USDA
'Rural
Development' Guaranteed Mortgage
Although the process takes longer,
this is a great program to
own your own home
- US Dept. of Agriculture, as opposed to HUD
- Lower Documentation Requirements
- FICO score requirements are delineated at: -620,
620-660,
and 660+
- No Reserves requirement - No loan limits - No FHA
qualifiers
- No PMI
- Congressional pressure to use - $ go to Eastern slope
when
not used here every year
- ‘No Money Down’
- Can’t finance Pre-pay costs ($1000) Need creative
structure
of offer from seller.
- (Seller pays closing costs) No limit to seller’s
contribution to
closing costs
- Upfront fee of 2% can be included in loan, depending
on the
appraisal. (102% - charged to lender)
- Principal Residence - No restrictions on size or
design of
house – no pools
- Loan may include: repairs, closing costs, guarantee
fee,
legal fees, title services, cost of establishing escrow account, and
other pre-paid items - depending on appraisal
- Buyers are responsible for any fees not covered by
appraisal
amount.
- Two sections: ‘Self-Help’ for low income/construction,
and
‘Guaranteed’
(Construction Loans under ‘Self-Help’ section – similar to ‘Habitat for
Humanity’)
- New Manufactured Homes OK
- One day Home Ownership class for first-timers, (much
easier than CHAFA) also online
- Supervisors don’t inspect property endlessly - unlike
CHAFA
- Purchase only with current interest rates, re-fi no
longer
realistic.
- PITI no more than 29% front end - DTI
no
more than 41% back end.
Mesa County
Income Guidelines: June 1, 2006:
1 person 2
persons 3 persons
4 persons 5 persons 6 persons 7
persons 8 persons
$48000 $54850 $61700
$68550 $74050 $79550
$85050 $90500
Common adjustments to the gross income
include:
childcare for children 12 years and younger; a $480 deduction for each
child under 18 years, 18 years or older and handicapped, or a full-time
student who is not the applicant or spouse or co-applicant; and a $400
deduction for each elderly household member.Borrowers participating in
the Rural Development Program may have an income of up to 115% of the
median income for the area. The allowable income depends on the county
where the subject property is located and the number of members in the
household. For large spreads of land, the land value divided by the
total value is limited to 30%. Call for information regarding the
income limits for other counties.
Click Here to see the USDA
eligibility map
Click here and
request
my USDA article
The first step to your USDA mortgage is  
complete and submit the
form
or call Chris
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