View
236
Download
0
Category
Tags:
Preview:
DESCRIPTION
Want to buy a home in Maryland, PA or WV but have little money? Check out the USDA Loan. You do NOT need to be a 1st time home buyer. Loan is based on location of the property & max income limits. We cover all the basic guidelines here but to obtain a FREE pre-approval you will need to contact us at challjr@monarchmtg.com or www.monarchbank.com/chall
Citation preview
USDA RuralUSDA RuralHousingHousing
What is Rural Development?What is Rural Development?
The Rural Housing Service (RHS) program provides very-low, low and moderate income residents with better access to affordable housing finance options with little or no down payment or out-of-pocket costs.
What is Rural Development?What is Rural Development?
• Census-based
• US Department of Agriculture
• Guaranteed against loss by USDA
• Pays lender if borrower defaults
• Funded through the 2% Funding Fee
(which can be financed into the loan!)
Advantages & BenefitsAdvantages & Benefits
• Not just for first-time buyers – anyone can qualify (based on income and property restrictions)
• No loan limits (It has Debt to income ratio and income limitations)
• No down payment• Can finance 102% of appraised value
• Low Monthly Mortgage Insurance (0.4% monthly for the life of the loan) FHA financing has a monthly cost of 1.35%, 3 times the amount of USDA!
Advantages & Benefits Advantages & Benefits (cont.)(cont.)
• No cash reserves required• Closing costs can be financed or gifted (gifts are
allowed from relatives who are NOT members of the household)
• Up to 6% seller contributions allowed• In Frederick MD. – ask me about the Down
Payment / Closing Costs Assistance Program• No FHA approval needed• You can use other funding sources, such as
state bond programs and grant programs
Program FeaturesProgram Features
• Owner-occupied principal residence ONLY• 30 year fixed rate with competitive rates• Borrowers must qualify with both income and
geographic requirements.• Non-occupant co-borrowers are NOTNOT permitted• Borrower can be permanent or non-permanent
resident alien, and must have a valid SS#• Cannot own another property (current home must be
sold prior to or concurrently with the new purchase)
• Total Income into household used for Eligibility
Other FeaturesOther Features
• If home appraises for more than the sales price, buyer can add in closing cost up to value
• Student loans must be included in ratios• Reservation of funds required• Appraisals prepared by HUD approved
appraisers.• You don’t need perfect credit but the program
does review credit very closely. This is why reaching out to me now is in your best interest
Credit HistoryCredit History
• Outstanding collection accounts, regardless of age, that are currently delinquent are NOT allowed. Collections must be paid (not including medical collections).
• Any outstanding judgment obtained by the US in a federal court is NOT allowed.
• Outstanding tax liens, no matter their age, are unacceptable.
• BK not allowed in the last 36 months.
Credit HistoryCredit History
If any of these are part of your credit history, you will not be able to obtain USDA financing:•Judgments caused by nonpayment that is currently outstanding or has been outstanding in the past 12 months.•2 or more rent/mortgage payments paid 30 days or more past due within the past 3 years.•Any collections paid in the past 12 months.
Mitigating circumstances may be considered in the event of inaccurate credit information.
Eligible BorrowersEligible Borrowers
• US citizens• Non-US citizens, provided the borrower satisfies
all of the following requirements:• Occupies the property as a permanent
residence; and • Has a social security number; and• Is eligible to work in the United States; and• Is a Qualified Alien with proper
documentation
Income LimitsIncome Limits
• Use of the eligibility website is suggested to obtain adjusted eligible income per household
www.isitUSDA.com
Eligible deductions may be used for income qualification such as:• Household members under 18 years of age• Disabled or handicapped members of household over
18 years of age• Full-time students 18 or older• Individuals 62 years of age or older• Annual childcare expense for children up to 12 years of
age if both parents are employed full-time
Income Limits by CountyIncome Limits by County
---------- Adjusted Income Limits ----------
County 1Person 2Persons 3Persons 4Persons 5Persons 6Persons 7Persons 8Persons
Frederick $ 101,000 $ 101,000 $ 101,00 $ 101,000 $ 133,300 $ 133,300 $ 133,300 $ 133,300
Washington $ 96,150 $ 96,150 $ 96,150 $ 96,150 $ 126,900 $ 126,900 $ 126,900 $ 126,900
Carroll $ 96,150 $ 96,150 $ 96,150 $ 96,150 $ 126,900 $ 126,900 $ 126,900 $ 126,900
Below is an example of the income limits where Curt Hall resides. You can find your local county information going to this link:
www.isitUSDA.com
Property RequirementsProperty Requirements
• Properties must be located in RD eligible areas
• Single family detached – Town Homes• Condominiums/PUDs warrantable to RD guidelines• If on a well and septic, must be tested and meet county
requirements• Termite inspection required – deficiencies must be
corrected• New construction must have warranty• No existing manufactured housing
www.IsItUSDA.com
Property RequirementsProperty Requirements
• Properties cannot be located in a flood zone (exceptions can be made)
• The value of the site cannot exceed 30% of the total value of the property
• Property must have dependable water and waste disposal systems approved by local authorities
• Properties with pools typically are not acceptable (the value of the pool is subtracted from the appraised value)
ResourcesResources
• We handle USDA loans in MD, PA, and WV.• To find out if this is the right program for you,
please call us today. Let’s talk it out and see what we can get you qualified for today.
• Credit an Issue? I have helped many buyers obtain the needed credit score to buy a home. If you want to own, then I will help you reach your dream of homeownership
• Want a FREE USDA report? Email me and put USDA Report in the subject line.
• Most of my buyers using USDA financing end up coming to settlement with less than $1700.
Curt HallLoan Officer – 16+ yrs
Fitzgerald Financial GroupA Division of Monarch Bank
301-788-2982 (Mon – Sat 9am -7pm)challjr@monarchmtg.com
Get Pre-Approved Now @ www.monarchbank.com/chall “Making Home Buying Dreams Come True”
NMLS # 209087
Recommended