USDA Rural Housing Loan
· 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.
· 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.
· 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
· 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
· See USDA Website http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11
· See USDA Website http://usdaloanapproval.com/USDALoanlimits.html
· No Prepayment Penalty