What are USDA Loans?

USDA loans are a very attractive option for borrowers who want to purchase a home. USDA home loans are usually aimed at rural areas but rural does not always mean remote. Do not assume that the eligible properties are all located miles and miles from civilization. A quick eligibility check will allow you to track down homes that meet the United States Department of Agriculture guidelines. Guess What? most are very close to some of the largest cities like Atlanta that continues to see urban sprawl.

You can check your eligibility by clicking on the image below

usda loans

Grab The Moreira Team’s guide “Simple Steps To A USDA Home Loan” to get the majority of your questions answered and what you need to know to get started.


USDA Home Loan

How to Apply?

Pre-Qualification

You need to:
Speak with a Moreira Team Advisor
Discuss and share general information about your income, savings, investments, and debts
Be aware of the income limits required for a USDA loans
Make sure you’re in a geographical location covered by the USDA guidelines
Check with your mortgage advisor that your credit score is 620+
Property type must be a single family residence
Your debt to income ratio cannot exceed 45%

The Moreira Team will:

Advise you if you pre-qualify for a USDA Rural Loan and provide you a pre-qualification letter and Good Faith Estimate
Discuss products, interest rates and closing fees
Identify your specific needs and assist you in selecting the product(s) that best fits your unique situation
Identify required documentation and application deposit necessary to apply
Schedule a second call for the application interview

Tips:

When you choose the Moreira Team for your loan financing needs, you’ll have the resources of an experienced financial lender, as well as the assistance of a seasoned mortgage advisor who will walk you through each step and help you understand the process.


Loan Application

You need to:
Submit a mortgage loan application
Provide documentation supporting your job history, income, savings, investments, debts and property you wish to purchase
Select a loan product
Receive and sign the application documentation and regulatory disclosures electronically
Submit your application deposit

The Moreira Team will:

Identify any additional documentation that may be unique to your situation to accomplish a credit decision
Deliver the complete application package electronically to the Moreira Team application processing team

Tips:

When you are getting ready for a phone meeting with your USDA loans advisor, you should come prepared. We have seen it take days, even weeks for some buyers to get their documentation together and others do it in less than an hour.

Here is the information you will need to put together to get started:

  • W2’s from the last two tax years
  • Last two years of completed tax returns
  • Two most recent pay stubs
  • Sales contract (Fully executed)
  • Rent payment receipts for the last 12 months
  • Proof that you have the down payment

Processing

You will need to:
Provide one person of contact for all communications
Sign-off on all electronically submitted documentation
Provide in some cases further information if the lender requires it
Show up as scheduled to your home appraisal to avoid any delay of your loan process

The Moreira Team will:

Walk you through the loan processing steps and length of time required
Schedule a time to come to the home for the appraisal
A title commitment and private mortgage insurance certificate is usually ordered at this stage and there is a fee associated with the appraisal in the range of $400-$600 that you previously deposited
Notify you with the appraisal results as soon as they are available

Tips:

Once the appraisal is complete, the application can will move to the underwriting stage


Underwriting

You will need to:
Provide home insurance certificate for the property being purchased prior to closing
Electronically sign and return the commitment letter from the lender with all up-to-date regulatory information

Moreira Team will:

Review all employment, income, savings, investments and debt
Verify information on the application to pay stubs, W-2 forms, tax returns, bank and investment statements, etc. to determine that you have enough income available for down payment, closing costs and living expenses
Verify the credit score report to determine outstanding debt, payment history and your current credit score
Review the appraisal to confirm the true market value and determine if the property meets the loan requirements
Determine that you meet all requirements of the term of the loan
Deliver the approval Letter and identify any closing conditions, if the loan is approved
Provide a copy of the appraisal and all regulatory conditions of the loan

Tips:

When you receive the Commitment Letter, updated regulatory disclosures and appraisal, please review these documents carefully before signing. Identify any conditions required for closing as some issues can crop up occasionally that are unforeseen. Once the agreement is signed it moves onto the closing stage.


Closing

You need to:
Attend the closing at your current residence by scheduling a time with our closing agent and sign all mortgage and legal documents
Provide final funds for closing

Moreira Team will:

Review and confirm all loan terms and closing conditions
Identify a convenient date, time and location for the closing
Schedule the closing with the title company
Prepare and deliver the closing documents to the title company and coordinate final figures for closing
Provide information on final funds needed for closing and the method of payment required

Tips:

When you attend the closing, bring a legal form of identification (driver’s license, state I.D., passport, etc.)
Please make sure you bring the necessary final funds in the form of a cashier’s check or secured funds

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