How to tell if a mortgage is USDA

[bgc54]

Are USDA or Rural Dev mortgages labeled as such?

 

[Jo Ann Meyer Stratton]

In Arizona they are not, Deed of Trusts and wording is the same as a conventional loan. Arizona has the Affidavit of Property Value that is required to be filed with the deed for each transfer. If lucky, the title company will write USDA on that. Some times the agents will note USDA loan in the MLS listing. Otherwise agent or seller or buyer has to be contacted to find out for sure. Typically here the USDA loan is several hundred dollars more than purchase price since all closing costs may be included in the mortgage. Also repairs and renovation might also be included in the mortgage.

 

[glenn walker]

In my area they often show as FHA loans , there is no way that I know of to tell a USDA unless you have a copy of the note . On the other hand why does it matter ?

 

[JSmith43]

The selling agent might remember. If the selling agent doesn't remember that, maybe he/she will remember the LO, which would either remember or be able to check the loan records.

 

[redfish]

I think the OP is asking how an appraiser could tell if a client is ordering an appraisal to be used in a USDA loan.

If that's the case the lender client should at least know whether or not their client is taking advantage of the USDA rural housing program.

 

[VolcanoLvr]

USDA loans should be ordered as 'FHA type' assignments in terms of inspections. Both originate with HUD.

Jo Ann .... you state that closing costs can be added to the 'purchase price.' So what price is recorded as the 'SALE PRICE?' And if CC's are added to the 'purchase price', wouldn't those be reflected in subsequent appraisals for other properties as a concession when that home is used as a Comp?

One problem with this situation is CC's are not always known by or revealed to the appraiser ... so if the recorded sales price includes CC's, the market value of that dwelling, and thus potentially other surrounding properties, is artificially increased.

 

[Meandering]

USDA loans should be ordered as 'FHA type' assignments in terms of inspections. Both originate with HUD.

Jo Ann .... you state that closing costs can be added to the 'purchase price.' So what price is recorded as the 'SALE PRICE?' And if CC's are added to the 'purchase price', wouldn't those be reflected in subsequent appraisals for other properties as a concession when that home is used as a Comp?

One problem with this situation is CC's are not always known by or revealed to the appraiser ... so if the recorded sales price includes CC's, the market value of that dwelling, and thus potentially other surrounding properties, is artificially increased.

Exactly why AVMs don't work.

It is optional to add in the CCs to the sale price. Here, the Tax Assessor records the Sale Price that is filled in on the deed to be recorded. The closing agent fills in that price from the HUD1 which is prepared by the lender. Does the lender include the CCs in the sale price??

Well, like most things,

It depends,


.

 

[OSU Beavers]

 

[Terrel L. Shields]

Our mortgages will reveal if it is taken on a particular form. I like to vet the mortgages as often as possible. They provide more data than most agents appear to remember. After they cash their commission checks Realtors tend to reset their zero and all that info goes into their cranial recycle bin. Ive had 2 agents recently tell me a sale was "cash" when, in fact, a conventional loan was made from a local bank.

 

[Jo Ann Meyer Stratton]

The USDA mortgages here include the closing costs, not the purchase price (at least for now, it use to be the other way around). For example a home has a sale price of $100,000, the mortgage amount will be $105,000 or even higher if there is some renovation to be included in the mortgage. I have seen $100,000 purchases with USDA mortgages as high as $125,000 because the new owner didn't like the existing kitchen or wanted new carpet or a second bath, etc.