Purchase or Refinance Your Home with Confidence.
USDA Fact Sheet
GUARANTEED RURAL HOUSING LOAN PROGRAM
TARGET: Low/Moderate income households that can afford the monthly mortgage payments but do not have adequate funds for down payment or closing costs. Available to eligible applicants in rural areas.
- Do not currently own an adequate dwelling in the local commuting area.
- Will be the owner occupant.
- Household income must be within the income limits (see limits on reverse side)
- Must have acceptable credit history.
- Must have adequate and dependable income sufficient to meet all obligations.
- Must be a citizen or legally admitted to the United States for permanent residence.
ELIGIBLE AREA: Please refer to website: www.rurdev.usda.gov
MINIMUM ADEQUATE SITE:
The value of the site must not exceed 30 percent of the total value of the property.
– Purchase of existing manufactured housing (mobile homes).
– Purchase income producing properties or farm service buildings.
INSPECTIONS: Private water. Inspection Certifications completed by Lender’s appraiser.
Dwelling must meet current HUD Handbook 4150.2 and 4905.1 Standards.
LOAN TERM: 30 years (360 monthly payments)
INTEREST: FIXED – the lender’s maximum interest rate must not exceed Fannie Mae’s required net yield for 90-day commitments on 30-year fixed-rate mortgages with Actual/Actual remittance plus 60 basis points.
LOAN AMOUNT: Loan amount cannot exceed 106.0%* of the appraised value of the property. (*Appraised value may be exceeded by the amount of upfront guarantee fee financed.)
LOAN MORTGAGE AMOUNT: None. Applicant’s income and loan repayment ability will dictate the maximum loan amount.
GUARANTEE FEE: Up front fee of 2.0% of the Loan Amount plus .4% annual fee.
PITI (Principal, Interest, Taxes, and Insurance) does not exceed 29% of Gross Income.
TD (Total Debt) does not exceed 41% of Gross Income.
(Ratios above 29/41% can be exceeded with above average credit scores)
"*" indicates required fields
Registered Licensed Mortgage Broker-NY State dept. of financial services. All loans arranged by 3rd party lenders.
Nickel City Funding, Inc is a licensed mortgage broker by the Florida Office of Financial regulation NMLS #1586.