Guaranteed Rural Housing Loans

Transcription

1 Guaranteed Rural Housing Loans The USDA prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual s income is derived from any public assistance program. Persons with disabilities who require alternative means for communication of program information (Braille, large print, auditotape, etc.) should contact USDA s TARGET Center at (202) (voice and TDD) To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, S.W., Stop 9410, Washington, DC , or call toll free at (866) (English) or (800) (TDD) or (866) (English Federal relay) or (800) (Spanish Federal relay). USDA is an equal opportunity provider and employer.

2 USDA - Rural Development Says Thank You! To Nevada Superintendents

3 3 Lines of Business Affordable Housing Business Development Community Facilities and Utilities Today s Focus: Guaranteed Home Mortgage -- a tool for teacher retention

4 Why are we talking to Educators about Homeownership? 1. Homeowners move far less frequently than renters, and hence are embedded into the same neighborhood and community for a longer period. 2. Consistent findings show that homeownership does make a significant positive impact on educational achievement. 3. Homeowners have a much greater financial stake in their neighborhoods than renters. 4. Homeowners are happier and healthier than non-owners. 5. Research on crime and homeownership shows that homeowners are far less likely to become crime victims. (Source: NAR Research Division, August 2010) We re offering to bring this information to your teachers and your school families

5 Why wouldn t t a homebuyer choose RD first? Wants to buy in an ineligible area Makes too much money The Guaranteed Rural Housing Program is the best 100% loan available!

6 FHA 3.5% down; min. 640 FICO 1.0% UFMIP % annual premium $1, Out-of-Pocket Cost: $6,125 RD Guarantee; 102% LTV; 0.3% annual fee; no min. FICO score; $ Out-of-Pocket Cost: $0 ($163.51/month difference from FHA!!) And for first-time homebuyers (who have not owned a home in the past three years)... RD 102% LTV; 0.3% annual fee with MCC Tax Credit Savings $ Out-of-Pocket Cost for MCC fees: $1,800 (another $166.66/month savings!) The home buyer who uses RD s guarantee plus Tax Credit savings could add over $330/month to their disposable income! March 2012

7 FHA 1.00% down $1250 min. 640 FICO 1.0% UFMIP % annual premium $ RD Guarantee; 102% LTV; 0.3% annual fee; $ RD with MCC Tax Credit Savings $ This staff member, using RD s guarantee plus Tax Credit savings and DPA could add almost $300/month to their disposable income! And a person earning $27,460/year could qualify! March 2012

8 Mortgage Credit Certificates What is it? Home at Last MCC provides a dollar-for-dollar federal income tax credit equal to 20% or 35% of the interest paid on a mortgage loan. The tax credit is given to the homebuyer every year as long as they live in the home. Loans of $190,000 or less will receive a 35% credit and loans of more than $190,000 will receive a 20% credit. Who qualifies: First-time homebuyers or qualified veterans who will live in home as primary residence; Households meeting income qualifications and normal FHA, VA, Conventional or RHS underwriting requirements; Home purchase is in rural Nevada (population fewer than 100,000) and falls below maximum price (set by county) Where can I get more information?

9 Qualifying

10 Eligibility Income Eligibility for Lyon County 1-4 Person Household: $75, Person Household: $100,200 Qualifying Ratios 29% PITI, 41% TD (Principal, Interest, Taxes, Insurance; Total Debt ) Acceptable Credit History No Cash Reserves required

11 Highlights for Buyers 30-year, Fixed Rate Mortgages 2% up-front Guarantee Fee Loans up to 102% LTV Interest Rates Negotiated with the Lender Loan amount dictated by repayment ability (no loan limit!) Closing costs can be financed Low annual fee of.30%

12 Example: Double Income Two seasoned teachers earning ~$44,000 per year each with $600/month in other debt payments and 3 children Earning approx. $88,000 / 12 months = $7, / month RD + MCC principal and interest payment on $175,000 home = $ Monthly taxes and insurance = $200/month Total PITI payment = $ QUALIFYING RATIOS $ PITI / $7, = 13.53% ($ PITI + $600 other debt) / $7, = 21.71%

13 Example: Single Income Beginning teacher earning ~$28,000 per year with $200/month in other debt payments; no children $28,000 / 12 months = $2, / month RD + MCC + DPA; principal and interest payment on $125,000 home = $ Monthly taxes and insurance = $150/month Total PITI payment = $ QUALIFYING RATIOS $ PITI / $2, = 28.87% ($ PITI + $200 other debt) / $2, = 37.44%

14 Next Steps up to you! Provide program information to school employees -- see flyer -- Survey school employees Upload information to District / PTA websites (CD is in your packet) We will be happy to attend and provide information in a District staff meeting

15 Other Homeownership Services Direct Loans made direct from RD to the home buyer; serves low and very-low income clients; limited funding 504 Repair Loans and Grants provides repair funds to verylow income homeowners Rural Refinance can provide streamlined refinancing opportunities for homeowners who already have a USDA loan Contact RD field offices for information or go to Foreclosure mitigation / avoidance information see links and information at

16 THANK YOU FOR SUPPORTING THE GUARANTEED LOAN PROGRAM! Diane Arvizo- Rural Development Technician Phone: (775) x116, TTY Counties: Churchill, Douglas, Lyon, Mineral, Pershing, Storey and Washoe Anne Bostick - Rural Development Specialist Phone: (775) x110 anne.bostick@nv.usda.gov Counties: Elko, Eureka, Humboldt and Lander Elias Askins - Rural Development Specialist Phone: (702) x113 elias.askins@nv.usda.gov, Counties: Clark, Nye, Lincoln, White Pine and Esmeralda Thomas Stephens - Area Director - Las Vegas Phone: (775) x110 thomas.stephens@nv.usda.gov Heather Simola - Specialist - State Office Phone: (775) x107 heather.simola@nv.usda.gov For all offices Nevada Relay TTY/English/Spanish is available by calling 7-1-1