Spring, TX -- (SBWire) -- 12/09/2015 --According to the Mortgage Bankers Association, conventional home loan delinquencies soared beyond 18 percent in the state of Texas during the recent recession. Though these occurrences had tapered off to just under 16 percent upon last report, lending institutions remain somewhat gun-shy in regards to doling out home loans to current applicants. With this in mind, AMCAP Mortgage - North Houston spokesperson Gerry Nicodemus has launched the agency's guide to USDA home loans.
Nicodemus elaborated, "In an effort to promote development in rural areas, the United States Department of Agriculture established a program offering an array of loans to both current and potential property owners for single family homes, multiple family units and other types of housing outside the confines of general city limits. As long as a property lies within the USDA's approved areas and loan applicants are eligible based on the lenient guidelines in place, this option can be used for a wide variety of purposes. Our guide is designed to help those in our area better understand this program and its benefits."
According to the AMCAP Mortgage - NHB website, two forms of USDA loans are available: direct and guaranteed. Guaranteed loans offered through this program are meant for families with higher incomes falling into the 80 to 115 percent range of the local area median income. These are provided via private lenders on behalf of the USDA. Direct loans are afforded through the USDA Regional Service Center itself and are offered to borrowers whose household income falls below 80 percent of the AMI.
Though applicants must typically have a credit score of 640 or better in order to be eligible, a manual underwrite may be granted in certain circumstances. A 29 percent debt-to-income ratio is additionally required. One signature characteristic of USDA Loans is the lack of a required down payment; at the same time, borrowers tend to receive lower interest rates with this type of loan. Both 15 and 30-year fixed-rate options are currently available in Texas.
Said Nicodemus, "USDA loans tend to be much easier to qualify for than some other options, and potential borrowers may be surprised to learn just how many available properties are considered eligible for this program. Our new guide offers a wealth of information, links for determining property and income eligibility as well as numerous other resources. We encourage anyone interested to browse our website and contact us with further questions."
About AMCAP Mortgage - NHB
Using processes tailored specifically to the unique circumstances of each potential borrower, the staff of AMCAP Mortgage - NHB strives to help clients find the loan most suited to their needs. As a private lender, the institution offers USDA, FHA, VA and conventional loans along with a number of other alternatives to help clients realize their dreams of home ownership.
AMCAP Mortgage - NHB Launches USDA Home Loan Guide Aiding Potential Borrowers
Providing in-depth information and links to additional resources is key to helping local residents find lending solutions best suited to their unique needs, publishes texasusdaloans.org