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Established Contributor
Posts: 878
Registered: ‎04-08-2008

Getting a USDA Guaranteed Loan with BB&T...

[ Edited ]

Hello Everyone, Smiley Happy


I thought I would share my experience this morning with

a meeting I had with a mortgage broker at BB&T concerning

USDA Guaranteed Loans. BB&T is a large regional bank

doing business in the southeastern US.


As luck would have it, I spoke with the Assistant Vice-President

of the branch who happened to be one of the senior loan officers.

So I knew I was talking to the right person.


Here's a brief summary of what she told me:


--- USDA Guaranteed Loans are 100% financing. Smiley Happy


--- Rates right now are 5.375% fixed for 30 years with 0 points


--- No private mortgage insurance (PMI) is required


--- The 2% funding fee can be rolled into the loan or paid separately


--- Middle score of 620 gets you into the best rates, but right

now the underwriters prefer to see a 660. Even though the loan

is guaranteed by the government, BB&T is very conservative.


--- Estimated time from mortgage application to closing is

45 to 60 days. Everyone and their brother is doing cash-out

refinances right now, so the bank's approved appraisers are

really backed up. Appraisers normally allow 5 to 7 days to

turn around an appraisal. With the backlog, it's now 8 - 10 days.


--- BB&T qualifies applicants based on the current income chart

(8 income levels), not the modified chart (2 income levels). They

are waiting until the new changes actually go into effect in March

before qualifying folks with the modified chart.


--- I made a point to mention that some of the major banks are

already qualifying applicants based on the modified income chart,

going to closing and then hanging on to the loans until March when

the USDA's next batch of funding becomes available. Once the loans

are guaranteed by the USDA, they become sellable. They are

then packaged and sold so banks can replenish their cash and

originate new loans. The BB&T loan officer was aware of this fact,

but she explained that their bank is much leaner than the majors

and they don't have the luxury of additional personnel to look after

a portfolio of loans. Although BB&T does hold on to some loans,

for the most part they sell what they originate as quickly as possible.


--- BB&T services all mortgages that they originate. So even after they

are sold, you would still continue to make your payments with BB&T. 


--- If for some reason you run into financial hardship and need to

restructure payments, extend the loan, etc., it's best to do it as quickly

as possible. The longer you wait, the more difficult this becomes. 


--- Of all the government loans that BB&T currently offers (FHA, VA

and USDA Guaranteed Loans), the loan officer stated that USDA is

hands down the best mortgage product they offer. 


OK, I think that's about it. The lady I spoke to was SUPER nice and

very knowledgeable. If you live close to a BB&T branch it's worth your

time to stop by.


Hope this helps. Enjoy the day, Everyone!!! Smiley Happy




"The right attitude is everything"


Message Edited by CanDoAttitude on 01-22-2009 12:56 PM
Established Contributor
Posts: 972
Registered: ‎12-04-2007

Re: Getting a USDA Guaranteed Loan with BB&T...

thank you for this information.  Smiley Happy  So the mid score used should be 660 or higher?  I will be there I think once I pay off more of my credit cards.


Thanks again.

Established Contributor
Posts: 878
Registered: ‎04-08-2008

Re: Getting a USDA Guaranteed Loan with BB&T...

[ Edited ]

Hi granny, Smiley Happy


She said that it's smooth sailing thru the underwriters

if you have a 660 or higher. If you have a 620, they

might ask you some questions and get you to document

some things in writing. That's the only difference.


And I forgot to mention that virtually all of their underwriting

is automated. About 2 years ago they switched to GUS

(guaranteed underwriting system) to ensure that all applicants

are treated as fairly as possible.


EDIT TO ADD: A slight correction. It's the USDA that switched

to GUS about 2 years ago, but BB&T does still underwrite the

majority of its loans thru an automated system.


Of course, with certain exceptions they underwrite manually

on a case by case basis.


So it looks like some lenders are beginning to tighten a bit

even with guaranteed loans. And I'm glad that you find the

information helpful. Make it a great day!!!




"The right attitude is everything"

Message Edited by CanDoAttitude on 01-22-2009 12:05 PM
Message Edited by CanDoAttitude on 01-22-2009 01:26 PM
Established Contributor
Posts: 935
Registered: ‎08-17-2007

Re: Getting a USDA Guaranteed Loan with BB&T...

Showing my ignorance here, but what is USDA loan?  Can you use it for re-fi?


I have checking and car loan at BB&T, but went back to the broker who handled my original mortgage in Oct 2007.


He's working up an FHA refi for me; just got GFE today and posted some info from it for feedback.


Sounds like this USDA would/could  be a better deal, especially since PMI isnt required (I'm paying $198 a month for it now and GFE for re-fi has it at $111) and appears to only be subject to a 2% fee which would be less that expenses associated w/my GFE.  And are you saying the fees can be rolled in so you dont have any out of pocket at or before  closing??


My middle score is 702 and DH's is 686 so that's what our GFE is based on of course.


I'm thinking maybe I should go talk to BB&T??!!



FICOS: TU 732(05-16-16) EQ '08 739( 05-16-16) EX 737 (08-17-16)
Established Contributor
Posts: 878
Registered: ‎04-08-2008

Re: Getting a USDA Guaranteed Loan with BB&T...

Hi rom, Smiley Happy


The USDA is the US Department of Agriculture.

They have a special department that offers what

they call rural development housing loans. And

depending on where you live, "rural development"

can be 500 miles from nowhere or in a small town

with a populaton of 25,000 or less.


The USDA loans that BB&T makes is called a

"guaranteed loan" because the bank makes the

loan and qualifies you but the USDA insures it

in the event of default. Mortgage loans are 100%

financing and no PMI is required. You do pay a

2% fee but it can be rolled into the cost of the loan.


USDA Guaranteed Loans are restricted by income

because they are designed for "moderate income"

applicants. You can click the link below to take a

look at the income levels for your local area.

Just click the state and a pdf chart will appear.


BB&T will qualify you based on this current chart. However, starting

on/about March 20th the income chart will be modified. 1 2 3 and 4

person families will qualify at the 4-person income level. 5 6 7 and 8

person families will quailfy at the 8-person income level.


If you'd like more information there are quite a few threads in the mortgage

forum about USDA Guaranteed Loans. But it's always best to speak directly

with a lender who makes the loans.


I hope this helps you, rom. Lots of people here in the room know about

these loans, so don't be shy about asking questions. Thanks for the post!




"The right attitude is everything"



Established Contributor
Posts: 878
Registered: ‎04-08-2008

Re: Getting a USDA Guaranteed Loan with BB&T...

One last thing, rom:


When you click on the link above and look at the charts,

focus on the "Mod Inc Guar Loan" line. Those are the

income limits that banks use to qualify applicants.


The "Low Income" line is a special state bond program.

I would contact your local USDA office for details, as I

am not familiar with how that works.


Hope this helps. Smiley Happy




"The right attitude is everything"

Established Contributor
Posts: 935
Registered: ‎08-17-2007

Re: Getting a USDA Guaranteed Loan with BB&T...

Thanks for the info!!  Can't really tell if our area is included, so may have to check on that (metro Atlanta, we live in is about 12000...but not sure if included--didnt see it listed)...


and looks like we might  just be over the income least til they change in March..


I think I'll still talk to my BB&T banker tomorrow anyway, just to see.  


Thanks again!!

FICOS: TU 732(05-16-16) EQ '08 739( 05-16-16) EX 737 (08-17-16)
Established Contributor
Posts: 878
Registered: ‎04-08-2008

Re: Getting a USDA Guaranteed Loan with BB&T...

[ Edited ]

No problem, rom. I'm happy to help. Smiley Happy


If you don't see your county and you live in the Atlanta

suburban area, just go by the Atlanta metro numbers.


And yes, it might be more beneficial to wait until after

March. The 4-person qualifying moderate income limit

is $81,850 for the Atlanta area. This should be more

than enough to qualify you and your family.


Once again, I'm glad I could help. Enjoy the day!




"The right attitude is everything"

Message Edited by CanDoAttitude on 01-22-2009 02:11 PM
Message Edited by CanDoAttitude on 01-22-2009 02:33 PM
Valued Contributor
Posts: 1,080
Registered: ‎06-08-2008

Re: Getting a USDA Guaranteed Loan with BB&T...

Here is the eligiblity map. You can type in your address, and it will tell you if it qualifies or not. I use it alot as I find houses we are interested in to make sure they are in the USDA "zones"


We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.

Established Contributor
Posts: 935
Registered: ‎08-17-2007

Re: Getting a USDA Guaranteed Loan with BB&T...

Thank you so much, Kathy!  I'm sure losts of posters will be interested in this great info.....maybe you could post it as a separate thread so others can find it readily.


Sadly,Smiley Sad I'm not in an eligible area so I guess I'll just continue with my FHA re-fi.... which I hope will be wrapped up soon!


Thanks again!!Smiley Happy



FICOS: TU 732(05-16-16) EQ '08 739( 05-16-16) EX 737 (08-17-16)

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