Govt Loan Training Usda Fha Va B Wills

WR STARKEY
Mortgage University

FHA/VA/USDA

WELCOME TO
GOVERNMENT LOANS 101

We will go over informative and up to date guidelines on
government loan programs. With the affordability of these
products and this market, we have seen a large increase in
buyers that are looking for low down payment options that are
not as credit restricted as conventional home loan programs.

GOVERNMENT LOAN PROGRAMS

USDA U S Department of Agriculture

FHA Federal Housing Administration

VA Department of Veterans Affairs

KNOW THE DIFFERENCE
Required Down MI and Funding Seller
Loan type
Payment Fee Contributions

USDA ZERO -0% 2%* Up to 6%

1.75% upfront
FHA 3.5% Annual MIP Up to 6%
varies**

4% plus
Zero/0% for 2.15% to 3.3%
VA $1650 in
Eligible Vet 0% - Disabled vet
Vet non-allowable

*Amount shown is for purchase loans only. **Amount is for purchase loans only, the Annual MIP varies based on the loan , contact your licensed Mortgage Professional for more details. Designed
by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of financing. All
borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are subject to
change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 07.25.12C

CREDIT SCORE REQUIREMENTS*
•580 FICO - restrictions apply**
FHA

• 640 FICO
USDA

• 620 FICO
VA

*Credit Score thresholds for loans currently offered by WR Starkey Mortgage. Other lenders may offer FHA loans with credit score thresholds above or below
WR Starkey Mortgage’s. **580 FICO applies to certain FHA transactions, for qualifying details contact your licensed mortgage professional.

Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C

BASIC CREDIT QUALIFICATIONS
• BANKRUPTCY – MUST BE 2 YEARS FROM DISCHARGE
• FORECLOSURE – MUST BE 3 YEARS FROM DATE OF FC
• JUDGEMENTS/LIENS – MUST BE SETTLED OR PAID PRIOR TO CLOSE
• DELINQUENT FEDERAL DEBTS – MUST BE CAUGHT UP &/OR PAID OFF
• MUST VERIFY ANY NEW DEBTS OPENED PER INQUIRIES
• CREDIT IS NORMALLY RE-PULLED PRIOR TO CLOSING
• DISPUTED ITEMS MUST BE CLEARED
• OLD COLLECTIONS/SLOW PAYS
• If over 24 months usually ok unless disputed
• 01-24 months old – uw discretion
• Medical collections usually ok unless disputed


FHA
VA

USDA

SFR, Condo, Town Home,
2- 4 Unit (excludes USDA)
No Manufactured Homes


USDA FHA VA
 Appraisal must be done by  Appraisal must be done by  VA assigns a LOCAL VA
LOCAL FHA roster LOCAL FHA roster appraiser
Appraiser Appraiser
 Pest Inspection is required
 Must meet thermal  If appraisal has required
standards repairs, must be done  If Appraisal has required
before closing (exception repairs, must be done
 Septic/Structural/Pest may be made on a before closing
inspections may be foreclosure)
required  Septic Inspection will be
 Septic/Structural/Pest required
 May be able to roll cost of inspections may be
repairs into loan amount if  Structural Engineer Report
required may be required
repairs are completed prior
to closing  Lead base paint must be  VA UW issues a Notice of
cleared Value
 In ground pools will affect
value  90 day rule on flipping


REPAIRS REQUIRED BY LENDER
• House must be livable on all types of home loans
• No major renovation needed
• Built in appliances must be present
• Foundation must be structurally sound
• Safety concerns must be addressed
• House must be insurable
• House built before 1978 may have lead based paint issues
• House must have a source of heat
• Utilities must be turned on for appraisal
• All weather road or driveway – private roads are ok
• Acreage ok per comparable sales in area
• USDA (acres 2+) if land value is more than 30% of total value
then land cannot be subdivided

HTTP://ELIGIBILITY.SC.EGOV.USDA.GOV

Eligibility Income includes gross income of borrower,
co-borrower and any other adults in the household
regardless of whether they are on the note

Qualifying Income includes income of only the
borrowers who will be on the note

Earned income of a minor is not included in Eligibility or
Qualifying Income ; however, child support or income
earned by a spouse who is a minor is included


Non-Occupying
Self Employed
Income must be Co-borrowers
borrowers are
stable and have are allowed to
eligible with a 2
a continuance help with Debt
year history of
for the future to Income Ratio
filing taxes
requirements


Borrower must be in
same line of work for 6 Return to
months or on current Workforce is ok
job for 6 months

Social Security
Stable continuing
& Disability
income is required
Income is ok


ASSETS
Tax Refund

Cash on hand is Gift Funds
NOT acceptable allowed from family members,
even for earnest employers, church, municipality or
family friend
money!!!

Secured Loan


USDA FHA VA
 6% Maximum Seller contribution  Up to 6 % Maximum Seller  4% Seller contribution
contribution
 Can roll in closing costs to 100% of  Seller can pay survey above 4% of
appraised value  Buyer must make their 3.5% down closing costs
 May receive a gift from family for full payment from own funds or gift from
family  Seller must pay for non-allowable
amount of closing costs costs for Vet that total around $1650
 Gift cannot be from a member of  Can use community seconds grant to
household pay for closing costs if borrower  Can use community seconds grant to
qualifies pay for closing costs if borrower
qualifies
 May receive a gift from family for full
amount of closing costs  May receive a gift from family for full
amount of closing costs
 Gift of Equity when buying from
family
 First Time homebuyer programs


WAYS TO PROMOTE A LISTING
ON THE DOT
SOCIAL MEDIA
DESIGNS

Open House
Facebook
flyers

Property
Twitter Listing
Postcards

Database
LinkdIN
Mailings

Joint
Active Rain
Marketing


Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. Revised 1.26.11C

Govt Loan Training Usda Fha Va B Wills

Govt Loan Training Usda Fha Va B Wills

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