USDA Rural Housing 100% Financing

It is hard to beat the flexibility and great rates of HomeStar Financial Corporation's USDA Rural Housing Loan. These programs are geared toward homebuyers who desire to live in "rural areas" and who have little to no money for downpayment. USDA Rural Housing Loan programs offer flexible, common sense underwriting guidelines, relaxed credit requirements, NO PMI (private mortgage insurance), the ability to finance closing costs into the loan amount, lenient seller concessions, and rates that are comparable to, if not better than, conventional fixed rate mortgage programs.

Your first step should be to call a HomeStar Financial Corporation Mortgage Pro at 404-597-5662 to see if you are in an area where properties may be eligible for USDA Rural Housing Loans. A HomeStar Financial Corporation USDA Rural Housing Loan Mortgage Pro will research your property and determine if both you and the property will qualify. You may also check the USDA web site to confirm the property eligibility and income limits for the subject property and area (you will see those links on the left navigation). In today's shrinking credit market, the USDA Rural Housing Loan program is one of the best 100% mortgage financing options in the marketplace. Give HomeStar Financial Corporation a call today for more details or Apply Today! 

  USDA Rural Housing Loan Program Benefits:

• Loan Amount Can always be 100% of appraised value - appraised value can only be exceeded by "Guarantee Fee" for a total of 102% of appraised value
• One time Guarantee Fee of 2% of loan amount for all purchases
• The Guarantee Fee may be financed into the loan in ALL cases
• The Guarantee Fee is  ½% for USDA Refinances
• No minimum cash contribution
• The Loan Amount is NOT LIMITED to lower of appraised value or purchase price
• Customary closing costs and repairs can be financed up to the appraised value, AND the Guarantee Fee can be financed into that amount
• 30-Year Fixed Rate Loan - Market Rates!
• No Prepayment Penalty
• No reserves required
• No maximum seller contribution or gift amounts - Purposes are limited
• Not limited to first-time homebuyers  
• Homebuyer Education Certificate required for First Time Home Buyers
• Primary Residence Only - Single Family/Owner Occupancy Required
• New and existing homes allowed
• Property must be located in eligible "rural" area - Check property eligibility here
• Non-U.S. citizens are acceptable with appropriate supporting documentation
• HomeStar Financial Corporation is the Direct Lender

  USDA Rural Housing Loan Income and Debt Ratio Requirements:

• All household incomes are verified
• Adjusted annual household income cannot exceed the moderate income limits for the proposed subject property's area income limits - Check income eligibility here
  •  A $480 adjustment to household income per each child less than 18 or "18+ and full-time student" - family's size and child care considerations may increase qualification limit if deductions are applicable
• Overtime, bonus, commissions and self-employment income can be used with 2-year averaged history
• Non-taxed income may be grossed-up by lender with supporting documentation
• Conservative qualifying debt ratios of 29%/41%; 29% of Principal, Interest, Taxes and Insurance (PITI) and 41% of Total Debt to Income; 31%/43% if home is built to 2000 Energy Code standards
• No maximum loan limit - borrowers income and debt ratios become the limit
• USDA Rural Housing Loan can be used to refinance existing USDA Loans
• Non-occupant co-borrowers or co-signers are not allowed

  USDA Rural Housing Loan Credit Requirements

• Credit score of 620+ considered acceptable, regardless of trade line information
• No verification of rent required with 620+ credit score
• Collection accounts are not required to be paid with 620+ credit score
• No derogatory credit explanations required when credit score is 620 or above
• Debt ratios can be exceeded with USDA concurrence and documented compensating factors  
• Deferred student loans must be counted in debt ratios regardless of length of deferment
• "Indicators of unacceptable credit" - more than one-30 day slow pay within the last 12 months, foreclosures less than 3 years old, a tax lien or delinquent government debt with no arrangements to repay, judgments outstanding within 12 months, more than 2 slow rental payments within 12 months, accounts converted to collection in last 12 months, etc.
• Chapter 7 bankruptcies must be discharged for 3 years without proof of extenuating circumstances
• Chapter 13 bankruptcies must be discharged for 1 year without proof of extenuating circumstances
• Foreclosures must be elapsed for 3 years without proof of extenuating circumstances
• Non-traditional credit is acceptable - A minimum of 3 references are required with no additional risk factors
• Credit Waivers are allowed for derogatory credit if documented circumstances were beyond customers control, temporary, and have been removed