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
Borrowers cannot own other homes
Cannot be the possibility of any income source from land or buildings
Generally, can’t include the value of swimming pools for lending purposes
Incidental outbuildings – maybe, if no value given
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
Borrower names on credit report must exactly match how they take title.
All borrowers must have a minimum representative credit score of at least 640.
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
Questions? Assistance? Ed Gillespie, First Priority Financial (916) 849-9200