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A USDA home loan is a zero down payment mortgage for eligible rural and suburban home buyers. The U.S Department of Agriculture backs certain loans to help low-to-moderate income level individuals obtain homeownership. The properties allowed to be purchased with a USDA loan need to be in a rural area pre-approved by the USDA before moving forward with the loan.” There should be no title as it will be a sentence under “USDA Loans – Zero Down Payment Required
● Must be 18 years or older
● U.S. Citizens
● Green Card Holders (non U.S. Citizen)
● H-1B Visa & EAD Card Holders (non U.S. Citizen)
o Occupancy required: Owner Occupied
● the borrower needs to live in the house throughout the lifetime of the loan
o Eligible Properties
● All homes need to be located in a rural area and approved by the USDA
● Attached / Detached SFRs and PUDs
● Low/Mid/High-Rise Condos and site Condos
● Modular homes (These are not considered to be manufactured and are eligible under the guidelines for 1 unit properties)
o Bankruptcy and Foreclosure Rules
● CH 7 Bankruptcy: 3 years since discharge
● CH 13 bankruptcy: proof of on-time payments for 1 year after the bankruptcy AND permission from the court
● Foreclosure: 3 years since completion
o Term: 30 year fixed ONLY
o Transaction types:
● Purchase
● Rate & Term (Non-Streamlined) Refinance
● Streamlined Refinance
● Streamlined-Assist Refinance
●PROOF OF INCOME
o Salaried (W2):
● 1 month pay stubs showing YTD
● 2 years of federal tax returns and W2s
o Self-employed or Business Owner:
● 2 years of federal tax returns (personal and business)
● Most current up to date profit and loss statement
o Retirement or Annuity or Child Support Income
● Must continue for 2 years or more
● EMPLOYMENT VERIFICATION (Employment is not required, but a steady income is)
o 2 years of work history verified by employer (proof from your company that you worked there)
o 2 years of self-employed or business income verified by a CPA
● ASEET DOCUMENTATION
o 60 days or a quarterly statement of all asset accounts
o 60 days statements for retirement accounts (if applicable)
o Real estate currently owned if any
● PROOF OF IDENTITY
o Driver’s License or State Identification
o Social Security Card
Purchase and Rate & Term Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| 640+ | —- | —- | 100%^ |
o Rate & Term Refinance of an existing USDA loan
o New appraisal is required
Streamline Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| >or= 700 | 29%/41% | 0x30x12 | Unlimited |
| >or= 700 | 29%/41% | 0x30x12 | 125% |
| >or= 660 | 29%/41% | 0x30x12 | 100% |
| 620-659 | 29%/41% | 0x30x24 | 95% |
o Max loan amount cannot exceed original loan amount o Refinance of an existing USDA loan
Streamline Assist Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| >or= 700 | 43% | 0x30x12 | Unlimited |
| >or= 700 | 60% | 0x30x12 | 125% |
| >or= 660 | 50% | 0x30x12 | 100% |
| 620-659 | 50% | 0x30x24 | 95% |
o DTI = Debt to Income Ratio (expenses / income = DTI %)
o 0x30x12 means no 30 day late payments in the last 12 months.
o 0x30x24 means no 30 day late payments in the last 24 months.
o LTV may exceed 100% only by the amount of the Guarantee Fee financed.
A USDA home loan is a zero down payment mortgage for eligible rural and suburban home buyers. The U.S Department of Agriculture backs certain loans to help low-to-moderate income level individuals obtain homeownership. The properties allowed to be purchased with a USDA loan need to be in a rural area pre-approved by the USDA before moving forward with the loan.” There should be no title as it will be a sentence under “USDA Loans – Zero Down Payment Required
● Must be 18 years or older
● U.S. Citizens
● Green Card Holders (non U.S. Citizen)
● H-1B Visa & EAD Card Holders (non U.S. Citizen)
o Occupancy required: Owner Occupied
● the borrower needs to live in the house throughout the lifetime of the loan
o Eligible Properties
● All homes need to be located in a rural area and approved by the USDA
● Attached / Detached SFRs and PUDs
● Low/Mid/High-Rise Condos and site Condos
● Modular homes (These are not considered to be manufactured and are eligible under the guidelines for 1 unit properties)
o Bankruptcy and Foreclosure Rules
● CH 7 Bankruptcy: 3 years since discharge
● CH 13 bankruptcy: proof of on-time payments for 1 year after the bankruptcy AND permission from the court
● Foreclosure: 3 years since completion
o Term: 30 year fixed ONLY
o Transaction types:
● Purchase
● Rate & Term (Non-Streamlined) Refinance
● Streamlined Refinance
● Streamlined-Assist Refinance
●PROOF OF INCOME
o Salaried (W2):
● 1 month pay stubs showing YTD
● 2 years of federal tax returns and W2s
o Self-employed or Business Owner:
● 2 years of federal tax returns (personal and business)
● Most current up to date profit and loss statement
o Retirement or Annuity or Child Support Income
● Must continue for 2 years or more
● EMPLOYMENT VERIFICATION (Employment is not required, but a steady income is)
o 2 years of work history verified by employer (proof from your company that you worked there)
o 2 years of self-employed or business income verified by a CPA
● ASEET DOCUMENTATION
o 60 days or a quarterly statement of all asset accounts
o 60 days statements for retirement accounts (if applicable)
o Real estate currently owned if any
● PROOF OF IDENTITY
o Driver’s License or State Identification
o Social Security Card
Purchase and Rate & Term Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| 640+ | —- | —- | 100%^ |
o Rate & Term Refinance of an existing USDA loan
o New appraisal is required
Streamline Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| >or= 700 | 29%/41% | 0x30x12 | Unlimited |
| >or= 700 | 29%/41% | 0x30x12 | 125% |
| >or= 660 | 29%/41% | 0x30x12 | 100% |
| 620-659 | 29%/41% | 0x30x24 | 95% |
o Max loan amount cannot exceed original loan amount o Refinance of an existing USDA loan
Streamline Assist Refinance
| FICO | DTI | MORTGAGE HISTORY | MAX LTV/CLTV |
|---|---|---|---|
| >or= 700 | 43% | 0x30x12 | Unlimited |
| >or= 700 | 60% | 0x30x12 | 125% |
| >or= 660 | 50% | 0x30x12 | 100% |
| 620-659 | 50% | 0x30x24 | 95% |
o DTI = Debt to Income Ratio (expenses / income = DTI %)
o 0x30x12 means no 30 day late payments in the last 12 months.
o 0x30x24 means no 30 day late payments in the last 24 months.
o LTV may exceed 100% only by the amount of the Guarantee Fee financed.
