USDA offers 100% financing where the borrower can finance closing costs and prepaids if supported by appraised value making it easy for borrowers with limited assets. Two important factors are property and borrower income eligibility. These can be determined at http://eligibility.sc.egov.usda.gov/. The Raleigh USDA office is 873-2051.
USDA Features:
- Can roll the 2% tax-deductible, non-refundable funding fee into the loan amount making it a 102LTV program! Take the loan amount and divide by .98 for the total loan amount.
- If score is 620 or greater, no need to verify rent history; no derogatory credit explanations but we may require collections to be paid.
- An FHA appraisal is not required but the appraiser can certify “minimum property standards” is met and a Home Inspection by a licensed inspector isn’t required.
- Collection accounts aged <12>12 months have to be paid is u/w discretion.
- DTI’s are 29/41 or 31/43 on homes built 4/2002 or after.
- Ratio waivers can be requested with compensating factors.
- Seller concessions limited to 6%.
- Lend up to the appraised value which the borrower can add in closing costs, prepaids, and repairs. Escrow holdbacks are allowed. See Broker Guide for details.
- All bankruptcies, foreclosures that resulted in a loss of security, and judgments must be seasoned 36 months from discharge date! 2 years for Ch 13. No exceptions.
- Primary occupancy only! Only refis for USDA to USDA only. 30 year fixed only.
- Water test is always needed with private wells: bacteria test only is required.
- No limits on gift of equity.
David Labrecque
Exclusive Buyer Agent
http://www.fletcher-realty.com/