The Home Buyer's Korner

Information presented should be used for educational purposes only.

June 1st, 2015

Guy looking up in color

GREATER KAILUA HAWAII

The Home Buyer’s Korner

Google+ RE Community

Google+ Mortgage Lender Community

Google+ General Contractor Communities

USDA/RHS Rural Development ~ How It Works

USDAUSDA/RHS Rural Development requires a home to be guaranteed under its program must be within a rural location with no more than 35,000 existing residences. To be eligible for a USDA/RHS Rural Development Home Loan, the home buyer must be ineligible for a conventional mortgage loan and generally created to help out low-to-moderate income borrowers become homeowners.

Property/Occupancy Requirements

The USDA/RHS only guarantees primary residences, but several types of properties such as:

  1. Approved Condominiums
  2. Townhomes
  3. New or Existing Single-Unit Dwellings
  4. Modular Homes
  5. New Manufactured Homes

USDA/RHS Rural Development has a specific checklist of items a home must have to be eligible for a mortgage. For instance, a USDA/RHS loan can only be used for a new manufactured home and if a home has a pool it value must be excluded from value when completing an appraisal. The home must be of a certain size and reasonable cost, including acceptable living condition, but repair funds to cure some issues is available..

Credit Score/History Requirements

The USDA/RHS home loan program does not have a minimum credit score requirement set for borrowers to be considered eligible and allows for up to 100% financing, but most lenders have what are called lender overlays that set a minimum FICO credit score of 640. That said, if a borrower has really limited credit history, this usually does not disqualify a home buyer from a USDA/RHS Rural Development Home Mortgage, however, an alternative credit history will have to be well documented. For home buyers who are just starting to building their credit they may be able to use items like 12 months of utility statements, auto insurance payments, cell phone payments, rental history and buy here/pay here resources as that alternative credit verification.

It’s imperative that a home buyer have any 30-day late payments show up in their credit within the past year. If a home buyer does have any late rent payments, there may be no more than two within the past three years and you’ll need to provide a reasonable explanation why it was late. Tax liens and delinquent student loan debts are almost always a path to loan denial. However, some lender will consider loan approval these liens or delinquent debts have an existing repayment history established and a payment history that shows a good faith of repayment.

Appraisal Requirements

A qualified appraiser must be used during the required appraisal process, meaning that the appraiser must be licensed and listed as an approved USDA/RHS appraiser within the region of the property. For some areas it can be difficult to find such an appraiser who can make the available time to inspect your home, so if you’re in an extremely rural area make sure your real estate agent and mortgage lender work together to ensure they can get your home inspected within the time frame of your sale contract. Additionally, your seller will need to make sure the home is in good shape when it’s inspected, as home in the locations that need a follow-up inspection to ensure any repairs are made can create huge delays and make your go past your set closing date.

Your local USDA/RHS Rural Development office is aware of these extreme locations and can offer some assistance.

  1. Third Party Appraisals – Under unique circumstances and only when approved by the USDA/RHS, a participating lending institution may use their own appraiser.
  2. Compliance – All appraisers are to abide by the Uniform Standard of Professionals Appraisal Practice.
  3. Timeline – The mortgage lender must be the one to set the appraisal within three business days for the property that is in the process of approval by the USDA/RHS.

Co-Applicants/Borrowers

Usually allowed when trying to qualify for a USDA/RHS Mortgage, home buyers may utilize a co-borrower/co-applicant to sign on the loan in cases where the home buyer’s income is insufficient to make a payment on their own.

There are a few things that a co-borrower should take into consideration given that they will become partially responsible for a loan, such as:

  1. Co-borrowers are legally responsible for any past due loan payments.
  2. The Co-borrower must also live in the home as a resident
  3. Must have enough credit to add to the loan for approval

It is very important for co-borrowers/co-signers to decide whether or not they would want to be held accountable for the loan, considering that a default or non-payment of the loan may reflect on their credit later on down the road.

Closing Costs

At the time of closing on the loan, there may be closing costs, such as:

  1. Escrow
  2. Origination
  3. Notary
  4. Title Insurance
  5. Lender Fees
  6. Credit Repair Costs

Keep in mind that it may be possible to negotiate and have closing fees wrapped into the loan as well, if the property has sufficient value. USDA/RHS also has no limit to seller concessions in situations when the appraiser provides a comment that the additional seller concessions over 6 percent do not negatively impact the value.

Because of the zero down payment and 100% financing available, USDA/RHS Rural Development is definitely a great loan for first-time homebuyers who are looking to purchase in a rural area.

VISIT OUR GREATER KAILUA AREA

HOMES FOR SALE LISTINGS

Livingston Homes for Sale

FIND HOMES THROUGHOUT KAILUA HAWAII

HUD FORECLOSED HOMES IN & AROUND THE GREATER KAILUA HI AREA

USDA FORECLOSED HOMES IN & AROUND THE GREATER KAILUA HI AREA

FNMA HOMEPATH FORECLOSED HOMES IN & AROUND KAILUA HI

FIND MORE FORECLOSURES IN & AROUND KAILUA HI

HAWAII HOME OWNERSHIP TOOLS

Your Home Purchasing or Refinancing & Renovation Tools,

Home Improvements, Home Renovations,

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase.

Here are just a few of the home improvements

you might consider with any Home Renovation loan

Repair or replace a roof

Install, replace or repair gutters and downspouts

Replace, repair or upgrade your HVAC system

Repair or replace plumbing

Install, repair or replace electrical systems

Kitchen remodeling (including the purchase and installation of appliances)

Bathroom remodeling, Full interior painting, Total exterior painting

Repair or replace a septic system and/or well

Disability access (wheelchair ramp, elevator, widen doorways)

Build, repair or replace deck, patio or porch

Basement waterproofing and finishing

Abatement/Stabilization of lead-based paint hazards

Replace old windows, Room additions, Finish an attic

Add a second story to your home

Replace a termite damaged sill plate (a water-damaged sill plate also)

Possible landscaping items such as correction of grading & drainage problems,

tree removal, repair a driveway and sidewalks

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

FANNIE MAE HOMESTYLE

The Conventional Alternative to FHA 203K

Great for Real Estate Investors and Second Home Renovations

Mortgage Loan Officers, Real Estate Agents & General Contractors

are ready to assist you with your home purchase

USDA RURAL DEVELOPMENT

Up to $10K for Home Improvements, Renovations or a Simple Remodel

Mortgage Loan Officers, Real Estate Agents & General Contractors are ready to assist you

A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

START YOUR PATH TO HOME OWNERSHIP TODAY

FNMA HomeStyle FNMA My Community Mortgage FHA One-Time Close Construction Portfolio or VA home loan Homes for Sale REO Short Sales FNMA HomePath Properties HUD Homes USDA Homes Condominiums Co-OpsTown homes Manufactured Homes Modular Homes Mobile Homes Log Homes Second Homes Investment Property 2-4 Family Custom Home Builders Custom Built Homes Luxury Homes General Contractors Home Improvement Experts Kitchen & Bathroom Renovations Real Estate Brokers & Agents Mortgage Lenders Federal Credit Unions Community Bankers Real Estate Listings Jumbo Investor Hard Money HARP HECM Equity Zero 3% 3.5% Portfolio Non-Warrantable Down Payment Assistance Keolu Hills Lanikai Maunawili Pohakupu Waimanalo Waimanalo Beach Aikahi-Kaimalino Coconut Grove-Kalama Country Club Knolls Enchanted Lake Enchanted Lakes Hillcrest Kailua- Kawainui Vista Kalaheo Kalaheo Hillside Kukanono Kuulei Lanikai Olomana Oneawa Canal Neighbors Pohakupu Aikahi-Park Beachside Bluestone Kaiilua Bluffs Kailua Estates Kailua Town Kaopa Kawailoa Keolu Hills Kukilakila Kuulei Tract Maunawili Kaluamoo St Kaluli St Manulani St KAM HWY Kamahele Pl Kamahele St Panekai Pl Kamani Kai Pl Kaikaina St Paumakua Pl Kina Srtreet Kina St Kanaha St KANAPUU KANAPUU DR Kanapuu Pl Paulele St Kaneapu Pl Aleka Pl Kaneohe Bay Dr Kaneohe Bay Dr KANEOHE BAY DR Hoolea Pl Paokano Loop Paokano Pl Paopua Loop Paopua Pl Hoopuni Dr Paumakua Pl Paumakua Way Papalani St Hui St Hooulu St Kapaa St Aukele St Aulepe St Aulike St Aulima Loop AULOA RD Aumoe Rd Aunauna St Aupapaohe St Aupula Pl Aupupu Pl Aupupu St Mowai St Aulike Street Nowela Pl Pokole Way Uilama St Paakiki Pl Paako St Haokea Dr Humuula Pl Humuula St Humuwili Pl Noninui Pl Ulualana Pl Uluamahi Pl Ulueki Pl Ulueo St Uluhaku Pl Uluhaku St Uluhala Pl Uluhala St Uluhao Pl Uluhao St Ulukahiki St Ulukanu St Ulukou St Ululani St Ulumalu St Ulumanu Dr Ulumawao St Ulumu St Ulunahele St Uluniu St Uluoa St Uluopihi Loop ULUPA Ulupa St Ulupaina St Ulupalakua St Ulupii Pl Ulupii St Ulupuni St Holoholo St. Holoholo Hale Kainalu Dr Kalaheo Ave Kalaheo Ave Pouli Rd KAHAIAKA Kalaheo Ave Kailua Hi MOKAPU RD MOKAPU ROAD KMCAS Dune Cir Hepaki Pl Nunu St Alihi Pl White Sands Pl Makalii Pl POMAHINA PL Makawao St Koohoo Pl Kooku Pl HALELA PL Halela St Makua St Lanipo Dr Wilikoki Pl Maleko St Lihiwai Rd Liku St HALIA ST Halia St Kaulani Way Kaumana Pl Auwai St Auwaiku St Auwina Pl Auwina St Auwinala Rd Olomana St OLOMANA ST KAIL Kawailoa Rd Kawailoa Rd Kawainui St Old Kalanianaole Rd Luika Pl Keolu Dr Aikahi Loop Aikahi Pl Aikane Pl Aikane St Aikapa Pl Aikapa St Pahumele Pl Pahumele Way Lekeona St Lapa Pl Aimikana St Ainoni St HAHANI ST Aoloa Pl Aoloa St 641 Auwina St Aiokoa St Namala Pl Nanaloko Pl Wanaao Pl Wanaao Rd Nanawale Pl Nanawale Way Omao St MOKAPU BLVD AKUMU ST Lorange Pl Makalii Pl Kaneapu Kealahou Pl Lunaai Pl Lunaai St Lunaanela Pl Lunaanela St Lunaapono Pl Lunaawa Pl Lunahai Pl Lunahana Pl Lunahaneli Pl Lunahelu Pl Lunahelu St Lunahooia Pl Lunahooko Pl Keaniani Pl Keaniani St NAPUAHANI RD Laiki Pl Kuaaina Way Kuailima Dr Maunawili Cir Maunawili Loop Maunawili Rd Kupau St Kuau St Nanialii St Nanialii St Molo St Ponopono Pl Palapu St Akipola St Paako St Palawiki St Akaakaawa St Akaakoa Pl Akaakoa St Akahai St Akahele Pl Akaiki St Akake Pl Akake Way Akaki Way Akalani Loop Kukana Pl Akalani Pl Kukana Way Akalei Pl Akamai Pl Akamai Pl Akamai St Akanahe Pl Akea Pl Akeke Pl Akekeke Pl Akele St MALUNIU Maluniu Ave MALUNIU ST Holoholo St Akiahala Pl Akiahala St Akialoa Pl Akialoa Way Akiikii Pl Pilipu Pl Onaona Pl Apokula Pl Apokula St Kuloaa Pl Akiohala Pl Mapuana Pl Akiohala St AKIPOHE PL Akipohe St Akipola St Mapuana St Akiu Pl Old Mokapu Rd Akoakoa Pl Akoakoa St Hauoli St Halula Pl Palione Pl Akuila Pl Akuleana Pl Akumu Pl AKUMU ST Akupa Pl Akupa St Mookua St Kupau Pl KUPAU ST Hamakua Dr Hamakua Pl Poo Pl Oneawa Kai Pl Oneawa Pl Oneawa St Manae St Kuuala St Kuuhale St Kuuhoa Pl Kuukama St Kuulei Rd Kuumele Pl Kuuna Pl Kuuna St Kuupua St Poopoo Pl Aalapapa Dr Onekea Dr Kehaulani Dr Wailepo Place Onioni St Wailepo Pl Wailepo St Lopaka Pl Lopaka Way Hinano Way Alahaki St Kailuana Pl Alala Pl Alala Rd Kipuka Pl Pinana St Mei Pl Ilimalia Loop Kelewina Pl Kelewina St Ohana St Puako Way Aloha Oe Dr Ohiki Pl Poopoo Pl Kuulei Road Main House Iopono Loop Pueohala Pl Alahaki St Mahealani Pl Iana Pl Iana St Mahiloa Pl Lala Pl LALE ST Lale St Lama Pl Kihapai Pl Kihapai St Aoloa Pl Pukoa St Kika Pl Kika St Hekili St Kalaheo Ave Hele St Tbd Lopaka Way Mokapu Rd OKO ST Akipola street Popoia Rd Hualani St Punaa St Punaa St Punana Loop Manono St Ka Awakea Pl Ka Awakea Rd Kiukee Pl Punua Pl Punua Way Loho St Aala Dr Aalapapa Dr Aalapapa Pl Aalapapa Way Kaanua Pl Milokai Pl Milokai St Kaapuni Dr Kainalu Dr Kalaheo Ave KAELEPULU Kaelepulu Dr Kaha Pl Kaha St Lokelau Pl Kahako Pl Kahako St Mokapu Blvd Mokapu Rd Mokolea Dr Kahili Pl Kahili St Mokulua Dr Lola Pl Mokulua Dr Mokumanu Dr Lola Way Kahoa Dr Auauki St Kai Nani Pl Kai One Pl Kaapuni Dr Lanae Way Kaiemi St NOKE ST Kaiholu Pl Kaiholu St Kaihone Way Kaikaina St Kaikea Pl KAILUA RD Kailuana Loop Kailuana Pl Kailulu Way Kaimake LoopKaimalino Pl Kaimalino St Kaimi St Kaimoani Way Kihapai St Ikemaka Pl KAINALU DR KAINALU ST Kainui Dr Kainui Pl Kaiolena Dr Kaiolino Way Kaipiha St Kaipii St Kaipii St Kai One Pl MOLO MOLO ST Pamaele St Kakahiaka St Lauloa St Launa Aloha Pl AWAKEA RD Iliaina Pl Iliaina St Kalaheo Ave Kalaka Pl Ilihau St Ilikaa Pl Ilikai St Ilikala Pl Ilikea Pl Ilikupono St Ililani St Ilimalia Loop Ilimalia Pl Ilimano Pl Ilimano St Kalama St Ilipilo St Iliwahi Loop Kalanianaole Hwy KALANIANAOLE HWY Kalawai Pl Hanale Pl Puualoha St Puukani Pl Noke St PUWA PL Pauahilani Pl Pauahilani Way Paukiki St Pauku St Manu Aloha St Manu Laiki St Manu Mele St Manu Oo St Kalolina Pl Kalolina St Aoloa St Aoloa St HIHIMANU ST Kawahine Pl Makaainana St Poalima Pl POALIMA ST Kuhimana Pl Kuhimana St ALAIHI ST Makakalo St Paloa Pl Mooiki St Kekumu Pl Moole St Hekiliiki Pl Kaulukanu St Hekilinui Pl Nonokio St Laumilo St Laukalo St Ahiki St Kanehunamoku Pl Laulii Way Laumilo St Waikaloa St Kulaiwi St Waikupanaha Pl Waikupanaha St WAILEA Kakaina Pl Kakaina St PIOHIA PL Kumauna Pl WAILEA ST Ilauhole St Kumuhau St Kumuula St 9TH Kaulukanu Pl KALANIANAOLE HWY Nenue St ROADWAY-KALANIANAOLE Bell St Kalau Pl MANANA ST Waiokeola St Wailea St Mahiku Pl Inoa St Inoaole St Kalanianaole Hwy ALOILOI ST Hoopulapula St Mahailua St Koa Moali Pl Manawaiola St Haunaukoi St Oluolu St Kaaiai St Mokulama St Flamingo St Mahiku Pl Kaauiki Pl Kaaumana Pl Kaaumana Pl Kaaumoana Pl Humuka Loop Humuna Pl Humuniki Pl Humuniki St Humupaa Pl Humupaa St HULI ST Kalanianaole Hwy Haleiki Pl HAUNAUKOI ST KUMUHAU ST NAKINI ST Hanalulu Pl ALA KOA Ala Koa St Saddle City Rd Lupe St Kamanaaina Pl Kamanaoio Pl Malolo St Paupahapaha Pl PUUONE ST EHUKAI ST Mekia St HILU ST Kalanianaole Hwy Nakini Pl Nakini St Kauholokahiki Pl Kauholokahiki St Poliala St HINALEA ST Maiaeka Pl KAULU ST Kaulukanu St Laumilo St Kalanianaole Hwy Kualau Pl Kumuniu Pl Kumuniu St Lukanela St Nalu St

Join us at Real Estate Social

Comments are closed.