• Like
USDA Mortgage Presentation
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

USDA Mortgage Presentation



  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. USDA Rural Housing Mortgage Ed Gillespie, First Priority Financial (916) 849-9200
  • 2. USDA Section 502 Guaranteed Rural Housing Loan Program
    • Providing home ownership opportunities to moderate income households in rural areas.
    • 100% LTV
    • 3.5% Guarantee Fee (purchases)
      • October, 2011: 2% initial GF and 0.30% annual
    • 30 year fixed rate loan
  • 3. Property and Income Eligibility
    • http:// eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
    • Property must be in a designated rural area <click> “ Property Eligibility –Single Family Housing”
      • If property eligibility is ‘undetermined’, obtain written confirmation from the local USDA office of property acceptance.
    • Household income maximums; income of ALL occupants is included <click> Income Eligibility – Single Family Housing
  • 4. Household Income Eligibility
    • Not the same as qualifying income
      • Non-borrowing spouse
      • Must include sources not eligible as qualifying income.
    • Household income maximum is determined at the county level
    • All income sources for all persons living in the home must be included
  • 5. Property Eligibility
      • 1-unit properties
      • Borrowers cannot own other homes
      • Cannot be the possibility of any income source from land or buildings
      • Geographic differences
        • Generally, can’t include the value of swimming pools for lending purposes
        • Incidental outbuildings – maybe, if no value given
  • 6. USDA Loan Type
      • 30 year fixed rate – no other options
      • LTV is based on value only, not sale price
      • Maximum 100% LTV (base, before Guarantee Fee)
        • 3.5% guarantee fee (3.62694% if financed)
          • As of 10/11: 2% initial GF and 0.30% annual
      • The only refinances allowed are R/T transactions of existing USDA loans
        • 1.00% Guarantee Fee on refinances
  • 7. Credit Reports
    • Borrower names on credit report must exactly match how they take title.
    • Credit Scores
      • All borrowers must have a minimum representative credit score of at least 640.
  • 8. Credit items
    • Collections (and charge-offs, if they show a balance outstanding): all must be paid by closing.
    • Judgments and tax liens: none currently outstanding
    • Late consumer payments (revolving and installment): Overall credit history (including histories beyond the past 12 months) must not show any pattern of late payments or other derogatory credit. Any 60-day consumer lates should be isolated events.
    • Housing payments: no 30-day lates in the past 12 months and no more than 1X30 in past 24 months
    • Loans not meeting the bankruptcy, foreclosure, or short sale/pre-foreclosure dates as listed below are not eligible.
      • BK: 3yrs (multiple BKs 7)
      • Foreclosure/short-sale/deed-in-lieu: 3 yrs
  • 9. Questions? Assistance? Ed Gillespie, First Priority Financial (916) 849-9200