Bank Forclosures, Bank Repos, Short Sales, and Foreclosed Home Financing - American Mortgage Centers

Buying an new Home, Bank Owned, Forclosed, or a home about to go into forclosure is really becoming simple for the consumer. Rural Development offers an excellent option to consider for financing these properties.

Rural Development Mortgage Financing Overview

USDA Government 100% Financing

Sometimes good credit and a steady income are not enough to qualify for a home loan at a commercial lending institution, such as a bank, or savings and loan company. More rural families and individuals may be eligible to become homeowners with the help of a USDA guaranteed home loan. When the federal government agrees to guarantee a loan, lending institutions can help buyers while incurring less risk. Through USDA's Guaranteed Rural Housing Loan Program, people can qualify for mortgages, even without a down payment. This program will allow for the financing of Bank owned, forclosed, Bank Repos, Short Sales, and homes about to go into foreclosure.

Credit History Criteria

Quick Facts

• Provide modest housing for moderate income families in non urban areas
• Low one time Guarantee Fee of 2% for purchases and .5% for refinances
• Up to 102% (with Guarantee Fee) financing based on appraised value versus purchase price
• Seller contributions and third party gifts allowable
• No statutory maximum lending limits
• No Monthly Mortgage Insurance (PMI)
• Not restricted to first time home owners
• Loan funds on a purchase can be used for repairs, the Guarantee fee, and most lender fees

Property Requirements

• Primary residence only, no rentals or income producing properties
• New or existing stick built, modulars, and condos / PUD
• Manufactured units must be new with the dealer approved by RD
• Well and septic inspection for private systems
• Conventional type appraisal
• Properties with in-ground swimming pools are not acceptable
• No set lot size limit
• The site value should not exceed 30% of the total appraised value (exceptions possible)

Income and Ratios

• Income is projected forward including projected pay raises
  
• Verification of Employment and current paystub or acceptable alternitive documentation
  
• Self employed, two years tax returns and current P&L statement
  
• Non taxable income such as child support or social security can be grossed up by 125%

• No Minimum credit scores - limited credit usage is not consider as negative
  
• Cannot be delinquent on a federal government debt
  
• Applicants with less than a 620 middle credit score will have the following items considered for loan approval. More than 1 30 day late in the past 12 months. Debt written off in the past 36 months. Collections opened in the past 12 months or older ones that are still open Acceptable mitigating circumstances may offset certain adverse credit issues.

We specialize in FHA, VA, 100% Rural Development, and Conventional type Mortgages in Livingston and surrounding counties in Michigan. Brighton, howell area of Michigan acts as the hub of our community. Brighton is located just off of I-96 and US 23. We can and do service all areas of Michigan