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Huron Valley Financial
Presents
USDA RURAL
DEVELOPMENT FINANCING
Victor Bals
734-417-2115
Vic@HVFloans.com
www.HVFLoans.com
WHAT IS RURAL DEVELOMENT?WHAT IS RURAL DEVELOMENT?
 Census-basedCensus-based
 US Department of AgricultureUS Department ...
WHO CAN ORIGINATE USDA LOANS?WHO CAN ORIGINATE USDA LOANS?
 Approved lender with HUD, VA, FannieApproved lender with HUD,...
LOAN PURPOSELOAN PURPOSE
 Purchase new constructionPurchase new construction
 Purchase existing homePurchase existing ho...
REASONS NOT USEREASONS NOT USE
RURAL DEVELOPMENTRURAL DEVELOPMENT
FOR A BUYERFOR A BUYER
 Geographical LimitationsGeograp...
INCOME QUALIFICATIONSINCOME QUALIFICATIONS
http://eligibility.sc.egov.usda.govhttp://eligibility.sc.egov.usda.gov
 Househ...
ADJUSTMENTS TO INCOMEADJUSTMENTS TO INCOME
 $480 / Year per minor or full-time student$480 / Year per minor or full-time ...
CountiesCounties 11
personperson
22
personperson
33
personperson
44
personperson
55
personperson
66
personperson
77
person...
GEOGRAPHICAL QUALIFICATIONSGEOGRAPHICAL QUALIFICATIONS
 ALL Livingston CountyALL Livingston County
 Most of Ingham Count...
BENEFITS TO BUYERSBENEFITS TO BUYERS
 Finance 102% of appraised value, without gettingFinance 102% of appraised value, wi...
Sales Price:Sales Price:
Appraisal:Appraisal:
Seller Paying:Seller Paying:
EMD:EMD:
Closing / Pre-paidsClosing / Pre-paids...
Sales Price:Sales Price:
Appraisal:Appraisal:
Seller Paying:Seller Paying:
EMD:EMD:
2% Funding Fee:2% Funding Fee:
$100,00...
QUALIFYINGQUALIFYING
 Debt to Income Ratios = 29/41Debt to Income Ratios = 29/41
 Can go higher on DTI w/compensating fa...
OTHER CRITERIAOTHER CRITERIA
 Do not own a dwelling currentlyDo not own a dwelling currently
 Lack sufficient resources ...
PROPERTY ELIGIBLITYPROPERTY ELIGIBLITY
 Must have access from a street, roadMust have access from a street, road
or drive...
OTHER PROPERTYOTHER PROPERTY
REQUIREMENTSREQUIREMENTS
 Well & septic tested if county requiresWell & septic tested if cou...
FUNDS AVAILABLEFUNDS AVAILABLE
 Annual funds appropriated by Congress.Annual funds appropriated by Congress.
 Have been ...
QUESTIONS?QUESTIONS?
Victor Bals
734-417-2115
Vic@HVFloans.com
www.HVFLoans.com
Victor Bals
734-417-2115
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HVF USDA Rural Development Presentation Victor Bals

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Details on the Rural development mortgage loan. Zero down payment government back loan. Great loan for Livingston County MI borrowers.

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HVF USDA Rural Development Presentation Victor Bals

  1. 1. Huron Valley Financial Presents USDA RURAL DEVELOPMENT FINANCING Victor Bals 734-417-2115 Vic@HVFloans.com www.HVFLoans.com
  2. 2. WHAT IS RURAL DEVELOMENT?WHAT IS RURAL DEVELOMENT?  Census-basedCensus-based  US Department of AgricultureUS Department of Agriculture  Guaranteed against loss by USDAGuaranteed against loss by USDA  Pays lender if borrower defaultsPays lender if borrower defaults Victor Bals 734-417-2115 Vic@HVFloans.com
  3. 3. WHO CAN ORIGINATE USDA LOANS?WHO CAN ORIGINATE USDA LOANS?  Approved lender with HUD, VA, FannieApproved lender with HUD, VA, Fannie Mae or Freddie MacMae or Freddie Mac  State Housing AgencyState Housing Agency  Farm Credit ServiceFarm Credit Service Victor Bals 734-417-2115 Vic@HVFloans.com
  4. 4. LOAN PURPOSELOAN PURPOSE  Purchase new constructionPurchase new construction  Purchase existing homePurchase existing home  Refinance (only if currently have aRefinance (only if currently have a Rural-Development Loan)Rural-Development Loan)  Purchase MobilePurchase Mobile Home (very limited; difficult)Home (very limited; difficult) Victor Bals 734-417-2115 Vic@HVFloans.com
  5. 5. REASONS NOT USEREASONS NOT USE RURAL DEVELOPMENTRURAL DEVELOPMENT FOR A BUYERFOR A BUYER  Geographical LimitationsGeographical Limitations  Maximum Income limitationsMaximum Income limitations  Can’t buy house with in-ground pool (canCan’t buy house with in-ground pool (can try for exception to this)try for exception to this)  Primary Home OnlyPrimary Home OnlyVictor Bals 734-417-2115 Vic@HVFloans.com
  6. 6. INCOME QUALIFICATIONSINCOME QUALIFICATIONS http://eligibility.sc.egov.usda.govhttp://eligibility.sc.egov.usda.gov  Household adjusted annual income cap uses ALLHousehold adjusted annual income cap uses ALL occupants whether on the loan or not, 18 and overoccupants whether on the loan or not, 18 and over  Counts gross income, overtime, commission,Counts gross income, overtime, commission, bonuses, net self-employment income, Socialbonuses, net self-employment income, Social Security, Child Support, unemployment, etc.Security, Child Support, unemployment, etc.  Based on family size , county, property is locationBased on family size , county, property is location
  7. 7. ADJUSTMENTS TO INCOMEADJUSTMENTS TO INCOME  $480 / Year per minor or full-time student$480 / Year per minor or full-time student  Verified child care expensesVerified child care expenses  $400 / Year if borrower or co-borrower is$400 / Year if borrower or co-borrower is over 62 or disabledover 62 or disabled
  8. 8. CountiesCounties 11 personperson 22 personperson 33 personperson 44 personperson 55 personperson 66 personperson 77 personperson 88 personperson LivingstonLivingston 92,00092,000 92,00092,000 9200092000 9200092000 121,450121,450 121,450121,450 121,450121,450 121450121450 OaklandOakland 81,65081,650 81,65081,650 81,65081,650 81,65081,650 107,800107,800 107,800107,800 107,800107,800 107,800107,800 WashtenawWashtenaw 92,00092,000 92,00092,000 92,00092,000 92,00092,000 121,450121,450 121,450121,450 121,450121,450 121,450121,450 WayneWayne 81,65081,650 81,65081,650 81,65081,650 81,65081,650 107,800107,800 107,800107,800 107,800107,800 107,800107,800 InghamIngham 77,05077,050 77,05077,050 77,05077,050 77,05077,050 101,700101,700 101,700101,700 101,700101,700 101,700101,700 GeneseeGenesee 73,60073,600 73,60073,600 73,60073,600 73,60073,600 97,15097,150 97,15097,150 97,15097,150 97,15097,150 Income Limits Victor Bals 734-417-2115 Vic@HVFloans.com
  9. 9. GEOGRAPHICAL QUALIFICATIONSGEOGRAPHICAL QUALIFICATIONS  ALL Livingston CountyALL Livingston County  Most of Ingham CountyMost of Ingham County  Parts of Oakland CountyParts of Oakland County  Parts of Washtenaw CountyParts of Washtenaw County  Parts of Wayne CountyParts of Wayne County  Most Rural Parts of MichiganMost Rural Parts of MichiganVictor Bals 734-417-2115 Vic@HVFloans.com
  10. 10. BENEFITS TO BUYERSBENEFITS TO BUYERS  Finance 102% of appraised value, without gettingFinance 102% of appraised value, without getting cash back at closing (can get EMD, but no more)cash back at closing (can get EMD, but no more)  No Monthly Mortgage InsuranceNo Monthly Mortgage Insurance  30-Year fixed rate with very competitive rates30-Year fixed rate with very competitive rates  No loan limits (DTI / income limitations)No loan limits (DTI / income limitations)  Closing costs can be financedClosing costs can be financed  Unlimited gift, seller contributions 6% maxUnlimited gift, seller contributions 6% max  No reserves requiredNo reserves requiredVictor Bals 734-417-2115 Vic@HVFloans.com
  11. 11. Sales Price:Sales Price: Appraisal:Appraisal: Seller Paying:Seller Paying: EMD:EMD: Closing / Pre-paidsClosing / Pre-paids 2% Funding Fee:2% Funding Fee: $100,000 $110,000 $0 Closing Costs $500 $3,000/$2,000 $2,000 Can Finance: $107,000 and get $500 EMD back Victor Bals 734-417-2115 Vic@HVFloans.com
  12. 12. Sales Price:Sales Price: Appraisal:Appraisal: Seller Paying:Seller Paying: EMD:EMD: 2% Funding Fee:2% Funding Fee: $100,000$100,000 $105,000$105,000 ALL Closing / Pre-Paid ItemsALL Closing / Pre-Paid Items $500$500 $2,000$2,000 Can Finance: $102,000 and get $500 EMD back Break it Down Victor Bals 734-417-2115 Vic@HVFloans.com
  13. 13. QUALIFYINGQUALIFYING  Debt to Income Ratios = 29/41Debt to Income Ratios = 29/41  Can go higher on DTI w/compensating factors:Can go higher on DTI w/compensating factors:  660 + credit score required660 + credit score required  Payment shock consideredPayment shock considered  Reserves consideredReserves considered  Rental / Housing history not required withRental / Housing history not required with 620 credit or higher620 credit or higherVictor Bals 734-417-2115 Vic@HVFloans.com
  14. 14. OTHER CRITERIAOTHER CRITERIA  Do not own a dwelling currentlyDo not own a dwelling currently  Lack sufficient resources to secureLack sufficient resources to secure conventional creditconventional credit  US Citizen, Permanent Resident, Resident AlienUS Citizen, Permanent Resident, Resident Alien  Have legal capacity to enter contractHave legal capacity to enter contract
  15. 15. PROPERTY ELIGIBLITYPROPERTY ELIGIBLITY  Must have access from a street, roadMust have access from a street, road or drivewayor driveway  Site value less than or equal to 30% ofSite value less than or equal to 30% of total value of home and landtotal value of home and land  Leasehold estates (where applicable)Leasehold estates (where applicable)
  16. 16. OTHER PROPERTYOTHER PROPERTY REQUIREMENTSREQUIREMENTS  Well & septic tested if county requiresWell & septic tested if county requires  Water test for private wells requiredWater test for private wells required  Escrow for repairs under certain limited circumstancesEscrow for repairs under certain limited circumstances and will be 150% of cost of the repairs held in escrowand will be 150% of cost of the repairs held in escrow  New construction - must have warrantyNew construction - must have warranty
  17. 17. FUNDS AVAILABLEFUNDS AVAILABLE  Annual funds appropriated by Congress.Annual funds appropriated by Congress.  Have been known to run out before end of fiscalHave been known to run out before end of fiscal year. Congress must appropriate new funds foryear. Congress must appropriate new funds for the programthe program Victor Bals 734-417-2115 Vic@HVFloans.com
  18. 18. QUESTIONS?QUESTIONS? Victor Bals 734-417-2115 Vic@HVFloans.com www.HVFLoans.com Victor Bals 734-417-2115

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