rural housing highlights
Minimum 620 credit score
Financing to 100% of the appraised value
Guarantee fee of 2.0%/0.40% annual fee (*lifetime annual fee)
Income limits / Property Eligibility can be located at http://eligibility.sc.egov.usda.gov
The borrower’s adjusted HOUSEHOLD INCOME cannot exceed 115% of the median income for the county in which the property is located. Income is projected forward including projected pay raises. (avg $75,750 for a 1-4 person household)
- Borrowers may have only one primary residence. Borrowers may be the current owner of a structurally sound, functionally adequate house, as long as it is sold prior to or concurrently with the purchase of the new home.
- Borrower must lack the sufficient resources to secure the necessary down payment, generally 20%, to obtain conventional financing.
- If borrower has 20% or greater in assets but ratios exceed 28/36%, the borrower is eligible for USDA RD financing
Loans with <680 FICO score that do not receive a GUS Accept or require a manual underwrite will be declined if ratios exceed 29/41%.
Loans with ≥ 680 FICO score that do not receive a GUS Accept or require a manual underwrite will be subject to maximum DTI ratios of 32/44% provided at least one acceptable compensating factor is documented.
GUS accept loans – max back end DTI is 50%
Ratios should not exceed 29/41 unless compensating factors are present or GUS has provided an ACCEPT finding. The following are acceptable compensating factors provided they are fully documented:
The proposed PITI is equal to or less than the applicant’s current verified housing expense for the 12 month period preceding the date of the loan application.
Accumulated savings of liquid assets or cash reserves available post loan closing are equal to or greater than 3 months of PITI payments.
The applicant(s) (all employed applicants) has been continuously employed with their current primary employer for a minimum of 2-years.