Terms and Conditions
*Free Apple iPad 2 16Gb Wi-Fi model ($499 value) for all new PURCHASE &
REFINANCES with
applications beginning December 15th, 2011 and ending January 30th, 2012.
1. Must apply via phone at 610-739-6563
2. Start date is November 15th, 2011
3. End date is January 31st, 2012 (must submit a complete application per
#5)
4. The loan must close by February 28th, 2012
5. A full application (with all documents requested by Joe Gonzalez of
Meridian Bank) must be received no earlier than
the start date and no later than the end date.
6. Only one iPad per “Subject Property” address
7. The minimum loan size for this promotion is $200,000.
8. iPad will be shipped direct to client within 10 calendar days of
receipt of final recording numbers.
9. Cannot be combined with any other promotions.
10. Sorry, no exceptions or substitutions allowed.
11. Property must be located within lending states
12. Void where prohibited
APPLY BY PHONE NOW! 610-739-6563
New iPad 2 when you refinance!
This gallery contains 2 photos.
Real Estate SEO isn’t magic, but thankfully it’s not rocket science either… – Part 2
Real Estate SEO isn’t magic, but thankfully it’s not rocket science either, its a simple business plan with a simple purpose.
-
Step 1: How To Develop a Solid SEO Strategy
Thankfully, human sacrifice is not yet a requirement to improve your search engine ranking. Although, if Google ever changes its criteria it is best to think about who is on the bottom of the totem pole. Refreshingly, SEO strategy starts with a very easy and basic concept, keywords.
You begin with a little brainstorming. If you work alone, you may want to enlist the aid of a friend or friends. They don’t have to be Realtors, just people who have had experience buying a home and are internet savvy. Your “Brainstorming Meeting” has one purpose: Gather ideas to create content and research keywords.
To get started you will need the following tools: A. your brain and that of your team or friends that you enlist; B. Google Keyword Tool (which implies that you need a computer/s); C. Blogging ideas for 3 months.
Regarding Tool C. Blogging Ideas, it is important to remember that this can be almost anything. It could be questions that people commonly ask you when they are looking for a home, questions that sellers commonly ask, new developments in Real Estate policy in your area, etc. Just think about content that is relevant to your community of buyers and sellers.
The Meeting Outline (about 1 hour maybe more):
- Idea Gathering (20 minutes) – You may order the material however you wish. One suggestion may be to order the ideas according to relevance to your community. Since you are building a 3 month plan, and you want to produce at least 1 good post each week (you could post more often if you can schedule the time, however, it is best to make your initial goals realistic and reachable. You can track results easier and gauge your success in visible increments that will help you stay positive) you will need about 12 good ideas. If you have more, great! Keep them coming, because this is just a plan to get you started, you will need those ideas later.
Keyword Research (20 minutes) – Next to each idea write keywords that belong to that topic. Write as many as you can think of. Once you have finished construct a search string for each idea that your team agrees is realistic (ex.: Home For Sale in Community X). Now comes the part where you collect some data to help you in your execution of these ideas. For this part you will use Google Keyword Tool. There are other tools that you could use, but this one is free and its results are easier to explain. [Click on the picture to see a screenshot with brief explanation]- Compilation and Planning (20 minutes) – Use the data that you gather from Google to construct a blog title for each idea on your list that uses rich keywords, but also reads like an attractive sentence. An example is the title for this article. It has the keywords I want, Real Estate SEO, and it also sounds interesting (at least… I hope it does). Once you have finished, reward each of your friends with a gift card to Starbucks (no greater gift on the planet), and then assign on your calendar a blog title to each week for the next 3 months. Now you are ready to start writing!! Yahoo! (shameful keyword pun – am I trying to hard?)
- Step 2: Best SEO Practices
There are many people who have written a great deal about Best SEO Practices, but in my opinion the one person who has nailed down the basic ideas best is Stephen Graham. He is a professional blog trainer and writer and he has written a simple, easy to follow list of things you need to consider each time you blog. The article is called: 4 Steps to Follow for Easy SEO and I highly recommend that you read it before you begin writing. You will notice a very basic principle that guides the logic of what he has written, it is one of the greatest principles by which we can live: Keep It Simple Stupid. I am not calling “you” stupid (it’s more something we need to say to ourselves, but take it easy, I don’t want to you to damage your self esteem), but it is a phrase that we all need to remember when writing. When your content is simple, the search engines will love it and so will your readers. It’s a win-win formula.
- Step 3: Staying Current & Competitive
The easiest part is behind you, now comes the hard part… be consistent. 20th century British author Aldous Huxley once wrote: “Consistency is contrary to nature, contrary to life. The only completely consistent people are dead.” He comments on a harsh, but very true reality, that it is difficult for any of us to be consistent. That said, what you are striving for is clearly not perfection (unless the idea of an early grave is attractive to you, in which case there is a very different article I recommend reading…). Just do your best to stay organized and execute the strategy that you have now created. No, it won’t be easy. It may require the help of someone else to remind you. Be it by means of your smart phone, your spouse or a co-worker set up daily and weekly reminders to stay on track with your schedule. Do research online and locally before you write to make sure that the information that you are presenting is still up-to-date.
One way to stay current and competitive is to invest your time in ongoing education and training. The more knowledge you possess of your industry and it needs, the natural byproduct you will produce is relevant and intelligent content that is usable and valuable to your readers. If you are interested in what programs might be useful, please feel free to contact me. I could give you a list, but honestly then you would know everything I know. How embarrassing that would be… to have all of the knowledge I possess summed up in just 2 blog articles! No thanks, I will save something for future conversation. May you have success with all your SEO endeavors!
If you have any questions or comments my preferred contact information is listed below.
Michael Hillanbrand
Joe Gonzalez Team
Marketing & Technology
office – 210-888-9210
mike.techexpert@gmail.com
Real Estate SEO isn’t magic, but thankfully it’s not rocket science either… – Part 1
Real Estate SEO isn’t magic, but thankfully it’s not rocket science either,nevertheless, it does involve hard work.
There has been so much talk about Search Engine Optimization(SEO), especially amongst bloggers and business professionals. So much so, that the term SEO is now a household name. Sadly, like many things that grow in popularity quickly, misinformation spreads with it. In fact, most people probably forget that it is an acronym. They talk about it as if it is an object or something that you can buy at a store.
Some people have and continue to exploit such ignorance by selling it online as a product or an application.They portray the illusion that, like the “magic beans” from Jack and the Beanstalk, your listing will climb to the top of the search engines overnight! Naturally, they charge an exorbitant fee for this form of SEO which generally consists of using paid advertising and over-aggressive measures that reap immediate results, but often see only short term gains. Sometimes these methods yield results, driving traffic to your blog and getting you higher on the search engines like Google, Yahoo and Bing. However, they could also result in your site being penalized (see Dilbert comic strip for example).
Even the better services, people who actually do the real work of analyzing and augmenting your blog to conform to current standards, still come with a price tag, and it is still temporary. That’s right! Temporary. Why?
Google, Yahoo and Bing are constantly changing their algorithms to improve the end-user experience. The criteria that is considered can be very different depending on the search term itself or even the location from which the search is initiated.
For example:
The criteria considered to render search results for the search string “Condo for Sale” when initiated from McDowell County, West Virginia will be very different from the results for the same search term in Miami, Florida. In West Virgina this very general term may render very usable results to a consumer, whereas in Miami, where the market is more competitive and Condos are more abundant, more specific terms may be necessary for the consumer to find what they are looking for. At times, the search habits of that particular consumer can even affect the results that they see on the screen as opposed to what someone in the same geographic area sees.
Why is this important to know? Because the search engines are designed to help the consumer, not the seller. Google and the other major search engines are thinking about ease-of-use for the average person searching for products, information, etc. It is our responsibility to ensure that our blog, websites and listings are also search-friendly. In other words, that means that you also need to think like your consumer. Is this beginning to sound pretty much like basic marketing principles? That’s because it is.
Your Knowledge – Your SEO
The same basic marketing principles that have been needed to sell products for centuries are still necessary today. There are still no real short cuts. You may be thinking, “I thought this was about SEO, not marketing.” Well, effective SEO has everything to do with marketing.
The key to appreciating this is in understanding that the “O” in SEO stands for “Optimization”. Optimization is defined as an act, process or methodology of making something as fully perfect, funtional, or effective as possible. In this context, optimization is applied to make your content more funtional with the search engines. However, in order to do that you have to know what the consumer is looking for, what they are likely to type into the search bar.
Do you really think that some SEO application or hired SEO expert knows your consumers needs better than you do? I sincerely hope that the answer to that question is “No.” YOU are the one who knows best! The knowledge needed to make your content accesible and popular on the search engines is already in your hands! You simply need to develop a strategy appropiate to the task, and remain vigilant in following through with executing that strategy.
Only a very small part of this is process is “techy”, so don’t let it intimidate you. You can do it, and in Part 2 of this article I will explain how.
Michael Hillanbrand
Joe Gonzalez Team
Marketing & Technology
office – 210-888-9210
mike.techexpert@gmail.com
Part 2 of this article will include: A. How to develop a Solid SEO Strategy B. Best SEO Pratices and C. Staying Current & Competitive
4 Reasons NOT to Refinance
Mortgage rates are at historic lows & the refi calls continue to come in. However I find myself recommending to not refinance to many clients. Huh?! Yes you heard right! The loan officer (me), who earns a living ONLY when you refinance (commission paid sales person) is telling clients to not pay me! The what-choo-talkin’-bout-Willis look is currently on your face. Allow me to explain.
Ask yourself the following questions:
- How long do you plan on living in the home for?
If you plan on selling the home in the near future & you can’t recuperate the closing costs in sufficient time to actually save money, don’t do it. The plan must make sense!
- Do you have equity in your home?
Refinancing might not make sense or even be possible if there’s insufficient equity.
- How long have you paid on your current mortgage?
If you paid 10 years into a 30 year mortgage, refinancing to a 30 year mortgage will only increase your costs. There are unique circumstances where you are forced to refinance due to financial crisis, lose of spouse’s income, divorce etc. These are the exceptions.
- Do you have a spending problem? Refinancing to pay off credit cards/short term debt may be huge mistake. Stop & think first. Can you pay off your credit card/short term debt with the next year or so by budgeting? Do you find yourself consolidating credit cards only to open up new ones to charge up again?
When does refinancing make sense?
- Will you save money on a monthly basis? No brainer unless you are increasing the amount of time you must pay. You could be making it more expensive in the long run. Keep in mind you MUST recuperate your closing costs in a reasonable amount of time. I like to see costs recuperated in 12 to 18 months max! Even better is getting a no closing cost refinance. Savings are immediate!
- Can you decrease your term hence paying less in interest? If you have a 30 year mortgage you’ve paid 10 years on but can get a 15 year at the same or slightly higher payment, well that makes sense!
- Are you getting a divorce & want to keep the home? For the other spouse to no longer be responsible on the mortgage, REGARDLESS of what your settlement agreement says, you need to refinance. Remember that a mortgage is a legal contract between the mortgagor (individual(s) who borrowed money) & mortgagee (the bank). That contract can’t be changed without the bank’s permission. So you know how your ex-spouse decided to keep the home & now pays the mortgage late or doesn’t pay at all? Well guess whose credit’s suffering? I’ll give you a hint: look in the mirror!
- Do you have equity, need more space & love where you live? If you love where you live, the kids must stay at the school they’re in & you have equity then you can decide to build an addition or upgrade your home so you have the necessary space/features to live comfortably.
- Do you plan on selling within 5 years & have a 30 year fixed? A 5/1 adjustable rate mortgage is a great option. Remember that the goal is to pay the least amount possible for the money you borrow for the time you have it. Why get a permanent solution (30 year fixed) if you have a temporary problem (selling in 3 years)? With a no closing cost refinance, your savings can be immediate!
Each and every client is unique. Together we must look at your goals & figure out if we can put a plan together that makes sense. For most people, your home is the largest investment you’ll ever make. Choose who you take advice from wisely.
One facet that I find to be one of the most, if not the most important is how long it takes you to recuperate your closing costs. Look out for this article in the near future!
Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville
Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville
Why haven’t you bought a home yet? Is a 20% down payment keeping you from buying a home? Have you rented for a long time & just aren’t sure? Are you a long time renter in the market to buy? Living in the King of Prussia, Plymouth Meeting, Phoenixville or the surrounding areas? Well stop renting already! FHA could be the answer you’re looking for.
Okay let’s use some real world #’s to help you appreciate what FHA can do for you.
How much are you borrowing
In this example the client (you) are buying a home using FHA (Line A). Current rates are around 3.75%/5.092% APR (B) for a 30 year fixed (C). The 
purchase price is $200,000 (D) & you will put down FHA’s minimum down of 3.5%. Your base mortgage will be for $193,000 (E) & your total mortgage $194,930 (F) due to the Upfront Mortgage Insurance required by FHA (email if you want more info on mortgage insurance).
Your monthly payments
Your principal & interest payment will be $902.75 (G), property taxes guestimate $250 (H), monthly mortgage insurance $184.96 (I), homeowner’s insurance guestimate $50 per month (J) for a grand total of $1,387.71 total monthly payment (K).
Total cash needed at closing
Your down payment is 3.5% (L) of $200,000 (D) which is $7,000. The closing costs are $5046.25 (M), the escrows/prepaids $4,000.41 (N) & Upfront Mortgage Insurance $1,930.00 (O). Your total costs are $9046.25 for closings costs (M) & escrows/prepaids (N). The seller* can pay for the closing costs which is $9,000 (P). Remember that in line F we are lending you the money for the upfront mortgage insurance (O).
Bottom line out of pocket = $7,046.66
Now I’m sure I lost a few of you somewhere in the translation so click below for a video explanation. If you have any other questions give me a call or send me an email!
| Client: Insert Your Name Here! | ||
| A | Mortgage Type |
FHA |
| B | Interest Rate |
3.750% |
| C | Term |
30 |
| D | Purchase Price |
$200,000.00 |
| E | Mortgage w/o MIP |
$193,000.00 |
| F | Total Mortgage w/MIP |
$194,930.00 |
| G | Proposed Payment |
$902.75 |
| H | Taxes |
$250.00 |
| I | Mortgage Insurance Premium |
$184.96 |
| J | Homeowner’s insurance |
$50.00 |
| K | Total |
$1,387.71 |
| L | Required Down payment |
3.5% |
| M | Closing Costs |
$5,046.25 |
| N | Escrows/prepaids |
$4,000.41 |
| O | Upfront Mortgage Insurance |
$1,930.00 |
| P | CC paid by seller |
$9,000.00 |
| Q | Total Due at closing |
$7,046.66 |
| **Please note that all numbers are estimates | ||
| **Rates are not guaranteed, please ask me about your rate lock options! |
*You can negotiate at the time of your offer for the seller to pay for your closing costs. Please consult me PRIOR to signing a contract!!
Why Rent? Fixed FHA Mortgages at only 3.75% (5.092 APR)! King of Prussia, Plymouth Meeting, Phoenixville
My latest adventure – “how & where to” guide for Salmon Fishing in upstate NY
The year was 1983 & I was 8 years old. My father decided he was taking me to Pulaski, NY to go Salmon Fishing. Twenty eight years later, we haven’t missed a year. If you’re looking for a manly man’s fishing trip that’s not too far off, this is a great place to start.
WARNING:
- These fish are strong! I DO NOT recommend this for a beginner’s trip.
- River currents can be strong, the water deep & rocks slippery. Don’t be a “bruto” – Spanish word for a moron who doesn’t use common sense.
- Plan your trip in advance. Salmon season is short (mid/late September through October) & it can be challenging to find lodging.
- Purchase your gear in advance. Equipment can be is expensive once you’re there. See the bottom of the page for links to stores (Click here to see what I use).
- See #2 again & take me seriously. For all you “brutos” out there, you’ve been warned & you will get hurt if you’re careless.
Now for the fun…….
We left King of Prussia at 4 AM (they had to convince me) & 2 pit stops later we’re eating breakfast at Mapleview Family Restaurant in Parish, NY. It’s a long trip so it’s good to know a few good restaurants along the way. If you’re hungry try the “Big Rig” or “Breakfast Blizzard”. (Click here for direction to all stops). Don’t forget to enjoy the foliage on the way up!
With renewed energy we went to see where it all begins at the Salmon River Fish Hatchery. It’s educational & suited for all ages. So don’t be a heathen, take a minute & learn something. Your wife will be proud. Best of all, you’ll see a ton of king salmon (Chinook) & silver salmon (Coho). After seeing all those fish, we were fired up & ready to go!
A few miles off we started fishing at the Orwell Brook. The Orwell is a small stream with deep pools & little to no crowds. Now keep in mind much of the surrounding land is private & you may need to pay to cross their land. Once there, we found the salmon! I decided I was going to play cameraman & angler at the same time. Sorry for the bumpy video but it gives you a good idea of how these fish fight.
After catching our limit (3 per day), we loaded up our fish & made a quick stop at Fat Nancy’s Tackle & Fly Shop (side note, dragging 60 to 70 lbs worth of fish for ½ to 1 mile uphill is NOT easy. Bring your inhaler cupcake). If you forget anything these guys have it all, but expect to pay a premium. Here you can find a guide, lodging, equipment, etc. In case you’re wondering, Fat Nancy is a fish not an obese older woman who owns a tackle shop. Sorry to disappoint you.
By 5 pm we’re beat so we head off to check 
into our cabin at Catfish Creek Campground. If you get a cabin, it’s great. The trailers, not so much BUT, they are cheaper. I prefer to spend a few bucks more for the cabin. We chose CCC because it’s close to a number of fishing holes, the owners are friendly & the salmon/steelhead fishing is outside your doorstep.
The next few days we drove between fishing holes, caught a ton of fish, shared fish stories & created memories that will last a lifetime. Salmon fishing is the guy’s guy ultimate bonding trip. I have to say thanks to my dad for making the decision 28 years ago to take me fishing.
One thing is for sure, if you go, you won’t regret it. Take your kid too. He’ll love you for it. I know I did. Feel free to shoot me an email for additional tips on where to go & what to do while you’re there.
What I use: Links for equipment:
Orvis Chest Waders – Light weight, breathable, comfortable. If you plan on using your waders hard, spend the few extra bucks. If not get a pair from Cabela’s bargain bin.
Cabela’s Ultralight 2 Lug Wading Boots – I walk (sometimes even run chasing fish) with these which is hard to do with heavy boots. Make sure you use the metal studs as the rocks are VERY slippery. You can also just buy corkers (spiked shoe that attaches to boot). Don’t go with just rubber boots unless you like to swim in cold water.
Shimano Stradic CI4 fishing reel – Super light weight which makes it easier on an old injury to my shoulder
PrecisionPak Vulcan Fannypak – I like a fanny pack because it’s small & you have everything you need around your waist. You can also pick one up at Walmart.
Rapala Stainless Steel Fishing Pliers – These are a must. You can cut line, remove hooks, clamp down split shots, etc with these. I clip mine to my belt & have a cord tied to one end in case I drop them. Regular pliers will work too but I use mine for several kinds of fishing.
Costa Del Mar Polarized Fishing Glasses – I like my Costa’s which are lifetime guarantee. If you’re just starting get some a cheap $20 pair. Serious fishermen will drop about $150 to $200 on these.
Utility box – Buy 1 small one for your gear. You’ll only need hooks/flies, split shots (weights) & plastic eggs or sponges.
Crazy eggs or wally wogs – get a few packs as you will lose quite a few
Owner hooks – these hooks are sharp! The sharper the hook, the less fish you’ll lose.
Tin split shots – again buy a few bags of these as you will lose them & they’re cheap.
Salmon fishing rod – personal preference here – I like a 8’6″ to 9″ medium action rod.
Puerto Rico: Zip lining, Tarpon Fishing & a Wedding
Puerto Rico: Zip lining, Tarpon Fishing & a Wedding
Although Summer was officially over in September, I wasn’t quite ready. Back pack in hand (if you read previous posts, you’ll notice a theme) Jen & I headed to Puerto Rico. Don’t you love it when you can visit family that lives in a tropical climate?! 
I like adventure but not necessarily something that’s going to kill me. We opted for zip lining at Toro Verde Adventure Park in Orocovis, Puerto Rico. The drive was amazing. Think long winding roads up a mountain into lush vegetation.
At Toro Verde, the zip lines in this course range from 800 feet to 2526 feet long. That is almost a ½ mile long! And the view you get at 600 feet off the ground is breath-taking — or maybe your breath will be taken away by being that far off the ground!
We added the “La Bestia” literally translated “The Beast” to our tour. This zip line is different from all the others. For this one, you are put into a large body harness, and you lay down and get attached to the cables from your back. So you are flying through the air like a bird (or Superman or Ironman). As far as I know, it is the only one of its kind like this in Puerto Rico.
At 4745 feet, it is almost a mile long (one of the longest zip lines in the world) and it is really, really high off the ground (853 feet)! This zip line takes about 2 minutes from end to end, and you are going pretty fast during parts of it — with the wind whipping across your face (hang onto your hats and sunglasses). You have time to really enjoy the scenery. It was really fun, and over way too fast — I could have done that again and again.
Since I love to fish, no trip to the Caribbean would be complete without tarpon. For the majority of the trip they eluded me however on my last day, 3 hours before my flight left, my persistence paid off. This little guy jumped at least 4 to 5 feet in the air.
All in all a great trip. Summer is officially over but now it’s time for some fall fun. Salmon fishing in upstate New York is next. I’ll be sure to send some pics.
Sincerely,
Joe
P.S. – Click here for a few more pics!
P.S.S. – For those of you that love the outdoors, I highly recommend Krux shorts & Keen sandals. They’re both WELL worth it.
Related articles
- ToroVerde park delivers in adventure in Puerto Rico (gadling.com)
USDA Updates – They now charge for the awesomeness!
In my last post I gave a few tidbits about USDA (Click here if you missed it – Kick butt 100% financing that you’ll probably qualify for). WOW, I didn’t realize so many people would respond. Good Great stuff guys. So here are a few updates….
October 1, 2011 USDA Rural Housing Loan Changes:
USDA Rural Housing has been taxpayer-subsidized for years. Long gone are those days. The Rural housing Program will no longer be dependent on tax payer money (wish we could say the same about the big banks! Can I get an AMEN!!) To stay in business they started charging for the awesomeness of the program (as if you didn’t know that was coming). They now charge mortgage insurance not only upfront but now monthly for the life of the loan. (insert Homer Simpson like “DOH!” right here) Relax Homie, the upfront has gone down & the monthly isn’t bad.
USDA Rural Housing mortgage insurance rates are:
- For purchases, 2.00% upfront fee paid at closing, based on the loan size – down 1% from 3% total
- For refinances, 1.00% upfront fee paid at closing, based on the loan size – no change
- For all loans, 0.30% annual fee, based on the remaining principal balance – this sucks but just think – FHA is 1.15%!
Real life numbers for USDA Rural Housing:
| Client Name |
Client A |
| Mortgage Type |
USDA |
| Interest Rate |
3.750% |
| Term in Years |
30 |
| Purchase Price |
$200,000.00 |
| Mortgage Amount w/o MIP |
$200,000.00 |
| Total Mortgage w/MIP |
$204,000.00 |
| Proposed Payment |
$944.76 |
| Taxes (guesstimate) |
$250.00 |
| Mortgage Insurance Premium |
$50.00 |
| Homeowner insurance (guestimate) |
$50.00 |
| Total payment |
$1,294.76 |
Okay so paying mortgage insurance for the life of the loan isn’t cool but before you get your panties in a bunch, let’s bring it back into perspective:
- FHA charges 1.15% which would be $184 per month (you may insert Homer-like “DOH!” again)
- 100% financing – this alone is worth it
- The rates currently are in the high 3% low 4% range
- It’s 100% financing (yes I said this twice)
- It’s now only 2% not 3% upfront so it takes a little of the bite out of it
- You don’t need a 660 credit score
- Did I mention it’s 100% financing?
For my local clients, check out just a few of the areas that the USDA Rural Housing Programs are available in:
Collegeville, Royersford, Evansburg, Trappe, Limerick, Schwenksville, Skippack, Oaks, Kimberton, Chester Springs, West Pikeland, Mont Clare, Birchrunville, Spring City ALL QUALIFY!!! (Generous applause please!!!)
So what’s your next step you say? (get ready for a shameless plug for the Joe Gonzalez Team at Meridian Bank)
I’m so glad you asked! Give Joe Gonzalez from Meridian Bank a call. (Did I just reference myself in the 3rd person?) I’ll be happy to help you with your financing needs! J I hope you enjoyed the info!
USDA Rural Housing – kick butt 100% financing that you’ll probably qualify for!
USDA Rural Housing – kick butt 100% financing that you’ll probably qualify for!
So you’re looking to buy a home, you don’t have a lot of cash to work with & want a low payment. Looks like you better go to Craigslist & see the rental section right?
Not so fast young grasshopper (who doesn’t love David Carradine). Enter USDA Rural Housing..…
Q: What is USDA Rural Housing?
A:
USDA Rural Housing Loans also called a Rural Development Loan, is a government insured home loan offering 100% financing to qualified buyers, allows for all closing costs to be paid for by the seller or financed into the loan (& the crowd goes wild!!). They offer some of the lowest rates of any loan at a fixed interest rate.
Q: What are the requirements for USDA Rural Housing?
A: 3 parts to this answer.
- Credit Worthiness: Your thinking, “Ok, I knew there’s a catch!” Relax Danielson. When your credit is reviewed for a USDA Loan the underwriter will be looking for a history of paying your bills on time. Slow pays & credit blemishes may be overlooked if you have established your credit over the past 12 months. A good credit explanation letter goes a long way. If you say “I didn’t pay because I really needed that new Trans Am to pick up a hot chick” well that’s not going to win you any brownie points. “I didn’t pay because I lost my job/got the bubonic plague/had 8 kids like octomom HOWEVER now I’m back to work & everything is hunky dory! Just check X references!” That will generally go much further….unless you still have bubonic plague. If you have open judgments or collections the UW will most likely ask that they be paid in full before you close.
Income: You will need to be able to document your income on a USDA Rural Housing Loan. USDA will generally want to see a two year history of employment or consistent income. “I’m a pizza guy, waiter, Columbian drug lord & can’t get paid under the table” isn’t going to fly. There are exceptions on the two year requirement can be made for applicants such as students. On a USDA Loan Assets are not required for approval, but can help overcome any possible blemishes on credit. Keep in mind you MUST be within the maximum income limits. Click HERE for the USDA Rural Housing Income Eligibility.
- Where you Live: In order to qualify for a USDA Rural Housing Loan your home must be in designated USDA rural area. You can check the USDA eligibility of your county. It might will surprise you how many areas qualify! Scroll to the bottom to see some of the areas. I think you’ll be pleasantly surprised!
Q: Is the USDA loan program limited to first-time buyers?
A: No, the USDA Rural Housing Program can be used by first-time buyers and repeat buyers.
Q: What mortgage products are available with a USDA mortgage?
A: The USDA / Rural Housing Program offers 30-year fixed rate mortgages only. There is no 15-year fixed rate mortgage. There are no adjustable-rate mortgages. 30-year fixed only.
Q: I can’t afford closing costs. Can I get a gift for my closing costs?
A: Yes, USDA loans allow gifts from family members and non-family members. You will need a gift letter to accompany your loan application. Your loan officer (that would be me) can give you one.
Q: Can I use the USDA loan program for an investment property or vacation home?
A: No sir, the USDA Rural Housing Program is for primary residences only.
Q: Is there a minimum credit score for the USDA loan program?
A: There is no minimum score, per se, but 640 is generally regarded as a cutoff point. If your FICO is below 640, you should be prepared to explain why your credit score is below 640, and provide documentation. If you are without a credit score, your lender may accept “alternate” tradelines to establish credit history.
This list is NOT meant to be a comprehensive overview of what the USDA allows, but it covers a lot of good ground.
If you want more information, talk to your lender (that would be me J) or reach out to me directly. USDA mortgage rates are low and my office underwrites and funds our USDA loans in-house.
Now here’s the great news for all of my SEI Investments, Vanguard, De Lage Landen, Pfizer clients in & around Montgomery County. The following cities qualify:
Collegeville, Royersford, Evansburg, Trappe, Limerick, Schwenksville, Skippack, Oaks, Kimberton, Chester Springs, West Pikeland, Mont Clare, Birchrunville, Spring City ALL QUALIFY!!! (Generous applause please!!!)
So now that I have your attention, what’s the next step? Give me a call shoot me an email with questions! It’s that simple.