mortgage company has to send the actual file to the USDA office as a part of the approval process. After the mortgage company has underwritten and approved your loan, the local USDA office is required to review and approve your loan, as well, and this can lead to a slowdown in the mortgage process. USDA loans will take longer to close than other types of loans, because of this added step of the file being underwritten by USDA in addition to the lender.
Some of the USDA offices are very backlogged and can take as long as three weeks to review files. For this reason, it's important to work with a lender who can get your file to the USDA office as quickly as possible and get the process started.
Some lenders take 60 days to get the file ready for USDA. And then it's another 21 days for the USDA review, leading to months of waiting. With a little shopping around and research, you can find a lender who will get your file to USDA much more quickly and cut down the waiting time for your new home.
Another thing to look at is in return for guaranteeing your mortgage to the lender, which is what allows you to get this 100% financing, USDA charges a guarantee fee, which is a form of mortgage insurance. These guarantee fees are financed into the loan and change from time to time, but are lower than similar fees charged on FHA loans.
So let's recap the USDA home loan. 100% financing, but you'll still need a few thousand dollars to cover appraisals, inspections, insurance, and some closing costs. Lower costs than FHA loans, because the USDA guarantee fees are less than the FHA mortgage insurance premiums.
It requires a property to be in an eligible area. It requires the household income to be below the income limits. And the file must be approved by both the lender and the local USDA office. And always shop around. Interest rates and fees are set by lenders, not by USDA. So shopping around can save you some money.
To learn more about Florida USDA loans and for useful links, visit SavingThousands.com and enter keyword USDA. And remember, you can always join the conversation on the Saving Thousands forums, at SavingThousands.com, where you can ask me questions any time.
We're listening to you. Coming up, Robert answers your questions straight from our web forum, at SavingThousands.com.
Welcome to Saving Thousands with Robert Palmer.
Let's go to the website and see some questions from real users on the SavingThousands.com forums.
User Square Root of Pi on the RP funding forums asked me about a co-signer and getting a gift for a down payment. I explained that having a co-signer can help if your income isn't enough to qualify for a home, but can't really do anything to offset poor credit.
So if you're trying to qualify for a home and your income just isn't enough, adding a co-signer may be an option. This co-signer's income and debts can be combined with your own, and to see if you together would qualify to purchase the home you're looking for.
It turned out that their question really had to do more with getting the down payment from the co-signer, not necessarily helping their income situation. In order to get a down payment, the person doesn't have to co-sign with you. They can actually just make the down payment in the form of a gift, which requires specific documentation, but will allow you to use that money for the down payment on your new home.
To see the full conversation with myself and this user, visit SavingThousands.com and click on the Forums.
And remember, you can ask me questions yourself by clicking on the Ask Robert Palmer link, and signing up and joining the forums.
Thanks for watching. Be sure to join us again next week, as Robert Palmer shares more ideas on how you can save thousands of dollars on everyday decisions. That's next Saturday at 10 AM, right here on TV 27.
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