Doug Capps, CRMS, MRMS

Know your mortgage options!!! 100% Financing is still alive and well through the USDA Guaranteed Rural Housing Program! Income limitations and property location restrictions DO apply.

For more information about the USDA Rural Housing Program, please contact DOUG CAPPS at (662) 429-5100. Fairway Independent Mortgage Corporation, 224 West Commerce St, Hernando, MS is a "Mississippi Licensed Mortgage Company."

USDA Guaranteed Rural Housing is NOT just for Mississippi, but for the purpose of this post, the map below is for Desoto County. To see if you are in an eligible area, go to: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

With the demise of 100% conventional conforming loans, there has been a large resurgence of these types of loans. Because this is a government guaranteed loan, many loan officers/ loan originators may not like to offer these programs to their prospective clients and may not even be knowledgeable enough to offer them. This is a good loan program, but like every other program, is not the "right fit" for everyone. Because this loan was specifically intended for low-to-moderate income families with minimal resources for down payment, there are some qualifying criteria...

Property eligibility - refer to map below. Property has to be located in an area designated by USDA as rural.

Debt-Ratio requirements - standard 29 (housing ratio)/41 (total debt ratio), but can be exceeded with higher credit scores and compensating factors.

Income limitations - uses total household income - number in household 1 - $49,550.00, 2 - $56,600.00, 3 - $63,700.00, 4 - $70,750.00, 5 - $76,400.00, 6 - $82,050.00, 7 - $87,750.00 and 8 - $93,400.00. These are the new 2008 income figures and represent NO GO Zone - for GO Zone, use the (family of 4) income limits for 1 through 4 family members and when there is above 4 in the household, use (family of 8) income limits.

Now for the POSITIVES:

• 100% financing (102% financing with the 2% funding fee)
• NO first-time homebuyer requirement
• NO down payment
• NO private mortgage insurance
• Conventional 30 year fixed interest rates
• Flexible Credit and Qualifying Guidelines
• 620 or higher, automatic credit approval
• 660 or higher, will waive qualifying 29/41 ratios
• Seller contributions are NOT limited to 6%
• NO sales price limit
• Closing costs can be financed if equity available
• NO investment properties allowed

Ask your loan officer for more information and if they know and are comfortable offering this mortgage product to your customers. If they are not, then your clients may be missing a good mortgage option!

Currently in the State of Mississippi, there are 804 licensed loan originators. Only 22 loan originators to date, have earned the NEW Lending Integrity Seal of Approval. These 22 loan originators represent the "first" Lending Integrity members in the State.

The National Association of Mortgage Brokers (NAMB) began working on the Lending Integrity Seal of Approval over 3 years ago and began officially approving members March 2008.

"For the first time ever, homebuyers have a simple way to assess a mortgage professional - a sign that they can look for before they even step foot in the door.

It's called the Lending Integrity Seal of Approval and those who display it have been through a rigorous validation process. They've pledged to adhere to a strict code of ethics, a best business practices policy, and an ethics grievance review process. They also receive ongoing education and have submitted to criminal background checks.

Make sure you're working with a responsible lending professional. Ask to see your mortgage originator's Lending Integrity Seal of Approval."

The Lending Integrity Seal of Approval is sponsored by the National Association of Mortgage Brokers. For more information go to, www.lendingintegrity.org.