USDA Summary 

Highlights

• True Zero Down Single Loan

• NO MI

• Rates as good as FHA.Turns out cheaper since there is NO MI
• Difference between Appraised value and Purchase Price can be used for closing costs.

Limitations

• Property should be in an Eligible City.Check by clicling on the Link if the City you want to buy in Qualifies
• Income should be below the threshold cut off for the City.Please fill out the Short Application to see if you qualify

 

 

Income Documentation

 

• Documented by Tax Returns of Borrower and CoBorrower.
• Co Signers ( Non Occupant Borrowers are permitted to help the Borrowers to qualify)
• Gaps in Employment are OK with satisfactory explanation

 

Down Payment

 

• Zero Down.

Closing Costs

• Upto 6% credit towards closing cost credits by the seller to the buyer is acceptable

 

 

Credit

FICO above 620

• Generally more conservative than an FHA Loan.back end ratios allowed are about 43% even though the automated underwriter may approve you at a higher backend ratio

FICOs 580-619

• Manual Underwriting .Back End DTI to 40% normally
• FICOs below 620 can have no lates in the last 12 months

 

 

Collections/Chargeoffs

620 + FICOs

• Per underwriter discretion

FICOs below 620

• Per underwriter discretion

 

Tax Liens/Judgements

• Need to be cleared or on a payment plan

Bankruptcy

• Need 2 year established credit after discharge

Foreclosure

• Need 3 year established credit after foreclosure

 

If you are ready to move forward Click on the Short Application Link to start the process.

Instant Affordability Calculator:This is our Proprietory Affordability Calculator.It matches your profile against the programs we offer and instantly communicates the PreQual amount and the Purchase price you are eligible for.No personal information such as name,Social ,address are needed.

Short Application:Input a Short Application if you are ready to move forward.A Loan Officer will review the application and be in touch per your preference.

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