USDA Loans

USDA Loans - Zero Down Payment Required

A USDA home loan is a zero down payment mortgage for eligible rural and suburban home buyers. The U.S Department of Agriculture backs certain loans to help low-to-moderate income level individuals obtain homeownership. The properties allowed to be purchased with a USDA loan need to be in a rural area pre-approved by the USDA before moving forward with the loan." There should be no title as it will be a sentence under "USDA Loans - Zero Down Payment Required



WHO QUALIFIES??

• Must be 18 years or older
• U.S. Citizens
• Green Card Holders (non U.S. Citizen)
• H-1B Visa & EAD Card Holders (non U.S. Citizen)


LOAN DETAILS

o Occupancy required: Owner Occupied
• the borrower needs to live in the house throughout the lifetime of the loan

o Eligible Properties
• All homes need to be located in a rural area and approved by the USDA
• Attached / Detached SFRs and PUDs
• Low/Mid/High-Rise Condos and site Condos
• Modular homes (These are not considered to be manufactured and are eligible under the guidelines for 1 unit properties)

o Bankruptcy and Foreclosure Rules
• CH 7 Bankruptcy: 3 years since discharge
• CH 13 bankruptcy: proof of on-time payments for 1 year after the bankruptcy AND permission from the court
• Foreclosure: 3 years since completion

o Term: 30 year fixed ONLY

o Transaction types:
• Purchase
• Rate & Term (Non-Streamlined) Refinance
• Streamlined Refinance
• Streamlined-Assist Refinance

• PROOF OF INCOME
o Salaried (W2):
• 1 month pay stubs showing YTD
• 2 years of federal tax returns and W2s

o Self-employed or Business Owner:
• 2 years of federal tax returns (personal and business)
• Most current up to date profit and loss statement

o Retirement or Annuity or Child Support Income
• Must continue for 2 years or more

• EMPLOYMENT VERIFICATION (Employment is not required, but a steady income is)
o 2 years of work history verified by employer (proof from your company that you worked there)
o 2 years of self-employed or business income verified by a CPA

• ASEET DOCUMENTATION
o 60 days or a quarterly statement of all asset accounts
o 60 days statements for retirement accounts (if applicable)
o Real estate currently owned if any

• PROOF OF IDENTITY
o Driver’s License or State Identification
o Social Security Card


Purchase and Rate & Term Refinance

  FICO

DTI

MORTGAGE HISTORY

MAX LTV/CLTV

640+

----

----

100%^

           
o Rate & Term Refinance of an existing USDA loan
o New appraisal is required

Streamline Refinance

  FICO

DTI

MORTGAGE HISTORY

MAX LTV/CLTV

>or= 700

29%/41%

0x30x12

Unlimited

>or= 700

29%/41%

0x30x12

125%

>or= 660

29%/41%

0x30x12

100%

620-659

29%/41%

0x30x24

95%


o Max loan amount cannot exceed original loan amount o Refinance of an existing USDA loan

o Streamline Assist Refinance


  FICO

DTI

MORTGAGE HISTORY

MAX LTV/CLTV

>or= 700

43%

0x30x12

Unlimited

>or= 700

60%

0x30x12

125%

>or= 660

50%

0x30x12

100%

620-659

50%

0x30x24

95%



o DTI = Debt to Income Ratio (expenses / income = DTI %)
o 0x30x12 means no 30 day late payments in the last 12 months.
o 0x30x24 means no 30 day late payments in the last 24 months.
o LTV may exceed 100% only by the amount of the Guarantee Fee financed.