Mooers Realty Maine Real Estate Blog
USDA Loans, Buying Maine Homes.
Like most things in the World today, the list of options for buying a Maine home is pretty much endless too.
And it is not always the real estate property buyer picking the best mortgage loan for the home but the other way around.
Because life circumstances like divorce, lay offs, medical down time spent in the break down lane all take their toll. Knock you down and keep you there.
On home loan eligibility success, the ability today to buy or not when you have your heart set on getting under a roof, inside four walls.
The options to buy a Maine home can tighten up and a VA, Maine State Housing loan is one option.
The USDA rural home loan to buy a Maine home is another neat mortgage lending product.
How does the single family USDA RD home loan in Maine work?
Basic Qualifying Information for USDA Loans:
Credit score at or above 620. There can be some exceptions but it might take a little wrenching, looking under the credit hood to repair your credit. To get you bankable and polished up to remove the hard edges that keep you renting, not buying a Maine home.
It all starts with pulling a credit report which once a year in Maine is free. Give them your social security number and watch the machine whirl, purr, spit out the results.
Then peeking at what shows up on that snap shot of you today on paper and chasing down mistakes. That haunt you, follow you and keep you from getting the house keys to a new Maine home.
I have seen local bankers work with a potential buyer and after six months whatever was stopping them dead in their tracks from buying a Maine home is suddenly removed. Healthy in the pink happen.
Credit restored as the debt is managed and in some cases, consoldiated to a more attractive rate product.
Banks in Maine have to make loans, want to get you saddled up with a mortgage that works best. No home loans made and no real estate closings, then no job for the Maine home loan bank mortgage arranger.
The USDA RD Maine home loan is a 100% loan, you can get a gift or the house seller can contribute toward your closing costs.
The qualifying is based on your gross taxable income considered in determining whether you get to buy a Maine home sweet home or not at this point in time.
The percent of the Maine home buyer's pay check being sliced and diced and applied to the principle, interest, property taxes and home insurance is a big factor in determing can the purchaser pull off a successful, lasting mortgage paying scenario.
Direct loans for buying a home through USDA are available and come with a list of requirements. Like no swimming pool, generally 1800 square feet or smaller for the USDA direct home loan program.
The mortgage underwriters wants to see no more than 29% of your home budget monthly paycheck going towards the principal, interest, taxes and insurance on the loan.
And that not more than 41% of the same paycheck is getting divvied up, spent on ALL of the maine home buyer's bills and including the house payment.
Debt ratios, your credit score are a big part of whether you can or can not get the green light, thumbs up for buying a Maine home using the USDA RD or any mortgage loan product.
Child care is also considered in qualifying for a USDA loan to buy a Maine home.
But beware because there are some chutes and ladders, a maze to consider.
The child care costs affects the income used for qualiying to buy house in Maine.
So even if your income to buy a Maine home is over the limits on the USDA RD guidelines sheet, you could still be eligible in your area to qualify because of the child care paying expenses.
We can help you do the math correctly before getting on the house hunting trail in earnest.
MOOERS REALTY will help you do all your "home work"!
All out in the open. Make it open book easy for you to understand and with no surprises or anxiety wondering if you do or don't qualify for a Maine home loan.
Round up your paperwork. Your IRS tax forms for the last couple years, all the payments you make and for how much, to whom. And to study how long you have left on them.
So long term vs short term can be figured out.
If less than 10 months on an installment debt, they are not considered so adversely when you are that close to the finish line of having them paid off for the free and clear. One less obligation on the debt side of your life.
Ask a professional too.
All too often, doing what you think as a potential Maine home buyer to get a mortgage can hurt your chances.
Do just the opposite to spoil the pretty Maine home buying picture dream.
Whether you should pay off a debt or not, or to consider bankruptcy, etc all needs careful study before you take a dangerous step that will come back to haunt you. Follow you like a painful shadow.
There are often other remedies for your debt situation if everything is slowed down. Hands are raised to ask important questions in the Maine home buying dog and pony. That is ever changing and knowing the latest Maine home loan program details can get you the renter out of that rut and in your own place.
Bankruptcy filing is a big ugly black mark that stays on a credit report for 10 years has a negative impact on your odds of getting a home mortgage.
Exhaust all other options before resorting to bankruptcy. Even though you might really want to just put the painful past behind you.
How you deal with, tip toe or poke the sleeping bear can pay dividends later on as you take years to fix bad credit. Instead of months invested to get into your own Maine home.
Have fun with a mortage home loan calculator to figure out the monthly payment on your future purchase.
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One drop dead gorgeous state that is second to none to pure unspoiled natural beauty.
Reach out, here for questions on USDA RD Maine home loans or other areas of buying a house, any real estate property listing in Maine.
MOOERS REALTY 69 North Street Houlton Maine 04730