hvf usda rural development presentation victor bals
DESCRIPTION
Details on the Rural development mortgage loan. Zero down payment government back loan. Great loan for Livingston County MI borrowers.TRANSCRIPT
Huron Valley Financial Presents
USDA RURAL DEVELOPMENT FINANCING
Victor Bals734-417-2115
www.HVFLoans.com
WHAT IS RURAL DEVELOMENT?WHAT IS RURAL DEVELOMENT?
Census-basedCensus-based
US Department of AgricultureUS Department of Agriculture
Guaranteed against loss by USDAGuaranteed against loss by USDA
Pays lender if borrower defaultsPays lender if borrower defaultsVictor Bals
om
WHO CAN ORIGINATE USDA LOANS?WHO CAN ORIGINATE USDA LOANS?
Approved lender with HUD, VA, Fannie Approved lender with HUD, VA, Fannie
Mae or Freddie MacMae or Freddie Mac
State Housing Agency State Housing Agency
Farm Credit ServiceFarm Credit ServiceVictor Bals
om
LOAN PURPOSELOAN PURPOSE
Purchase new constructionPurchase new construction Purchase existing homePurchase existing home Refinance (only if currently have a Refinance (only if currently have a
Rural-Development Loan)Rural-Development Loan) Purchase Mobile Purchase Mobile Home (very limited; difficult)Home (very limited; difficult)
Victor Bals734-417-2115
REASONS NOT USE REASONS NOT USE RURAL DEVELOPMENT RURAL DEVELOPMENT
FOR A BUYERFOR A BUYER
Geographical LimitationsGeographical Limitations Maximum Income limitationsMaximum Income limitations Can’t buy house with in-ground pool (can Can’t buy house with in-ground pool (can
try for exception to this)try for exception to this) Primary Home Only Primary Home Only
Victor Bals734-417-2115
INCOME QUALIFICATIONSINCOME QUALIFICATIONShttp://eligibility.sc.egov.usda.gov
Household adjusted annual income cap uses ALL Household adjusted annual income cap uses ALL occupants whether on the loan or not, 18 and overoccupants whether on the loan or not, 18 and over
Counts gross income, overtime, commission, Counts gross income, overtime, commission, bonuses, net self-employment income, Social bonuses, net self-employment income, Social Security, Child Support, unemployment, etc.Security, Child Support, unemployment, etc.
Based on family size , county, property is locationBased on family size , county, property is location
ADJUSTMENTS TO INCOMEADJUSTMENTS TO INCOME
$480 / Year per minor or full-time student $480 / Year per minor or full-time student Verified child care expensesVerified child care expenses $400 / Year if borrower or co-borrower is $400 / Year if borrower or co-borrower is
over 62 or disabledover 62 or disabled
CountiesCounties1 1
perspersonon
2 2 persoperso
nn
3 3 persoperso
nn
4 4 persoperso
nn
5 5 persoperso
nn
6 6 persoperso
nn
7 7 persoperso
nn
8 8 persoperso
nn
LivingstoLivingstonn
92,092,00000
92,0092,0000
9200920000
9200920000
121,4121,45050
121,4121,45050
121,4121,45050
121412145050
OaklandOakland 81,681,65050
81,6581,6500
81,6581,6500
81,6581,6500
107,8107,80000
107,8107,80000
107,8107,80000
107,8107,80000
WashtenWashtenawaw
92,092,00000
92,0092,0000
92,0092,0000
92,0092,0000
121,4121,45050
121,4121,45050
121,4121,45050
121,4121,45050
WayneWayne 81,681,65050
81,6581,6500
81,6581,6500
81,6581,6500
107,8107,80000
107,8107,80000
107,8107,80000
107,8107,80000
InghamIngham 77,077,05050
77,0577,0500
77,0577,0500
77,0577,0500
101,7101,70000
101,7101,70000
101,7101,70000
101,7101,70000
GeneseeGenesee 73,673,60000
73,6073,6000
73,6073,6000
73,6073,6000
97,1597,1500
97,1597,1500
97,1597,1500
97,1597,1500
Income Limits
Victor Bals734-417-2115
GEOGRAPHICAL QUALIFICATIONSGEOGRAPHICAL QUALIFICATIONS
ALL Livingston CountyALL Livingston County Most of Ingham CountyMost of Ingham County Parts of Oakland CountyParts of Oakland County Parts of Washtenaw CountyParts of Washtenaw County Parts of Wayne CountyParts of Wayne County Most Rural Parts of MichiganMost Rural Parts of MichiganVictor Bals
om
BENEFITS TO BUYERSBENEFITS TO BUYERS
Finance 102% of appraised value, without getting Finance 102% of appraised value, without getting cash back at closing (can get EMD, but no more)cash back at closing (can get EMD, but no more)
No Monthly Mortgage InsuranceNo Monthly Mortgage Insurance 30-Year fixed rate with very competitive rates30-Year fixed rate with very competitive rates No loan limits (DTI / income limitations)No loan limits (DTI / income limitations) Closing costs can be financedClosing costs can be financed Unlimited gift, seller contributions 6% maxUnlimited gift, seller contributions 6% max No reserves requiredNo reserves requiredVictor Bals
om
Sales Price: Sales Price: Appraisal: Appraisal: Seller Paying:Seller Paying:EMD:EMD:Closing / Pre-paidsClosing / Pre-paids2% Funding Fee:2% Funding Fee:
$100,000$110,000$0 Closing Costs$500$3,000/$2,000$2,000
Can Finance: $107,000 and get $500 EMD backVictor Bals
om
Sales Price:Sales Price:Appraisal:Appraisal:Seller Paying:Seller Paying:EMD:EMD:2% Funding Fee:2% Funding Fee:
$100,000$100,000$105,000$105,000ALL Closing / Pre-Paid ItemsALL Closing / Pre-Paid Items$500$500$2,000$2,000
Can Finance: $102,000 and get $500 EMD back
Break it Down
Victor Bals734-417-2115
QUALIFYINGQUALIFYING
Debt to Income Ratios = 29/41Debt to Income Ratios = 29/41 Can go higher on DTI w/compensating factors: Can go higher on DTI w/compensating factors:
660 + credit score required660 + credit score required Payment shock consideredPayment shock considered Reserves considered Reserves considered
Rental / Housing history not required with Rental / Housing history not required with 620 credit or higher 620 credit or higher Victor Bals
om
OTHER CRITERIAOTHER CRITERIA
Do not own a dwelling currently Do not own a dwelling currently Lack sufficient resources to secure Lack sufficient resources to secure
conventional creditconventional credit US Citizen, Permanent Resident, Resident AlienUS Citizen, Permanent Resident, Resident Alien Have legal capacity to enter contractHave legal capacity to enter contract
PROPERTY ELIGIBLITYPROPERTY ELIGIBLITY
Must have access from a street, road Must have access from a street, road
or drivewayor driveway
Site value less than or equal to 30% of Site value less than or equal to 30% of
total value of home and landtotal value of home and land
Leasehold estates (where applicable)Leasehold estates (where applicable)
OTHER PROPERTY OTHER PROPERTY REQUIREMENTSREQUIREMENTS
Well & septic tested if county requiresWell & septic tested if county requires Water test for private wells required Water test for private wells required Escrow for repairs under certain limited circumstances Escrow for repairs under certain limited circumstances
and will be 150% of cost of the repairs held in escrowand will be 150% of cost of the repairs held in escrow New construction - must have warranty New construction - must have warranty
FUNDS AVAILABLEFUNDS AVAILABLE
Annual funds appropriated by Congress. Annual funds appropriated by Congress.
Have been known to run out before end of fiscal Have been known to run out before end of fiscal year. Congress must appropriate new funds for year. Congress must appropriate new funds for the program the program
Victor Bals734-417-2115
QUESTIONQUESTIONS?S?
Victor Bals734-417-2115
www.HVFLoans.com
Victor Bals734-417-
2115