Hi kilowatt, 
Yes, it's true that for most of the country the maximum
moderate income charted for a family of 4 is $70,750.
But if you click on the link above and look at Maryland,
the 4-person limit for Baltimore is $88,400. If you click on
California, the 4-person limit for Orange County is $106,950.
Click on Nevada and you'll find that the 4-person limit for
Douglas County is $83,000. And in Austin, TX the moderate
income stated for a family of 4 is $81,800.
So no, the max income is not $70,750 for a family of 4
regardless of location. But for most locations, you are correct.
I can see where you believe that the 115% is already included
in the Moderate Income chart, but that's not what I've been told.
However, I'll be checking back with my mortgage broker tomorrow
to double check on this (since today is a holiday). Obviously, it's
important that we get the information correct. So I'll let you know
what I find out and then report back to the forum sometime tomorrow.
Thanks for your question, kilowatt. Enjoy the evening!!!
CanDo
'"The right attitude is everything"
That's a fair point, WannaHouse.
However, the vast majority of questions regarding
USDA loans in this forum pertain to guaranteed
loans from banks, not direct loans from the USDA.
Basically, people should follow the money.
If you want to know about the Direct Loan
program, contact your local USDA office.
If you want to know about the Guaranteed Loan
program, speak directly to a lender who makes
those loans. We do our best to share information as
we understand it, but sometimes things fall between
the cracks. So at the end of the day, it's always best
to speak with the people who actually make the loans.
As I posted yesterday, I'll be speaking with my
mortgage broker later today to follow up on kilowatt's
question re moderate income limits for Guaranteed
Loans and to see if there are any further updates.
I'll post later this evening to share my findings with
everyone.
Make it a great day!!!
CanDo
"The right attitude is everything"
Hi kilowatt,
First of all, Happy Inauguration Day!
As promised, I'm getting back to you with an answer to your question
regarding modified income limits for the Guaranteed Loan program.
I also took the opportunity to ask a couple of other questions that came
up in the forum recently.
It took a while for my mortgage broker to get back to me because they
are SWAMPED right now with refis and new loan applications, but I
asked her three (3) questions:
1) Do the moderate income limits as stated on the charts already include
the 115% adjustment, or do applicants need to multiply by 1.15 to
determine the true income limits in their area?
2) The Guaranteed Loan program is designed for Moderate Income families,
but there is a "Low Income" entry on the income chart. Is that a separate
program, or can low income families apply as well?
3) Is the USDA still on track to implement changes to the income charts
by March 20th?
Answers:
--- The answer to question 1 is YES. The income limits as they appear on
the charts already allow for the 115% limit in any given area. Previously,
I was told that they did not allow for this and that applicants should multiply
by 1.15 to determine the true maximum limit that applied to them.
So you were right and I was wrong, kilowatt. My apologies to you and everyone
in the room. It was an honest mistake.
--- The answer to question 2 is YES and NO. Let me explain:
Although the Guaranteed Loan program was originally designed for moderate
income households, there are certain states that allow low income families to
participate in the program thru the use of state bond funds. As we all know,
not all states are in great fiscal shape right now. So depending on where you
live, your state may or may not allow low income applicants to participate in
this program. Since this component of the program applies to low income
families, you are advised to contact your local USDA office for details and to
see if your state has the bond money available to fund this program.
Stated more simply: If your state has the bond funds available, then YES,
low income families can apply. If your state doesn't have the funds, then NO,
they cannot.
--- The answer to question 3 is YES. As of right now, the USDA is still on track
to implement the modified income changes on or about March 20th, 2009. My
mortgage broker also pointed out that more banks are starting to close USDA
Guaranteed Loans before the March 20th date. They'll simply hold them in their
portfolio until the USDA gets their new batch of funding to properly insure them.
Once they are insured, the loans can be packaged and sold. This will allow
banks to replenish their cash so more Guaranteed Loans can be originated.
So there you have it, kilowatt. And once again, please accept my apologies if the
information I previously shared complicated your loan application in any way. Like
everyone else here, I want the mortgage process to go as smoothly as possible.
Have a great evening, Everyone!
CanDo
"The right attitude is everything"
Thanks for the followup CanDo.
I am not currently in search of a mortgage myself, but I did tell my daughter and son in law a few weeks ago that they would not qualify for a USDA guaranteed loan based on thier income of $75,500.00. After reading your earlier post I was just concerned that I had possibly misled them. Again, thanks for following up on it for us.
Take care.
Kilowatt
You're welcome, kilowatt. I'm happy to help
where I can.
And one clarification: By law, all states are allowed to participate
in federal loan programs as long as they have adequate funding to offer
them to qualified applicants....especially when the money is in the form
of bond revenue. I didn't want to leave the impression that some states
can take part in the loan programs while others can not. But obviously,
there must be enough money available for this to happen...
CanDo
"The right attitude is everything"