Documentation Types
Maximum LTV / CLTV Purchase and Rate Term
Property Type Maximum Base LTV / CLTV
1-Unit 100%1
1 The LTV / CLTV is based on the appraised value; if the sales price is
less than the appraised value, closing costs (not including discount) and repairs can be included in the loan amount up to 100% LTV
points
of the appraised value.
If sales price is greater than appraised value, base loan amount (before
guarantee fee) is 100% of appraised value.
The maximum LTV / CLTV for a rate/term refinance is 100%.
The Guarantee Fee (3.50% for purchase transaction; 0.50% for
rate/term refinance) is calculated on the total loan amount. See Page 2
regarding the calculation of the Guarantee Fee.
If the Guarantee Fee is financed, the actual LTV (based on appraised
value) is a maximum of 103.627%.
Maximum Loan Amounts Number of Units Maximum Loan Amount
1-Unit $417,000
Eligible Borrowers
Permanent Resident Aliens
Non-Permanent Resident Alien if considered a "Qualified Alien" per RHS
All borrowers must have a valid Social Security number.
Ineligible Borrowers
Foreign Nationals
Eligible Property Types
1-Unit Detached and Attached Dwellings
Non-Occupant Co-BorrowersUS CitizensFull/Alternative
CPM-Fannie Mae Approved Condominiums
HRAP-approved FHA and VA approved condominiums and PUDs
Leasehold Properties (w/ 40-year remaining term on lease)
The property must be located in a rural area, as designated by
http://eligibility.sc.egov.usda.gov
.
Properties in new subdivisions may not be included on the website.
Approval for property eligibility must be obtained in writing from the state
or local RHS office.
Additional requirements:
Site value should not exceed 30% of the total value of the property; if
site value > 30% it must be:
o Common for the area as supported by the appraiser; and
o Title must show that property can not be subdivided
Must have access to all-weather surface street, road or driveway
Termite, Water, Septic Certifications required (see appraisal
requirements)
Ineligible Property Types
Ineligible properties include, but are not limited to, the following:
Properties outside the designated rural area (except refinances of
existing GRH or Direct Loans)
Manufactured Homes
New construction properties located in "A" or "V" flood zone unless a
LOMR/LOMA is issued by FEMA .
Properties with an in-ground swimming pool
2 - 4 Unit Detached and Attached Dwellings
Farm residences
Income producing properties
Cooperatives
Condotels
Properties located on an Indian reservation
MI Requirements
Not applicable
Guarantee Fee
The maximum LTV may exceed 100% by the amount of the Guarantee
Fee being financed in the loan amount:
Purchase transactions: 3.50% Guarantee Fee
Refinance transactions: 0.50% Guarantee Fee
The Guarantee Fee can either be financed or paid in cash.
Guarantee Fee
Calculation
Transaction Type Guarantee Fee not
financed
Guarantee Fee
financed
Purchase Transaction
Base Loan Amount x
3.50
%
Base Loan Amount ÷
0.9650
= Total Loan
Amount including
financed Guarantee
Fee
Guarantee Fee =
Total Loan Amount
above X .0350
(3.50%)
Jeff Haley
HALEY REALTY GROUP
919-444-9414
;)
;)
