So there have been recent underwriting changes that allowing certain borrowers to forgo the required tax returns and pay stubs to buy or refi real estate. These loans are available to borrowers in many states. Is it stated lending? Well it is not full doc!
Well it is coming and there is no escape. If you are thinking of getting a USDA home loan then you need to know that they are raising the guarantee fee form 2% to 2.75%. So what will this mean to you? It will mean a higher amount owned and a higher monthly payment.
The fee is collected by USDA to keep the program available to borrowers in the future for their home lending needs. If they did not raise the fee the program may not be able to keep guaranteeing loan in the coming years.
San Luis Obispo county has many areas that are USDA eligible like.
The moral of the story is that if you are looking to get a USDA loan do it before they raise up the guarantee fee on October 1st 2015.