hvf usda rural development presentation victor bals

Huron Valley Financial Presents

USDA RURAL DEVELOPMENT FINANCING

Victor Bals734-417-2115

Vic@HVFloans.com

www.HVFLoans.com

WHAT IS RURAL DEVELOMENT?WHAT IS RURAL DEVELOMENT?

Census-basedCensus-based

US Department of AgricultureUS Department of Agriculture

Guaranteed against loss by USDAGuaranteed against loss by USDA

Pays lender if borrower defaultsPays lender if borrower defaultsVictor Bals

734-417-2115Vic@HVFloans.c

om

WHO CAN ORIGINATE USDA LOANS?WHO CAN ORIGINATE USDA LOANS?

Approved lender with HUD, VA, Fannie Approved lender with HUD, VA, Fannie

Mae or Freddie MacMae or Freddie Mac

State Housing Agency State Housing Agency

Farm Credit ServiceFarm Credit ServiceVictor Bals

734-417-2115Vic@HVFloans.c

om

LOAN PURPOSELOAN PURPOSE

Purchase new constructionPurchase new construction Purchase existing homePurchase existing home Refinance (only if currently have a Refinance (only if currently have a

Rural-Development Loan)Rural-Development Loan) Purchase Mobile Purchase Mobile Home (very limited; difficult)Home (very limited; difficult)

Victor Bals734-417-2115

Vic@HVFloans.com

REASONS NOT USE REASONS NOT USE RURAL DEVELOPMENT RURAL DEVELOPMENT

FOR A BUYERFOR A BUYER

Geographical LimitationsGeographical Limitations Maximum Income limitationsMaximum Income limitations Can’t buy house with in-ground pool (can Can’t buy house with in-ground pool (can

try for exception to this)try for exception to this) Primary Home Only Primary Home Only

Victor Bals734-417-2115

Vic@HVFloans.com

INCOME QUALIFICATIONSINCOME QUALIFICATIONShttp://eligibility.sc.egov.usda.gov

Household adjusted annual income cap uses ALL Household adjusted annual income cap uses ALL occupants whether on the loan or not, 18 and overoccupants whether on the loan or not, 18 and over

Counts gross income, overtime, commission, Counts gross income, overtime, commission, bonuses, net self-employment income, Social bonuses, net self-employment income, Social Security, Child Support, unemployment, etc.Security, Child Support, unemployment, etc.

Based on family size , county, property is locationBased on family size , county, property is location

ADJUSTMENTS TO INCOMEADJUSTMENTS TO INCOME

$480 / Year per minor or full-time student $480 / Year per minor or full-time student Verified child care expensesVerified child care expenses $400 / Year if borrower or co-borrower is $400 / Year if borrower or co-borrower is

over 62 or disabledover 62 or disabled

CountiesCounties1 1

perspersonon

2 2 persoperso

nn

3 3 persoperso

nn

4 4 persoperso

nn

5 5 persoperso

nn

6 6 persoperso

nn

7 7 persoperso

nn

8 8 persoperso

nn

LivingstoLivingstonn

92,092,00000

92,0092,0000

9200920000

9200920000

121,4121,45050

121,4121,45050

121,4121,45050

121412145050

OaklandOakland 81,681,65050

81,6581,6500

81,6581,6500

81,6581,6500

107,8107,80000

107,8107,80000

107,8107,80000

107,8107,80000

WashtenWashtenawaw

92,092,00000

92,0092,0000

92,0092,0000

92,0092,0000

121,4121,45050

121,4121,45050

121,4121,45050

121,4121,45050

WayneWayne 81,681,65050

81,6581,6500

81,6581,6500

81,6581,6500

107,8107,80000

107,8107,80000

107,8107,80000

107,8107,80000

InghamIngham 77,077,05050

77,0577,0500

77,0577,0500

77,0577,0500

101,7101,70000

101,7101,70000

101,7101,70000

101,7101,70000

GeneseeGenesee 73,673,60000

73,6073,6000

73,6073,6000

73,6073,6000

97,1597,1500

97,1597,1500

97,1597,1500

97,1597,1500

Income Limits

Victor Bals734-417-2115

Vic@HVFloans.com

GEOGRAPHICAL QUALIFICATIONSGEOGRAPHICAL QUALIFICATIONS

ALL Livingston CountyALL Livingston County Most of Ingham CountyMost of Ingham County Parts of Oakland CountyParts of Oakland County Parts of Washtenaw CountyParts of Washtenaw County Parts of Wayne CountyParts of Wayne County Most Rural Parts of MichiganMost Rural Parts of MichiganVictor Bals

734-417-2115Vic@HVFloans.c

om

BENEFITS TO BUYERSBENEFITS TO BUYERS

Finance 102% of appraised value, without getting Finance 102% of appraised value, without getting cash back at closing (can get EMD, but no more)cash back at closing (can get EMD, but no more)

No Monthly Mortgage InsuranceNo Monthly Mortgage Insurance 30-Year fixed rate with very competitive rates30-Year fixed rate with very competitive rates No loan limits (DTI / income limitations)No loan limits (DTI / income limitations) Closing costs can be financedClosing costs can be financed Unlimited gift, seller contributions 6% maxUnlimited gift, seller contributions 6% max No reserves requiredNo reserves requiredVictor Bals

734-417-2115Vic@HVFloans.c

om

Sales Price: Sales Price: Appraisal: Appraisal: Seller Paying:Seller Paying:EMD:EMD:Closing / Pre-paidsClosing / Pre-paids2% Funding Fee:2% Funding Fee:

$100,000$110,000$0 Closing Costs$500$3,000/$2,000$2,000

Can Finance: $107,000 and get $500 EMD backVictor Bals

734-417-2115Vic@HVFloans.c

om

Sales Price:Sales Price:Appraisal:Appraisal:Seller Paying:Seller Paying:EMD:EMD:2% Funding Fee:2% Funding Fee:

$100,000$100,000$105,000$105,000ALL Closing / Pre-Paid ItemsALL Closing / Pre-Paid Items$500$500$2,000$2,000

Can Finance: $102,000 and get $500 EMD back

Break it Down

Victor Bals734-417-2115

Vic@HVFloans.com

QUALIFYINGQUALIFYING

Debt to Income Ratios = 29/41Debt to Income Ratios = 29/41 Can go higher on DTI w/compensating factors: Can go higher on DTI w/compensating factors:

660 + credit score required660 + credit score required Payment shock consideredPayment shock considered Reserves considered Reserves considered

Rental / Housing history not required with Rental / Housing history not required with 620 credit or higher 620 credit or higher Victor Bals

734-417-2115Vic@HVFloans.c

om

OTHER CRITERIAOTHER CRITERIA

Do not own a dwelling currently Do not own a dwelling currently Lack sufficient resources to secure Lack sufficient resources to secure

conventional creditconventional credit US Citizen, Permanent Resident, Resident AlienUS Citizen, Permanent Resident, Resident Alien Have legal capacity to enter contractHave legal capacity to enter contract

PROPERTY ELIGIBLITYPROPERTY ELIGIBLITY

Must have access from a street, road Must have access from a street, road

or drivewayor driveway

Site value less than or equal to 30% of Site value less than or equal to 30% of

total value of home and landtotal value of home and land

Leasehold estates (where applicable)Leasehold estates (where applicable)

OTHER PROPERTY OTHER PROPERTY REQUIREMENTSREQUIREMENTS

Well & septic tested if county requiresWell & septic tested if county requires Water test for private wells required Water test for private wells required Escrow for repairs under certain limited circumstances Escrow for repairs under certain limited circumstances

and will be 150% of cost of the repairs held in escrowand will be 150% of cost of the repairs held in escrow New construction - must have warranty New construction - must have warranty

FUNDS AVAILABLEFUNDS AVAILABLE

Annual funds appropriated by Congress. Annual funds appropriated by Congress.

Have been known to run out before end of fiscal Have been known to run out before end of fiscal year. Congress must appropriate new funds for year. Congress must appropriate new funds for the program the program

Victor Bals734-417-2115

Vic@HVFloans.com

QUESTIONQUESTIONS?S?

Victor Bals734-417-2115

Vic@HVFloans.com

www.HVFLoans.com

Victor Bals734-417-

2115