USDA is an equal opportunity provider, employer, and lender.

Transcription

1 USDA is an equal opportunity provider, employer, and lender.

2 The mission of USDA Rural Development is to increase economic opportunity and improve the quality of life for all rural Americans.

3 WHAT SERVICES DOES RURAL DEVELOPMENT PROVIDE IN NEBRASKA? Rural Development s Four Program Areas: Housing Programs Single Family Multi Family Community Programs Business and Cooperative Programs Rural Utilities Service

4 Lack of Cash reserves for down payment Inability to meet housing costs Lack of available housing or sub-standard existing housing Availability of suitable financing WE CAN OVERCOME THESE BARRIERS TO ASSIST FAMILIES TO OBTAIN AFFORDABLE HOUSING

5 LENDER OF FIRST OPPORTUNITY IN RURAL NEBRASKA

6 FUNDING: $199.6 Million Delivered in Fiscal Year 2016

7 $100,202,318 = 994 Rural Nebraska Families Realizing the Dream of Homeownership and Increasing Economic Activity Who are we serving: Served 71 counties, with 80.8% of funding going to rural non metro counties Approximately 88.9% first time homeowners Approximately 77.7% moderate income; 22.3% low/very low income Approximately 12.7% minority populations

8 Realtors Lenders NIFA Nebraska Housing Developers Non Profit Organizations (down payment/closing cost assistance, purchase/rehab/resale) DED (CDBG, HOME, TRUST) HUD Federal Home Loan Bank Nebraska Assistive Technology

9 Social & Economic Benefits by Stabilizing Families Allows Families to Build Assets Establishes Pride of Ownership Broadens Tax Base & Helps Attract Residential & Commercial Development

10 COMMUNITY MEETINGS: Hometown Housing Opportunities Building Communities Together $120 Million Available for Homeownership & Home Repair Programs 26 meetings held last year More to come this year!!! Contact us to get YOUR COMMUNITY on the schedule!!!

11 So what is the meaning of Rural for Single Family Housing programs?

12 Two Distinctly DIFFERENT Programs 502 DIRECT Loan 502 GUARANTEED Loan

13 ** 100% FINANCING! ** Primary goal is to provide affordable quality housing to income eligible households (include ALL income for ALL HH Members) New construction or existing dwellings Mortgage Limits (by county) 33 Year Loan Current interest rate of 3.25% (March 2017) (Payment assistance/subsidy can reduce interest rate to as low as 1% depending on income) Can finance repairs & closing costs (if appraisal supports) Loans are originated by USDA Rural Development offices (Centralized Processing)

14 DIRECT INCOME GUIDELINES & PILOT BANDING PROGRAM EFFECTIVE 06/15/16

15 DIRECT MORTGAGE LIMITS: County Cass, Douglas, Sarpy, Saunders, Washington, Lancaster & Seward Loan Limit $190,000 Cheyenne $185,000 Platte, Madison & $180,000 Stanton All Other Counties $170,000

16 Larger Homes = Higher utilities, taxes, insurance, maintenance, etc. Modest = 2,000 sq ft. YES, exceptions CAN be made in certain circumstances

17 CREDIT An applicant s credit record does not have to be perfect; a few instances of credit problems MAY be acceptable if an applicant s overall credit record demonstrates an ability & willingness to repay obligations. Generally, a reliable credit score of 640 or higher. Lower scores require some additional evaluation. Can build a Non Traditional or Alternative credit history.

18 Norfolk Janell Wyant Scottsbluff Tammy Strey Deb Suhr Kearney Mike Vukas Lincoln Jill Divelbess *Rebecca Adams * Also for Spanish speaking

19 Pre Qualification Form OR Contact a Loan Specialist for a verbal pre qual Results of the pre qual are NOT binding as are not based on VERIFIED Information

20 This program is budget neutral and does not rely on tax payer dollars.

21 **100% FINANCING!!** NOT just for first time homebuyers Approved lenders Income eligibility requirements(include ALL income for ALL HH Members) 30 year fixed rate Interest rate negotiated with lender 1% GRH Fee Can be financed (101%).35% annual fee NO maximum mortgage limits Finance necessary repairs & eligible closing costs (as supported by appraisal) Participation with NIFA available

22 The APPLICANT is the customer of the LENDER. The Lender is the customer of Rural Development. Rural Development places a guarantee on the loan to the Lender. Apply directly with the approved lender of choice. All communication regarding that application is between the parties involved and the LENDER

23

24 CREDIT The lender must investigate all major incidents of derogatory credit and if there is an acceptable explanation that may justify an exception. Generally, a reliable credit score of 640 or higher. Lower scores require some additional evaluation by lender. Can build a Non Traditional credit history.

25 A list of Approved Lenders may be found on our NE Website or by contacting any office.

26 FHA RD-GRH RD-GRH w/nifa RD-Direct (full note rate) RD-Direct (full subsidy) 1.75% Upfront 1% Upfront 1% Upfront Fee Structure.85 Annual.35% Annual.35% Annual $0 $0 Term 30 Years 30 Years 30 Years 33 Years 33 Years Interest Rate 4% 4% 3.50% 3.25% 1% $3,500 $0.00 $0.00 $0 $0 Down Payment (3.5%) Up Front Fee $1, $1, $1, $0 $0 Principal & Interest Payment $ $ $ $ $ Annual Mortgage insurance $68.35 $29.23 $29.23 $0 $0 TOTAL $ $ $ $ $296.58

27 What can you get for $500 (*P&I)? RD 4% = $98,000 ($ $0 Down) RD 3.25% = $122,000 ($ $0 Down) RD = $170,000 ( $0 Down) *Principal & Interest Only, does not include property taxes or insurance

28

29 Loan funds can be used to improve or modernize dwelling as well as removal of health & safety hazards (must be primary owner occupied residence) Income eligible households Loans fixed 1% interest rate Up to 20 year term Maximum outstanding loan amount = $20,000 A deed of trust & title service is required on loans exceeding $7,500 Leverage with partners to provide maximum utilization of funds

30 Grant funds can only be used to remove health or safety hazards, or remodel dwellings to make them accessible to household members with disabilities. (must be primary owner occupied residence) Income eligible households Grants are only available to homeowners 62 years of age or older Lack repayment ability for a loan Maximum lifetime grant = $7,500 Requires 3 yr Grant Agreement

31 NEW 504 REPAIR INCOME LIMITS & BANDING PILOT PROGRAM EFFECTIVE 06/15/16

32

33

34 Simply go to the Nebraska website and click on the picture link found at the bottom of every page:

35 USDA Rural Development is an Equal Opportunity provider, employer and lender.