100% Financing

Towns eligible for 100% financing:
http://eligibility.sc.egov.usda.gov

Income eligibility:
http://eligibility.sc.egov.usda.gov

USDA Rural Development Home Loans

• Truly 100% Financing – NO Money required

• Buyers shop with mortgage commitment – not “Pre-Qual

• New RESPA rule problems all but eliminated

• Appraisals done under the “old system”

• Encrypted processing and communication system

• All parties work together for a common goal – CLOSINGS

GREAT FEATURES

• No down payment requirements, up to 102% LATV

• No monthly PMI

• Aggressive income Limits

• No limits on Seller Contributions

• Low Fixed Rates at better than conforming pricing

• Automated qualifying option for higher ratios

• No maximum loan amounts

• No asset limit/no minimum reserves

ITEMS OF NOTE:

• USDA loans do require a 2% guarantee fee

• Owner Occupied only

• Purchase only. No cash out allowed

• 29/41 ratio guideline. Automated approval possible to 50% DTI (strong profile required)

• Income Limits: 115% of HUD Median Limits

• One unit properties only. Approved condo and townhomes allowed

• NOT limited to first time homebuyers

BORROWER QUALIFICATIONS

• US citizen or valid green card

• Borrower must have dependable and adequate income and stability of income

• Borrower must have shown a past willingness and ability to meet obligations.

• Borrower cannot be delinquent of have defaulted on a prior rural housing loan or other federal debt. CAIVR's required.

• Minimum 580 FICO required

• Loans are manually underwritten to 41% DTI. Further ratio waivers with 660 credit score.

ELIGIBILITY

• USDA has income limitations and also ineligible origination areas

• USDA has a website that you can access the income and property eligibility restrictions

  http//eligibility.sc.egov.usda.gov

Underwriting Areas of Concern

• Risk Layering

• Payment Shock

• Credit History

• Credit issues in last 12 months

• Foreclosures in last 36 months

• Tax liens and delinquent government debts

• Late rent payments

• Collections

• Areas of consideration (not considered unacceptable)

  * No Credit history

  * BK over 36 months

  * Satisfied judgments or foreclosure with no loss of security completed in last 12 months

Property Requirements

• Property must meet HUD's minimum property requirements

• No manufactured housing

• Condo projects must be HUD, VA, FNMA or FHLMC approved and association must be in control of the project.

• New Construction

• No excess land values

Workflow

• Initial buyers information submitted to ( LYC Mortgage call me for phone number and information. They will be doing this type of loan)

• Credit and income evaluations completed

• Buyer and realtor informed of qualified amounts

• Required forms signed for underwriting submission *

• Property research begins

• Conditional commitment obtained

• Final conditions provided to the buyer and realtor

• Purchase a property !!!

*Underwriting will take 72 hours from the point of submission