Can you get a mortgage loan if you are a temporary to permanent employee?

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I am applying for a USDA Rural Development loan but I am through a temp agency for another month or 2. Will that be ok or will I have to be permanent to get the loan?

4 comments to Can you get a mortgage loan if you are a temporary to permanent employee?

  • cecarter7556@sbcglobal.net  says:

    requirements are different for different lenders. Most lenders require you to be a permanent employee unless you have a history of working temporary jobs that produce enough income to amortize your loan. However USDA Rural Development of different requirement than regular mortgage lenders. I guess is you will have to wait until you go permanent unless your job will give you a letter certifying that you will go permanent

  • oompa  says:

    Above advise is false and 100% erroneous. You should be fine if your w-2’s reflect enough income in order for you to qualify (they use a debt to income ratio of usually 50%)
    If you have to state your income then you may have problems. you may want to contact that department and ask them directly

  • yahoofish  says:

    The second answer, in my opinion, is getting on the right track. There are thousands of lenders who would love to take your money. It may seem like they’re giving you money, but they’re really making a truck load of money on your loan. So, a person in your situatoin is most likely going to qualify for a loan, but you’ll most definately not get the best rates…and you’ll most likely have to pay points.

  • W. E  says:

    Normally you need to be full time, since a Verification of Employment will be sent to your present employer. IF they fill it out as a temp worker, that will hender you.

    Going to this website will be helpful to you, and you can see the income ragne and area the property can be in. If you have applied already, ask your broker that you are working with. The UDSA Rural program is a awsome program and Chase is one of the Lenders that will do the USDA Rural Loan. The UDSA Rural Program does have a DTI issue (Debit to Income Ratio). The rates are really really good.

    Welcome to the USDA Income and Property Eligibility Site

    http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

    1. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.
    To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA’s home loan programs.
    To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected.
    To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected.
    To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program.

    Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household’s adjusted income. These loans are commonly referred to as Section 502 Direct Loans.

    2. Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

    Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant’s income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Elderly and disabled persons applying for the program may have incomes up to 80 percent of area median income (AMI).

    Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

    Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.
    Approval: Rural Development officials should make a decision within 30 days of the Rural Development office’s receipt of the application.

    Section 502 Guaranteed Loan Program:
    1. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

    Eligibility:
    Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
    Approved lenders under the Single Family Housing Guaranteed Loan program include:
    Any State housing agency;
    Lenders approved by:
    HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
    the U.S. Veterans Administration as a qualified mortgagee;
    Fannie Mae for participation in family mortgage loans;
    Freddie Mac for participation in family mortgage loans;
    Any FCS (Farm Credit System) institution with direct lending authority;
    Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.
    Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.

    There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

    Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

    Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

    Most People think that this is only for the low income. It is not, there is a Very Low Income range, Low Income Rang, Med Income Range and High Income range. I have seen a family of 3 making a total of 60,000 get this. Good Luck to you.

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