USDA Direct Loan Requirements: Buy A House w/ 1% Interest and No Down Payment

USDA Direct Loan Requirements and Eligibility. Have Questions About USDA Loans? Call Us 337.476.2623 or visit bayou-mortgage.com/home-buyer... to check your elgibility.
In today's video, we dive deep into the USDA Direct Loan Requirements, specifically the USDA Direct Single Family Housing Program. This program is a game-changer for potential homebuyers with low to very low incomes. We'll explore the benefits, income limits, and application process.
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Timecodes:
(00:28) - USDA Direct Program Intro
(02:13) - USDA Direct Eligibility Criteria
(04:21) - USDA Direct Income Limits
(05:56) - USDA Direct Rates & No Down Payment
(07:53) - Potential Drawbacks
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Channing Moore
Owner, Bayou Mortgage NMLS # 1845349
NMLS # 1235512
Call or Text: [phone]
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791 Bayou Pines East Unit 5
Lake Charles, LA 70601

[@Mid.Yamaha]

What's up man, I'm a USDA Direct Loan Packager, let's do business!

[@TheFannyFashion]

Could you help me ?

[@peacebeteal]

You just helped me big time. Thank you.

[@Wael4You]

Hi
You doing really great job to help others really thank you
Please I send already my application and the application now is active after I send all the supporting documents but I received something is call 180 days later can you explain more? What is it and what I can do as next please?

[@missybrown5166]

Thank you 🙏

[@bayoumortgage]

Welcome

[@stevenmcquade8613]

Thanks

[@bayoumortgage]

Welcome

[@RomaKTLlll]

Great video. Which income to use for self employed, gross income or net income?

[@cakeandrealestate]

Eligibility is based on adjusted household income. Self-employment income is based on your P & L and adjusted gross income.2 years' tax returns will also be required.

[@bayoumortgage]

Self Employment income is net income and typically a 24 month average.

[@christineweber8480]

Thank you! I live on survivors benefits 1,600 a month for me and my 8 yr old daughter. I do door dash if I need extra cash but it's not steady income. Do you think I may still qualify?.😅

[@N.W.Oke.]

I don't see the links in the description

[@bayoumortgage]

Which one are you looking for?

[@jenjen5184]

Do they have a single close construction loan with usda direct?

[@bayoumortgage]

I’m not sure on direct. Guaranteed has one available though they can be difficult to find.

[@2Corinthians5.7]

Hello. You mentioned that it could take up to 90 days to close, but wanted to see if there is a time frame where you have to be told if you are approved or denied? Thanks

[@bayoumortgage]

I am not sure because as a lender it's not a program I can offer. I imagine it can take a while since they likely have a ton of applicants.

[@225avenues]

It could take up to 6 months to get a COE right now. Certificate of Eligibility is what they use instead of a preapproval letter. Also, there are a number of differences from a traditional conventional or fha loan but the interest rates are usually so much better that it's worth the wait. The interest rate they offer also changes at the 1st of every month until you get it locked in after getting your purchase agreement on a home. I'm working with a client on a home in Baton Rouge right now and I've had a client but a home in Baton Rouge with this program before. One of the best programs if you qualify but it is a process that takes way longer than a normal loan. This is a REALLY OUTSTANDING program for new construction as well! Let me know if I can help! I've been a REALTOR since 2007

[@bayoumortgage]

Thanks for this reply. Good to hear from someone with direct experience.
@@225avenues

[@user-iv2vy7ri6i]

I want to build a home does usda do that

[@kendrairvin8350]

yes they have construction loans

[@bayoumortgage]

USDA has constructions loans but they are hard to find a lender for. Pretty tough to get through underwriting as well.

[@satekeeper]

did these numbers change for 2024?

[@vanyathebearable1271]

yes, it's 4.5% interest now.

[@KS-nk3gy]

A couple of important questions I have not seen answered anywhere about these loans. The income limits are based on adult household members. What happens if you get the loan/house as a single and then a couple years down the line get married or just someone else moves in because of some random hardship? Another thing that seems to be skipped over a lot when talking about these loans is the maximum asset limit. If you have any non-retirement assets above a threshold (I haven't figured out how they calculate the threshold) then you are required to use those assets in the purchase of the house. So if the limit they set is 10k and you have 12k in the bank you will be forced to use 2k in the purchase of the home. Kind of nullifying the whole "no down payment required" thing if you have a decent chunk of savings for whatever reason. But related to that, how do they take into consideration of a joint bank account, when the other person on the account will not be a member of the home?

[@bayoumortgage]

Once you close on the loan it won't matter who lives in the home. It's typically 20% down. If you have enough for 20% you aren't eligible. This particular program is aimed for extremely low-income families, so it may have lower requirements.

[@erescue1]

The asset limit is $15000. My bank statements showed I had $21K in my checking account. The approval was based upon my contributing $6K of my own funds. Again, ALL THAT IS EVER DISCLOSED IS "NO MONEY DOWN".