Atten: Home Buyers:

More Attractive Home Financing Options

This program has many flexible features not found in conventional and FHA loans.  It is aimed specifically at rural areas.  All counties in Florida EXCEPT Broward, Monroe and Pinellas are totally eligible or mostly eligible for this loan.  To see if a property is eligible, simply type in the property address at http://eligibility.sc.egov.usda.gov/

Advantages

• No down payment required
• No Mortgage Insurance
• No cash reserves required
• No seller contribution limit
• No Prepayment Penalty
• Loan up to 102%* of appraised value allowed…not the lesser of the Sale Price or Appraisal
• Loan amount can include closing costs and pre paids up to appraised value
• No stated maximum loan amount; maximum loan based on repayment ability
• No First Time Homebuyer Requirement
• New and existing homes OK
• Fully amortized 30-year fixed rate loan
• No minimum credit score required…common sense underwriting allowed
• No minimum cash contribution required from borrower
• No limit on CLTV (combined loan to value) when soft second financing such as SHIP or HOME is used for closing costs and pre paids
• No limitation on source of funds for closing costs.  No seasoning requirement
• 100% gifted closing cost or down payment assistance permitted
• Non traditional credit may substitute for lack of traditional credit history
• No derogatory credit explanations required when credit score is 620 or above
• Qualifying ratios of 29%/41%....[29% PITI (principal, interest, taxes and insurance) to Income and 41% Total Debt to Income - however standard ratios may be exceeded with documented compensating factors]
• Automatic ratios waiver of 31%/43% for homes built after January 2000
• Conventional type loan packaging with only 1 extra form required
• Competitive rates (set by underwriting lenders) with attractive fee income

*Appraisal may be exceeded by amount of Guarantee Fee

Abbreviations:
SHIP – State Housing Initiatives Partnership: a state funded housing program
HOME- Federal Affordable Housing Program

Maximum Adjusted Gross Housing Income:

NOTE:  The GROSS income limits can be much higher than the ADJUSTED income limits shown in this table

 

If the projected dependable income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 years or younger and paid to someone outside of the family and one $480.00 annual deduction can also be taken for anyone under 18 or a student who is not one of the applicants.  Other deductions are also available – please see your loan specialist