Archive for March, 2011

Yes! True, according to the USDA rulebook, Borrowers can be ‘able’ to get FHA (or VA) financing, but if they have 20% down for an UNINSURED Conventional loan, they’ve apparently got no business applying for USDA :) . Here’s the exact verbiage from the USDA rulebook. (Remember these types of loans were brought in to assist ‘moderate income’ families who didn’t have sufficient cash for a downpayment.

The borrower must not have sufficient assets to obtain other traditional conventional financing. The borrower may, however,
qualify for an FHA or VA loan. In other words, applicants may have liquid assets and be eligible to participate in the GRH Program. Those assets, however, should not be sufficient to meet the down payment and closing cost requirements associated with a conventional uninsured mortgage product (LTV  80%). This means applicants do have a choice of USDA-Guaranteed Rural Housing, FHA, VA, or a conventional mortgage product with private mortgage insuranc
e.”

Comments No Comments »

Deducted from what? From gross adjusted Income, for the purposes of keeping you (the Borrower) below the Income limit for the program.
Remember, USDA Zero down loans have income limits which are determined by the entire income of the household.
Common deductions we immediately look for are for childcare expenses, minors living at home, full time students living at home, elderly folks 62+ yrs or older, disabled etc etc.
But medical expenses in excess of 3% of annual income maybe deducted. For a detailed breakdown, read this lengthy article.
USDA Loans & Medical Expense Deductions

Comments No Comments »