USDA Rural Housing Loan

USDA Rural Housing Loan

Account Description

· A USDA Guaranteed Loan is Government insured 100% purchase loan.

· These Loans are only offered in rural areas. Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment.

Down Payment

· 100% LTV maximum.

· Up to 103.63% LTV is allowed when Guarantee Fees are financed.

· All re-recurring and non-recurring closing costs may be included.

Eligibility

· Purchase, Rate & Term Refinance

· Primary Residence, Owner Occupied

· Single Family non-farm residences, Approved Condos, and PUDs.

· Property must be located in rural area, as designated by the local RHS office.

· The value of the site should not exceed 30% of the total value of the property.

· The property must be contiguous to and have access to a paved or all-weather surface street, road or driveway.

· The property must have a dependable water and waste disposal systems that are approved by local authorities.

· No more than 1x30 in the last 12months on consumer credit or 1x30 in the last 24 months on housing expenses

· No collections, charge-offs or judgments allowed in the last 12 months

· No outstanding tax liens or delinquent government debt allowed

· No bankruptcy or foreclosure allowed in the last 36 months

Refinances

· The Interest Rate cannot exceed the interest rate of the existing loan

· The loan security must include the same property as the original loan.

· The security property must be owner-occupied as the borrower’s primary residence.

· Subordinate financing, such as home equity lines of credit and down payment assistance “silent” seconds, cannot be included in the new loan amount.

· Unpaid fees, such as late fees due the service, cannot be included in the new loan amount.

· Any existing secondary financing must be subordinate to the first lien

Income Limits

· See USDA Website http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11

Loan Limits

· See USDA Website http://usdaloanapproval.com/USDALoanlimits.html

Penalties/Restrictions

· No Prepayment Penalty

Account Features

Account Disclosure/Statements

Information about Opening a New Account

Assistance

*Speak with a Mortgage Loan Specialist for full details, exceptions may apply.