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 (100% Financing)
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: (100% Financing)
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 for 100% FINANCING
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 for 100% Financing
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
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Risk Layering
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Payment Shock
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Credit History
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Credit issues in last 12 months
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Foreclosures in last 36 months
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Tax liens and delinquent government debts
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Late rent payments
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Collections
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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
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Property Requirements for 100% Financing
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Property must meet HUD's minimum property requirements
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No manufactured housing
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Condo projects must be HUD, VA, FNMA or FHLMC approved and association must be in control of the project.
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New Construction
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No excess land values
Workflow
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Initial buyers information submitted to ( LYC Mortgage call me for phone number and information. They will be doing this type of loan)
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Credit and income evaluations completed
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Buyer and realtor informed of qualified amounts
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Required forms signed for underwriting submission *
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Property research begins
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Conditional commitment obtained
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Final conditions provided to the buyer and realtor
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Purchase a property !!!
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*Underwriting will take 72 hours from the point of submission
100% Financing still exists
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