RURAL DEVELOPMENT_ USDA - USDA Rural Development

							                   RURAL DEVELOPMENT, USDA
Guaranteed residential loan product

The advantages:

    Loan up to 103.5% of appraised value when 3.5% fee is wrapped into the loan.
        o Wrap closing costs in when appraisal exceed contract (loan not limited to
            contract)
    No MI.
    No credit explanations when credit score is 620 or above.
    No minimum credit score.
    No reserves required.
    No cash contribution required from borrower.
    Unrestricted gifts, no need to document source.
    No max loan amount.
    Ratios are 29/41. Liberal ratio waivers with documented compensating factors.
        o 31/43 for homes built post January 1, 2001.
    No limit on CLTV
    Non-traditional credit may substitute for lack of traditional credit history.
    Not limited to first-time home buyers.
    High earnings potential.
    Very competitive rates (set by underwriting lenders).
    Available secondary markets: wholesale lenders as well as Fannie Mae and
     Freddie Mac.
    Delegated underwriting for D.E. FHA, Fannie, Freddie, and VA approved
     underwriters.
    30-year fixed rate loan.
    No special Agency approval necessary for appraisers and builders.
    Local friendly Agency staff available to answer questions and assist with
     seminars and training.

NOTE: Wholesale lenders may have restrictions based on their secondary marketing
requirements.




6/26/2011