Wednesday, April 11, 2012 - Article by: David Browne - Goldwater Bank -
Millions Now Qualify for an USDA Loan!
I am a USDA approved lender in Hawaii, not a government agency.
Quick facts about the USDA loan program.
Here are some quick facts about USDA, and why Maui & Hawaii in general is perfect for the program.
USDA Rural 100%
Hawaii properties have the location requirements that make the Rural Housing Program ideal for this market.
* Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
* Available to low and moderate income rural households
* No requirement to be "first time" home buyer
* Less up-front cash to close requirements for this program than conventionally insured FHA loans
* Loan limits are dictated by the applicant's income with respect to program eligibility and loan repayment ability.
Previous ties to FHA loan limits have been eliminated.
* With USDA we can get "Pre-Approval" before a property is selected, which takes all the guess work out of a typical "Pre-Qualification".
Income limits for Maui county are:
1-4 houshold size $108,300.00
5+ household size $142,950.00
Maui exclusions from the Rural Housing Program are Kahului and Wailuku. All other areas of the island qualify for this program. On every island there are a few areas that are not considered rural by USDA. I can tell you that with the exception of Oahu its fairly wide open though.
Since this loan aims towards people intending to occupy the property as their primary residence, Ohana's or cottages are not allowed. However keep in mind that many condos qualify for this as well so not just single family homes.
Another point worth bringing up is that it allows for the seller to contribute towards your closing costs. This creates a possible situation where you could literally buy a home with zero money down and zero money out of pocket to close escrow!
If you would like to apply today you can do so by going on my website; www.loans4hawaii.com & clicking "apply now" at the top menu. Otherwise I can call you sometime on Monday. Whichever is better for you.
Mahalo for your interest, and have a great day!
Aloha Mortgage Loans
Mortgage Loan Consultant
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