Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Danielle Engels from Dakotaland FCU. Listen, as she explains some of the new changes for the Rural Development Loan qualifications.  You can reach Danielle at 605.697.5922 or daniellee@dakotalandfcu.com  Her office is located at 2423 6th St., Brookings SD 57006 or on the web at www.DakotalandFCU.com

 Rural Development Loan Qualifications

- Good morning everybody, Shane here from the Brookings Home Team powered by Century 21. I got Dani here from Dakotaland Federal Credit Union. It is 8:15 on the dot and it is Monday morning. So, that means it's our Monday Morning Mortgage Tip. Thanks Dani for coming out.

- Yeah.

- Rearranging some schedules, I know you're scrambling to find some kid daycare here. So, thanks.

- This lovely snow.

- Yeah, yeah.

- School's out again! So, sorry kids, you're gonna be in school 'til July this year. We're gonna talk a little, we're gonna do somethin' a little bit different today and do a little role playing. Rural Development has come out with some, I think, some different definitions of being qualified for their Rural Development loan. So, we thought we would just do a little role playing here real quick. Of course, as when we're done here, feel free to reach out to Dani. I'll have all of her information on the top, on the bottom, or on the sides, wherever your device allows you to see that, and you can reach out to her with any other further questions you have on what we're doing here today. So, what we're gonna do is, I'm gonna be a customer and we'll have some different scenarios, as far as, what I'm doing as far as life is concerned and how I might qualify for a Rural Development loan. So,sound good?

- That sounds great.

- All right.

- So, what we're gonna do first is, I'm a client coming in to look for a Rural Development loan. I just started a new job. So, how long do I have to wait before I qualify for that?

- So, if you have just started a new job and previous to that you were in school--

- Yeah.

- Kind of what they're saying,

- the new income underwriting rules are now, we can no longer count that secondary schooling as being employed. You used to be able to get tax transcripts but now it seems like we have to have one full year of employment history.

- Okay and before it was two year or no it--

- Yeah we would like to average. I mean, ideally it's nice to always average two years. So, now it seems like some of the guidelines are switching to at least one year history. I think ultimately it'll come down to the lenders requirements through their underwriting program too but Rural Development is kind of detailing a little bit of these changes.

- How they go, okay.

- Yeah.

- So, let's say now that I'm a teacher in the school district and I'm quitting that school district but I'm getting a contract for a new school district. Does that mean that they have to wait, or how does that work then?

- So, how we typically will do that is, as long as you have been a teacher for previous one year at least, showing that you have that income, two years is probably nice as well, but at least having that one year of income and if you have a signed contract that you are still gonna be a teacher at another school, then we can use that signed contract and figure out what your annual salary will be and--

- Okay.

- Base the income off of that.

- Now, one of the difference is though, is if I'm a teacher now and I'm completely changing my profession, maybe I wanna be a loan officer.

- Yup, yup.

- Then what happens?

- So, if you have a total change in career then you have to have one year of employment in between that, that's called--

- Okay.

- Like, a change of career. So, if you totally decide you don't want to do anything in that field anymore and you're gonna switch the career path, then you'll have to be prepared and have a year worth of work history.

- Okay, perfect.

- Yeah.

- Well, that's just the basic high level of what has changed here, so, like I said, feel free to reach out to her. She'd be happy to talk to you a little more in depth about how this--

- Absolutely.

- Program works

- and what you qualify for. So, even if it's not Rural Development, maybe there's another program that you would fit just perfect in and she would be the perfect one to find that for you. So, feel free to reach out to her if you have any questions. If you have anything for me, feel free to do the same thing. And also, be sure to share and tag anybody else you think would benefit from this video as well. We'd be happy to talk to them or just get it out there and let them see it. So, that concludes this Monday's, Monday Morning Mortgage Tip. Thanks guys for watching. We'll be back next Monday and hopefully not snowing again.

- Right.

- Thanks again.

- Yes, thanks.

- All right.

- Have a great day.

- See ya, guys, see ya.

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