| Program Benefits |
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| Financing |
102% financing based on appraised value |
| Term |
30-year fixed |
| Refinance Option |
Yes- For rate reductions, no cash back. Reduced Guarantee Fee of .5%. Only existing GRH and Section 502 Direct loans are eligible for refinance |
| Mortgage insurance |
No monthly mortgage insurance. One-time guarantee of 2%. |
| Payment reserves |
No payment reserve requirements |
| Downpayment |
None |
| Seller concessions |
No maximum. If greater than 6%, comment from the appraiser required |
| Gifts |
100% gift permitted. Donor must be disinterested third party |
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| Income and Ratios |
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| Ratios |
29/41- exceptions ecouraged with compensating factors and RD concurrence |
| Non-occupant Co-borrower |
Non-occupant co-borrowers not permitted unless approved by RD |
| Installment debt |
Include all installment debt greater than six months |
| Primary income |
Two-year history |
| Self-employment |
Two-years 1040s and P&L |
| Alimony/child support |
12-month history, with proof of 3 year continuance |
| Part-time, Over-time & Bonus |
12-month history |
| Disability benefits |
Benefits letter, 3 years continuance and gross up 125% |
| SSI benefits |
Awards letter or 2 months bank statements, 3 years continuance and gross up 125% |
| Salary increases |
Salary increases with 60 days of the first payment due date are acceptable |
| Maximum income |
Use RD Moderate income limits: http://eligibility.sc.egov.usda.gov |
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| Credit |
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| Credit score |
No minimum credit scores |
| Late payments |
1 X 30 permitted in last 12 months with explanations- Exceptions may be granted if your borrowers have 620 or greater middle credit scores |
| Bankruptcy/ Foreclosure |
Chapter 7 and 13 must be discharged for 3 years- Foreclosures must be completed 3 years ago- Exceptions may be granted if your borrowers have 620 or greater middle credit scores |
| Collections |
Accounts cannot have been placed in collection status within the last 12- months- Exceptions may be granted if your borrowers have 620 or greater middle credit scores |
| Judgements |
Must be paid off for at least 12 months- Exceptions may be granted if your borrowers have 620 or greater middle credit scores |
