Program Highlights
- 100% Financing. No down payment required
- Income Limits: 115% of U.S. median
- Maximum loan up to 102% of appraissed value
- Guarantee Fee may be financed into loan amount regardless
of appraised value
- One-Time 2% Guarantee Fee for Purchase Transaction
- 0.5% GuaranteeFee for Refinance Transaction
- Loan can include closing costs if appraisal is higher than sales
price
- No monthly Mortgage Insurance Premium
- No Case Reserve Requirement
- Borrowers do NOT have to be first-time homebuyers
- No limit on seller contributions
- 1 day USDA compliance review
- Purchase Transactions (New or Existing Construction) Interest Rate and Terms
- Existing USDA loans may be refinanced
§ 30 year fixed-rate, fully amortized loans only
§ Interest rate is negotiated between the lender and borrower
§ 2/1 buydown – qualifying ratios at start rate with compensating factors
§ Property must be located in an eligible rural area.
§ Site value should not exceed 30% of the total appraised value
§ One-unit, non-farm, primary residences, including single family dwellings, condos, and PUDs
§ Income producing properties are not eligible.
§ Manufactured homes are eligible if unit is 12 months old or newer and never occupied. Unit must be placed on permanent foundation and meet all required of FMHCSS. A builder’s warranty of no less than one year must be issued to the home buyer. *(Wells
§ Qualifying ratios are 29/41. Higher ratios considered with strong compensating factors.
§ Credit score of 660 or higher considered a strong compensating factor. Credit score of 700 or above considered excellent compensating factor
§ Source of income must be adequate and dependable, typically with 24 month history
§ No more than one-30 day late payment in the last 12 months
§ Bankruptcies to be discharged for at least 36 months