Terms and Fees

• Maximum Loan Amount: 100% Appraised Value PLUS Upfront Guarantee Fee (101% financing)

• Loan Fees: 1) Upfront Guarantee Fee = 1.00%, 2) Technology Fee = $25; Annual Fee = 0.35% UPB​

• Interest Rate: 30-year fixed rate term negotiated between the applicant and lender. No cap on rate.

• Seller/Interested Party Contributions: Allowable up to 6% of sales price. No limit on gift funds.

• Types: Purchase, Build, Refinance, Streamline Refinance

• Participating Lenders earn Community Reinvestment Act (CRA) credit
   

Applicant

• Occupancy: Must agree to personally occupy home within 60 days of loan closing

• Citizenship: Must be a U.S. citizen, U.S. non-citizen national, or qualified alien

• Assets: Must be unable to obtain conventional financing with no PMI and a 30-year fixed rate term

• Suspension or Debarment: Lender will verify eligibility through the System for Award Management (sam.gov)S

• Not limited to First Time Home Buyers

 

Income

• Annual Income: Income of ALL adult household members must be below the Moderate limit [115% of the county median household income (MHI)].

• Adjusted Annual Income: Eligible deductions—$480 per eligible dependent, $400 elderly household; eligible childcare, elderly medical, and disability expenses

• Repayment Income: Stable and dependable income of the applicants who will sign the note; Co-signers not permitted; Non-taxed repayment income may be grossed-up by 25%

• Repayment Ability (Ratios): 29% PITI and 41% TD (flexible with compensating factors)

  • ◊ GUS “Accept” = no waiver required; GUS “Refer” or “Refer with Caution” = waiver required

 

Credit

• Credit Score: 620

• GUS “Accept”: Credit score validation not required; Streamlined documentation submission

• GUS “Refer” or “Refer with Caution”: Credit score validation required (at least 1 applicant must have 2 tradelines with a 12-month history); Full documentation submission

• Non-Traditional Credit: Acceptable for applicants without a usable score; 2 trade references when 1 is a verification of rent or mortgage, 3 trade references if no verification of rent or mortgage

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Property

• Eligible Area: Must be located within a rural area

• Property Types: Single Family Existing, New Construction, Condos, PUDs, Modular, and some Manufactured

• Site Size: No acreage limit. Site size must be typical for the area and have no land or buildings principally utilized for income producing purposes

• Inspection: Existing homes must meet HUD Handbook 4000.1 requirements; Safe water test required for private wells; Well and/or septic inspection if required by appraiser, inspector, or lender