E Mortgage Blog

USDA Loans

EZ Qualify - 620 Credit Score - 29/45 DTI - Two years same profession = Approved!

What is a USDA Loan?

A USDA Guaranteed Loan is Government insured
100% purchase loan. These Loans are only
offered in rural areas and serviced by direct
lenders that meet federal guidelines.
USDA Loan Limits

USDA Updates For 2009
Loan Guarantee Program (Section 502)

Under the Guaranteed Loan program, the Housing and
Community Facilities Programs guarantees loans made by private
sector lenders. (A loan guarantee through HCFP means that,
should the individual borrower default on the loan, HCFP will pay
the private financier for the loan.) The individual works with the
private lender and makes his or her payments to that lender.





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. Since a common barrier
to owning a home for many low-income people is the lack of
funds to make a down payment, the availability of the loan
guarantees from HCFP makes the reality of owning a home
available to a much larger percentage of Americans.

Guaranteed Rural Housing Loans
This program is administered by
USDA Rural Development, which
serves the public through
more than 800 field offices
nationwide. Sometimes good credit
and a steady income are
not enough to qualify for a home
loan at a commercial lending
institution, such as a bank, savings
and loan or mortgage company.

More rural families and individuals
may be eligible to become
homeowners with the help of a
USDA guaranteed home loan.
When the federal government
agrees to guarantee a loan, lending
institutions can help buyers while
incurring less risk. Through USDA’s
Guaranteed Rural Housing
Loan Program, low- and moderate-
income people can qualify for
mortgages even without a down
payment.

To be eligible, applicants must:

Have an adequate and dependable income;

Be a U.S. citizen, qualified alien, or be legally
admitted to the United States for permanent
residence;

Have an adjusted annual household income that
does not exceed the moderate income
limit established for the area. A family’s income
includes the total gross income of the
applicant, co-applicant and any other adults in the
household. Applicants may be eligible to
make certain adjustments to gross income— such
as annual child care expenses and $480 for each
minor child—in order to qualify.

USDA Rural Development field offices can provide
information on the moderate income limits
for the areas that fall within their jurisdiction, and
can provide further guidance on calculating
household income. There is an automated income
eligibility calculator at:
https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do;

Have a credit history that indicates a reasonable
willingness to meet obligations as they
become due;

Have repayment ability based on the following
ratios: Principle, Interest, Taxes, and Insurance
(PITI) divided by gross monthly income must be
equal to or less than 29 percent.

Total debt divided by gross monthly income must
be equal to, or less than, 41 percent.

Homes That Qualify:

Guaranteed loans can be made on either new or
existing homes;

Existing homes must be structurally sound,
functionally adequate, and in good repair;

There are no restrictions on the size or design of
the home financed;

The home must not be used for income-producing
purposes;

Homes must be located in rural areas. Rural areas
include open country and places with a
population of 10,000 or less and—under certain
conditions—towns and cities with
between 10,000 and 25,000 residents.

USDA Rural Development field offices can
determine eligible areas.

Highlights of the USDA Guaranteed Rural Housing
Loan Program

Loans may be for up to 100 percent (102 percent
if the guarantee fee is included in the
loan) of appraised value or for the acquisition
cost, whichever is less.

No downpayment is required;

Mortgages are 30-year fixed rate at market
interest rates;

Loans may include funds for closing costs, the
guarantee fee, legal fees, title services, cost of
establishing an escrow account and other prepaid
items, if the appraised value is higher
than sales price;

Sellers may contribute to the buyer’s closing costs;

Home buyers make application with participating
lenders;

Buyers must personally occupy the dwelling
following the purchase;

Loans may be made to refinance either existing
USDA Rural Development Guaranteed
housing loans or our Section 502 Direct housing
loans;

For purchase loans, a one-time guarantee fee
equal to 2.0 percent of the loan amount is
charged to the lender.

The charge for refinance loans is 0.5 percent.
Typically, the lender passes on this expense to
the borrower as a closing cost.

After the one-time fee is paid, there is no
recurring monthly expense charged for
guaranteeing
the loan;

Closed loans have secondary market acceptability,
including Freddie Mac, Fannie Mae,
Ginnie Mae pools, and many state housing finance
agencies;

Guaranteed loans are subject to the provisions of
the Civil Rights statutes, including the Equal
Credit Opportunity Act.

We’re Here to Help Interested home buyers !

YOU CAN APPLY RIGHT NOW ON OUR MAIN WEBSITE AND A LOAN OFFICER OR MORTGAGE BANKER WILL CALL YOU WITH YOUR APPROVAL SHORTLY!

or call for more information : 239-580-9977

or visit www.premiermortgagestore.com
or www.e-mortgagelending.com

HomeStyle Renovation

HomeStyle Renovation combines home purchase or refinance with home improvement financing in one loan with one closing.

Consumer Benefits

• Finance improvements of up to 50% of the as-completed value of the renovations with a low first mortgage interest rate
• Save money by paying only one set of closing costs
• Eligible borrowers can finance soft costs and payment reserves

For more about a HomeStyle® Renovation Mortgage
thru Fannie Mae.