Colleen O'Clair

Towns eligible for 100% financing:
http://eligibility.sc.egov.usda.gov

Income eligibility:
http://eligibility.sc.egov.usda.gov

USDA Rural Development Home Loans

Truly 100% Financing - NO Money required

Buyers shop with mortgage commitment - not "Pre-Qual

New RESPA rule problems all but eliminated

Appraisals done under the "old system"

Encrypted processing and communication system

All parties work together for a common goal - CLOSINGS

GREAT FEATURES (100% Financing)

No down payment requirements, up to 102% LATV

No monthly PMI

Aggressive income Limits

No limits on Seller Contributions

Low Fixed Rates at better than conforming pricing

Automated qualifying option for higher ratios

No maximum loan amounts

No asset limit/no minimum reserves

ITEMS OF NOTE: (100% Financing)

USDA loans do require a 2% guarantee fee

Owner Occupied only

Purchase only. No cash out allowed

29/41 ratio guideline. Automated approval possible to 50% DTI (strong profile required)

Income Limits: 115% of HUD Median Limits

One unit properties only. Approved condo and townhomes allowed

NOT limited to first time homebuyers

BORROWER QUALIFICATIONS for 100% FINANCING

US citizen or valid green card

Borrower must have dependable and adequate income and stability of income

Borrower must have shown a past willingness and ability to meet obligations.

Borrower cannot be delinquent of have defaulted on a prior rural housing loan or other federal debt. CAIVR's required.

Minimum 580 FICO required

Loans are manually underwritten to 41% DTI. Further ratio waivers with 660 credit score.

ELIGIBILITY for 100% Financing

USDA has income limitations and also ineligible origination areas

USDA has a website that you can access the income and property eligibility restrictions

http//eligibility.sc.egov.usda.gov

Underwriting Areas of Concern

• Risk Layering

• Payment Shock

• Credit History

• • Credit issues in last 12 months

  • Foreclosures in last 36 months

  • Tax liens and delinquent government debts

  • Late rent payments

  • Collections

  • Areas of consideration (not considered unacceptable)

    * No Credit history

    * BK over 36 months

    * Satisfied judgments or foreclosure with no loss of security completed in last 12 months

Property Requirements for 100% Financing

• Property must meet HUD's minimum property requirements

• No manufactured housing

• Condo projects must be HUD, VA, FNMA or FHLMC approved and association must be in control of the project.

• New Construction

• No excess land values

Workflow

• Initial buyers information submitted to ( LYC Mortgage call me for phone number and information. They will be doing this type of loan)

• Credit and income evaluations completed

• Buyer and realtor informed of qualified amounts

• Required forms signed for underwriting submission *

• Property research begins

• Conditional commitment obtained

• Final conditions provided to the buyer and realtor

• Purchase a property !!!

• *Underwriting will take 72 hours from the point of submission

100% Financing still exists

Wishing everyone a wonderful New Year. I have high expectations not only for myself but the real estate industry. Keeping a positive attitude is a must in everyday life and in business. Not only does it make you feel good but others around you will appreciate the upbeat mood.

Please feel free to give insight on how you want your New Year to start.