USDA Loan in Pennsylvania (888) 464-8732

In this post, USDALoanInfoPA wants to talk about hiring a really good loan officer or Mortgage Lender in Pennsylvania and the importance of doing that, especially when searching for a USDA Loan in Pennsylvania.

We want to give you a real-life scenario that happened to a buyer who was searching for a mortgage lender in Pennsylvania this week. This should serve as a sample to really drive home the point on how important it is to hire and make sure you get a really good loan officer.

USDALoanInfoPA believes that you should search for an honest mortgage lender, no matter where your house buying adventure takes you.

To get started with our Mortgage Lender example, we find ourselves taking a buyer call with what happened. One of our officers had just got back from vacation and found out that there was a problem with the USDA Loan in Pennsylvania. The lender that the prospect had hired actually made an error  which delayed three days of the process!

NSH MortgageBlockedUnblockFollowFollowingSep 5, 2017Minimum FHA Credit Score For A Home LoanThe minimum FHA credit score for a home loan is 500, however, it is possible to get a mortgage loan with no credit score at all. FHA Credit Score Requirements Falls 60 Points. NSH Mortgage has the wisdom and tools to help you understand the new FHA credit score requirements.Lenders can check non-traditional credit sources and build a credit report if you do not have enough accounts to generate a score. VA home loans require no minimum credit score, FHA minimums range from 500 to 580, USDA loans have a FICO floor of 640, and conforming loans require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.FHA Credit Score Requirement Drops 60 PointsIt is getting easier for borrowers to get a FHA backed home loan. Major lenders will now approve 96.5 percent FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60 point improvement over a few years ago, when FHA lenders required 640 FICO scores or better to get approved.The news comes when FHA loans are in demand. The program’s 3.5% down payment minimum is among the most lenient for today’s home buyers; and underwriting requirements on a FHA loan are flexible and forgiving. FHA loans account for close to one-quarter of all loans closed today.Minimum Credit Score To Get A FHA LoanThere are two minimum score levels for FHA, depending on down payment level.580 with 3.5% down500 with 10% downSome potential buyers have credit issues from their past. With a clean recent history, though, these buyers might achieve mortgage approval despite low scores. This is especially true after extenuating circumstances.These are events outside the applicant’s control. Sometimes, a lender can look past a layoff, one time medical event, or another isolated financial shock that wrecked your credit. A low credit score is not always reflective of the applicant’s credit-worthiness. In these cases, lenders can push through an approval for someone with a low credit score.Keep in mind, though, that lenders may impose higher minimum scores than FHA itself, sometimes as high as 620 to 640.FHA Loans With No FHA Credit ScoreFHA loans are even available to those who have no traditional credit history, that is those who have paid cash for everything and have never opened a credit card, auto loan, or mortgage. According to FHA, lenders must not automatically deny applicants with no credit. Rather, it should gather history for credit like accounts: utilities, cell phone bills, insurance payments, and even childcare expenses.Lenders can approve a loan built on non-traditional credit. A mortgage can be the applicant’s first ever real credit account.Getting A FHA Mortgage After BankruptcyDifferent rules apply according to what type of bankruptcy you went through. Here is the standard waiting periods for Chapter Seven bankruptcies:FHA loans: Two YearsVA home loans: Two YearsConventional mortgages: Four YearsUSDA home loans: Three YearsFHA Loan After A ForeclosureA foreclosure can certainly drag down your credit score. Fortunately, agencies tell lenders it is okay to lend to an applicant after a foreclosure, provided enough time has passed.FHA loans: Three yearsVA home loans: Two yearsConventional mortgages: Seven yearsUSDA home loans: Three yearsWaiting periods are reduced if the event was caused by circumstances beyond the borrower’s control.Minimum Credit Score For A Mortgage: FHA, VA, Conventional, USDAFHA might not be your only choice if you have a lower credit score. It is often the best option, but not the only one, especially if you are buying in a non-urban area or have served in the military.FHA Home Loan: A minimum 580 score is required for FHA applicants with a 3.5% down payment. If you have 10% down, you can get approved with a score down to 500. Keep in mind that some lenders will impose higher minimums.VA Home Loans: Most lenders require a 620 score, although the VA itself does not publish a minimum score.Conventional loans: These are backed by Fannie Mae and Freddie Mac and offered by most lenders in the country. A 620 minimum score is required, with some lenders requiring as high as 620–640 for conventional financing. For those with a small down payment, FHA loan is usually more cost effective.USDA Loans: A 640 score is required for a streamlined approval on a USDA loan. Lenders may approve lower credit scores, but documentation requirements are heavier. The USDA mortgage is available in certain geographical areas around the U.S.Can I Buy A Home With Low Credit?Lenders often look at the complete story, not just the credit score. This can work for or against you. Here are two situations that might play out in real life.Scenario 1: An applicant had a bankruptcy 18 months ago. He has a 660 credit score, high enough for a FHA loan. But, his waiting period is not up. He will not be approved.Scenario 2: An applicant has a 580 credit score due to an one time medical emergency which resulted in unpaid bills and a job loss. She had perfect credit and steady employment before and after the event. She could be approved. The score is not reflective of her true credit-worthiness.These situations play out every day across the country. Just because you have a low score does not mean you cannot be approved for a FHA loan or any other mortgage type.FHA Loans Allow 3.5% Down PaymentFHA loans are an important component of the U.S. housing and mortgage market. They are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners. The agency was formed in 1934 and it exists to provide affordable housing to Americans. Today, it is the largest insurer of mortgage loans worldwide.The Federal Housing Administration does not actually make loans. Rather, it insures loans made by the national banks are providing protection against defaults and loss. To gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.The FHA’s rule book is known as the FHA guidelines and it describes all allowable loan traits, as well as the going terms of a Federal Housing Administration backed loan. For example, FHA guidelines states that home-buyers must make a minimum down payment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure.Guidelines also place limits on the size of a FHA backed loan, which varies by county. In addition, FHA loan limits range from $275,665 for a single family home to $1,223,475 for a four unit home.

The Mortgage Lender wasn’t using the builders lender so what happened is the Builder was charging them $300 per day for every day they did not close.

Bad Credit Mortgage Lenders

The prospective client was getting hit with a $900 bill the good thing is they had a really good loan officer with a really good company and they basically stepped up to the plate and paid that bill!

Home Loan Pre Approval

Here, you might be thinking to yourself well yeah of course they should and you’re absolutely right. They should but, we have been on the end where these lending companies not they’re just like ‘hey we’re sorry this stuff happens it’s not our fault we’ll get the loan done as quick as we can’.

There’s situations, especially in this market right here in Pennsylvania that we’re in – meaning we are in a seller’s market – where, if you don’t close on time and there’s a backup offer that’s better than yours on a pre-owned home.

If that happens, they might just cancel the contract and they let it expire and take the other offer.

If you’re working with a builder or if it’s on a relocation company, there’s a per diem every day if you don’t close and it could wind up into hundreds if not thousands of dollars.

If you’re searching for a Mortgage Lender in Pennsylvania, you need to make sure the lending company that you hire is:

-Good
-Reputable
-Honest
-Understands the USDA Eligibility Guidelines

AND is someone who’s going to do the right thing. USDALoanInfoPA suggests that you always ask for references.

The best place to start is your real estate agent if they’ve been in the business a while they should have a really good relationship with a really good loan officer and mortgage lender company.

Mortgage Lenders in Pennsylvania: Here’s how to Apply for a USDA Loan

Mortgage Interest

Hi everyone this is your Tampa Bay RealtorLance Mohr.

In this video I want to talk about how tochoose a mortgage lender and that I'm going more specifically go over mortgage brokersversus banks versus credit unions.

Tell you the difference between those.

Tell you the pros.

Tell you the cons and then we're going togo over a little bit about what questions you need to ask the lender to make sure youget a really good mortgage lender for you.

So let me start off talking about differenttypes of institutions where you could get home loans.

Through a lot of times when people think aboutbuying a home they think.

Hey, let me just give my local bank.

Bank of America, Wells Fargo a caller whenthey give my credit union their call or what's the whole thing with mortgage brokers? What's a mortgage broker? How does that work? What's the difference between a mortgage brokerand a bank? The difference between that and a credit union.

So I'm going to go over all this.

Let me first start off with credit unionsand you know I'm just going to give you how I see it because I've been in this industryfor over 20 years prior to being in real estate as an agent.

My prior life was a mortgage banker and that'swhat I did for a number of years.

I'm going to give you things how I see.

I'm not a big fan of the credit union.

I think credit unions are great.

They do car loans that you do checking savingsCDs much like a bank.

They have really really good customer service.

They really care about their members and Ithink that's great.

The problem is I don't really think the trainingthere and I'm a person that really really believes in knowledge.

You know I'm not saying that if you work witha credit union or you know someone works with the credit union in or go through a creditunion.

Not saying this about all credit unions.

I'm using this in a general sense.

They just don't have the best training inthe world.

The other problem with credit unions is thepeople who are doing the loans.

The loan offices the credit union a lot ofthem are strict salary.

If they're not strict salary, their salaryplus bonuses and I'll get to this in a little bit later.

So that's why I'm not really a big fan.

Years ago when I used to be in mortgage banking.

I actually used to go to credit unions.

They were some of my clients to get loansfrom because they didn't have all the knowledge and they were telling people they weren'tqualified because they could not work with them.

Now the good thing about credit unions becausethey are so customer service oriented they would pick up the telephone and say hey Lancewe can't do this loan can you do it? So at least they're going to do that.

Banks? Nope, they're not like that.

This is one of the things with banks.

Banks have a lot of a lot of good advantages.

As a matter of fact, if you're going to beusing bond money.

You're probably going to be using banks.

If you need construction loans you're probablygoing to be using banks but banks like credit unions.

They're a jack of all trades.

They're not a master of one.

They're doing the checking, they're doingsavings, they're doing CDs, they're doing car loans, boat loans you name it.

They're doing anything and everything andwhen you tend to go to the loan officers and a lot of banks not all of them.

So again you know if you work with a bankdon't get mad but I know a lot of people that have worked for banks and what happens isyou they get what's called the foot traffic.

They're not going out there hitting the pavementevery day.

A lot of the loan officers where the banksare just sitting in the bank and just waiting for the business to come to them.

They're not going out.

It's sort of like I always look at our industry.

Are you have the lion and you have the gazelle.

Oh, there are a lot of lions with banks butmost of them are gazelles.

They're sitting back.

Again banks pretty much most of the loan officersare on a salary plus a Bonus.

So you know they're not straight commission.

That's one of the things.

Now when it comes to banks again there aretheir pros.

When it comes to banks you have to understandthat they're only one when lending their money.

This could be a problem if you go in and maybefigure on an FHA loan and maybe that's not really very good in their wheelhouse.

They might tell you well you're not qualifiedfor a loan.

They're not going to say well you could probablyget a loan but you just can't get one through us that's the problem because you're onlyusing their money.

If you're a square peg and they have a roundhole you're going to have a hard time fitting in that and that's the unfortunate thing.

You know there's a lot of fallout.

There’s a lot of people banks tend to wantthe cream of the crop buyers.

If you're walking in with 750 credit scores.

Putting down 20% your salary and employeegreat but what happens if you don't fit into that? You may be working with a bank.

You may not know the thing about banks isthey're generally a little higher on the interest rates than say a mortgage broker but they'rea little bit what lower on closing costs because everybody's in-house and that's the nice thingabout banks is their in-house.

Now I will say this if you are going to usea bank.

If you’re going to use a credit union, ifyou are going to use a mortgage broker get someone local don't go with Wells Fargo andgo to some 800 number or you walk into Bank of America and they say oh let me give youthis 800 number Des Moines Iowa and you're what I am in Tampa or somewhere else.

You want someone local.

Out of sight out of mind.

You want someone if things aren't going yourway you could go in there and pound on their desk and say what the heck's going on.

So just keep that in mind but you know themgenerally everybody's in a localized area.

You'll have your underwriter there.

You have your processor there.

They do have some programs that they havea little bit more flexibility on because they could just decide not to sell that but theymight keep it they might keep it in their portfolio but generally speaking the mainthing I would probably rather choose and I'll get into mortgage brokers in just a littlebit.

Why I tend to like mortgage brokers betterbecause a bank their loan officer is getting paid usually a salary plus a bonus.

That’s the opposite.

So, now let’s talk about mortgage brokers.

Mortgage brokers they're basically prettymuch all of them out there.

It's sink or swim.

They don't get paid unless they find a wayto say yes.

So if you walk in like when I was in mortgagebanking and brokering.

If you walked in and I'm with the broker andyou were on an FHA loan program I'm probably going to have one lender for that.

That it's going to be really really focusedon FHA.

If you're VA you're probably going over tothis later.

If you're on maybe a conventional in a fightfor sit down you're over here.

If it's a 20% down you're over here.

If it's a jumbo it's this linker if you goin and maybe you have low credit scores you're over with this lender right here.

So they don't have just their money.

They have everybody's money now.

I know you go into these brokers and they'relike, we have 50 lenders.

Let’s face it most mortgage brokers willonly use two or three.

They'll probably have five to seven at anyone time but they are very efficient because this is all they do and they don't get paidand unless they find a way to say yes that's why I sort of break it up.

Is there are the lions and there are the gazellesand I would have rather have someone that is on a straight hundred percent commission.

That if they don't find a way to say yes theydon't get paid.

That's a huge motivator.

So there is the thing with a little bit differentlike the banks.

Keep in mind brokers broker out so they'regoing to broker out to a bank.

They could even be broken out to the samebank you're getting the quote from.

It's pretty rare but it could happen but they'regoing to have usually a little bit more costly because they're going to have the underwriterin-house and I mean in-house but they're going to charge for that.

They're going to have the processor that therebeen a charge for that.

So they're going to have a little bit morecost but they get their pricing and wholesale pricing not retail like a bank.

It’s usually going to equal out so there'sand if you're looking at going with bond money you pretty much never going to go with a brokerif you're looking to get in a construction loan.

You're probably not going to go with the brokerbut again it's all about choosing the right broker.

It's all about choosing the right loan officerand you know that's what you need to do.

You need to choose the right person.

So I did a video if you want to know how toget the best interest rate I'll put it up above.

You could look at it but let's go over whatyou really need to do when it comes to choosing a loan officer.

You want to always start off with your realestate agent.

First know maybe you could get a recommendationfrom your real estate agent you could get a recommendation from friends, co-workersbut dig a little deeper.

Don't just get that recommendation.

Ask enough to say why you think this loanofficer is so good.

Why are you referring me to this person? What is it about them that makes them so good? You can also go and take a look at sites likeYelp.

Go to their LinkedIn page check their website.

Read up on them but overall loan officersare horrible at marketing so don't hold that against them.

I know when I was a loan officer I wasn'tthe best marketer in the world.

So you know you definitely want to dig a littledeeper and ask him and then when you're talking to them just like an interview in a real estateagent.

You need to ask them two questions at least.

These two questions why should I work foryou and why should I work for your company? Basically, let them tell you what makes themgood.

Let them tell you why you should be workingwith them.

If they don't have an answer to those questionsyou really have to wonder but you know you definitely talk to your real estate agent.

That's a good source and just make sure theloan officer knows what they're doing.

Yeah I mean feel free to ask them what trainingyou have.

I mean I never got this when I was in a loanoffice.

When I was one officer but I had no problemI don't have it when people ask me.

This is a real estate agent if they're interviewingme or asking about my experience or how long I've been in the business or why they shouldwork with me or what makes my company good.

It's not as important as a realtor but whatthe loan officer it's everything if you go into the better business bureau and they don'thave a good rating.

You really have to wonder if that someonewho you want to work with.

So do these and you're going to be good togo but definitely pick loan officer at the end of the day get someone that you trustto get someone that you know is knowledgeable.

Who's been in the business that you feel hasthe proper training because one thing I discuss in my video? How to get a really good interest rate isit's more about the loan program.

If you're in the wrong loan program the interestrate doesn't matter and if you choose a loan officer that doesn't understand differentloan programs and they put you in the wrong one program.

You could have a great interest rate thatone program but it may not be the greatest interest rate you could get or you need.

If you like these videos give me a thumbs-up.

If you want to subscribe to my channel hitthe subscribe button hit the belly button and you'll get notified of my new videos.

I wish you all the best of luck.

If you're looking for a realtor in Tampa BayI would love to help you.

Importance of Hiring a Good Mortgage Lender - A TRUE Story

Usda Loan Calculator

NSH MortgageBlockedUnblockFollowFollowingSep 5, 2017Minimum FHA Credit Score For A Home LoanThe minimum FHA credit score for a home loan is 500, however, it is possible to get a mortgage loan with no credit score at all. FHA Credit Score Requirements Falls 60 Points. NSH Mortgage has the wisdom and tools to help you understand the new FHA credit score requirements.Lenders can check non-traditional credit sources and build a credit report if you do not have enough accounts to generate a score. VA home loans require no minimum credit score, FHA minimums range from 500 to 580, USDA loans have a FICO floor of 640, and conforming loans require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.FHA Credit Score Requirement Drops 60 PointsIt is getting easier for borrowers to get a FHA backed home loan. Major lenders will now approve 96.5 percent FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60 point improvement over a few years ago, when FHA lenders required 640 FICO scores or better to get approved.The news comes when FHA loans are in demand. The program’s 3.5% down payment minimum is among the most lenient for today’s home buyers; and underwriting requirements on a FHA loan are flexible and forgiving. FHA loans account for close to one-quarter of all loans closed today.Minimum Credit Score To Get A FHA LoanThere are two minimum score levels for FHA, depending on down payment level.580 with 3.5% down500 with 10% downSome potential buyers have credit issues from their past. With a clean recent history, though, these buyers might achieve mortgage approval despite low scores. This is especially true after extenuating circumstances.These are events outside the applicant’s control. Sometimes, a lender can look past a layoff, one time medical event, or another isolated financial shock that wrecked your credit. A low credit score is not always reflective of the applicant’s credit-worthiness. In these cases, lenders can push through an approval for someone with a low credit score.Keep in mind, though, that lenders may impose higher minimum scores than FHA itself, sometimes as high as 620 to 640.FHA Loans With No FHA Credit ScoreFHA loans are even available to those who have no traditional credit history, that is those who have paid cash for everything and have never opened a credit card, auto loan, or mortgage. According to FHA, lenders must not automatically deny applicants with no credit. Rather, it should gather history for credit like accounts: utilities, cell phone bills, insurance payments, and even childcare expenses.Lenders can approve a loan built on non-traditional credit. A mortgage can be the applicant’s first ever real credit account.Getting A FHA Mortgage After BankruptcyDifferent rules apply according to what type of bankruptcy you went through. Here is the standard waiting periods for Chapter Seven bankruptcies:FHA loans: Two YearsVA home loans: Two YearsConventional mortgages: Four YearsUSDA home loans: Three YearsFHA Loan After A ForeclosureA foreclosure can certainly drag down your credit score. Fortunately, agencies tell lenders it is okay to lend to an applicant after a foreclosure, provided enough time has passed.FHA loans: Three yearsVA home loans: Two yearsConventional mortgages: Seven yearsUSDA home loans: Three yearsWaiting periods are reduced if the event was caused by circumstances beyond the borrower’s control.Minimum Credit Score For A Mortgage: FHA, VA, Conventional, USDAFHA might not be your only choice if you have a lower credit score. It is often the best option, but not the only one, especially if you are buying in a non-urban area or have served in the military.FHA Home Loan: A minimum 580 score is required for FHA applicants with a 3.5% down payment. If you have 10% down, you can get approved with a score down to 500. Keep in mind that some lenders will impose higher minimums.VA Home Loans: Most lenders require a 620 score, although the VA itself does not publish a minimum score.Conventional loans: These are backed by Fannie Mae and Freddie Mac and offered by most lenders in the country. A 620 minimum score is required, with some lenders requiring as high as 620–640 for conventional financing. For those with a small down payment, FHA loan is usually more cost effective.USDA Loans: A 640 score is required for a streamlined approval on a USDA loan. Lenders may approve lower credit scores, but documentation requirements are heavier. The USDA mortgage is available in certain geographical areas around the U.S.Can I Buy A Home With Low Credit?Lenders often look at the complete story, not just the credit score. This can work for or against you. Here are two situations that might play out in real life.Scenario 1: An applicant had a bankruptcy 18 months ago. He has a 660 credit score, high enough for a FHA loan. But, his waiting period is not up. He will not be approved.Scenario 2: An applicant has a 580 credit score due to an one time medical emergency which resulted in unpaid bills and a job loss. She had perfect credit and steady employment before and after the event. She could be approved. The score is not reflective of her true credit-worthiness.These situations play out every day across the country. Just because you have a low score does not mean you cannot be approved for a FHA loan or any other mortgage type.FHA Loans Allow 3.5% Down PaymentFHA loans are an important component of the U.S. housing and mortgage market. They are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners. The agency was formed in 1934 and it exists to provide affordable housing to Americans. Today, it is the largest insurer of mortgage loans worldwide.The Federal Housing Administration does not actually make loans. Rather, it insures loans made by the national banks are providing protection against defaults and loss. To gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.The FHA’s rule book is known as the FHA guidelines and it describes all allowable loan traits, as well as the going terms of a Federal Housing Administration backed loan. For example, FHA guidelines states that home-buyers must make a minimum down payment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure.Guidelines also place limits on the size of a FHA backed loan, which varies by county. In addition, FHA loan limits range from $275,665 for a single family home to $1,223,475 for a four unit home.