DRAFT Guaranteed Residential Housing - Single Family -
Home Buyer Benefits • 102% LTV • 30 Year Fixed Best Rate • No down payment • No Loan Limit • Wrap in prepaids/closing costs • NO seasoning of title • Retain cash reserves • Yes, families really can move in with $0 out of pocket investment. wow wow
For Lender • Dramatically increased market • Can use subordinate funding sources • No limit on total RE debt • Can loan for repairs/improvements • Uninterrupted allocation of funding • Automated underwriting assistance with GUS (Guaranteed Underwriting System) • Paperless interchange with RD (email minimal materials). • Lender makes underwriting decision without hassle of special underwriter certification. • Excellent secondary market
For Lender Income calculator and maps accessed at: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do Sign up for receipt of future product updates: http://www.rdlist.sc.egov.usda.gov/listserv/mainservlet Check the first two boxes and the very last one (for FL)
What’s new Oct 1? • Guarantee fee: on Refi loans increased from .5% to 2.0% • Based on FINAL loan amount • Annual servicing fee – both purchase and refi • 0.4% (.004) of average unpaid principal balance • Billed at end of each year • Based on amortized payment schedule for the • previous twelve payments • For term of loan (not variable) • NOT CHANGING at this time: MAPS • Perhaps will change later, to be announced • Congress may act on this issue
Prohibited Purposes • Existing Manufactured Home • No refinancing EXCEPT: • Current RD loan (Direct or Guaranteed) • Balance owed on purchase of lot for construction loans is OK • No cash back except for pre-paids and contract deposit included into the loan amount
the end Thank you!