USDA Rural Housing Fixed Rate Program Matrix: PURCHASE

Transcription

1 USDA Prgram Summary USDA Rural Husing Fixed Rate Prgram Matrix: PURCHASE Occupancy Units FICO/Credit Scre LTV/CLTV Primary Residence /NA RATE TERM REFINANCE Occupancy Units FICO/Credit Scre LTV/CLTV Primary Residence /100 Prgram Matrix Ntes: The ttal lan amunt after adding the Guarantee Fee may exceed 100% f the appraised value by the amunt f the Guarantee Fee. Prgram Detail AUS Prduct Guidelines GUS Apprve/Accept recmmendatins are allwed. Manual dwngrades are allwed; hwever, the Apprve/Accept recmmendatin findings must be included in the file. Manual underwrites are allwed. Lans must be ran thrugh GUS first and receive a Refer recmmendatin. The Refer findings must be included in the file. Age f Dcs 120 days fr existing and new cnstructin frm the date the nte is signed. Dcument age is measured frm the date f the dcument t the date the nte is signed. Credit dcuments include all incme, emplyment, asset infrmatin and credit reprts. Preliminary Title Plicies must be n mre than 180 days ld n the date the Nte is signed. Amrtizatin Type Fixed USDA Fixed Update: 5/6/2016 1

2 Appraisal transfers are permitted. The appraisal has a term f 120 days fr existing and new cnstructin. The term f the appraisal begins n the day the hme is inspected by the FHA appraiser. Appraisals cannt be re-used after the mrtgage fr which the appraisal was rdered has clsed. A new appraisal is required fr each refinance transactin requiring an appraisal. A 30 day extensin per USDA guidelines is allwed. Appraisals Unpermitted Prperty Additins Prperties with unpermitted structural additins are allwed under the fllwing cnditins: The subject additin cmplies with all investr guidelines; The quality f the wrk is described in the appraisal and deemed acceptable ( wrkmanlike quality ) by the appraiser; The additin des nt result in a change in the number f units cmprising the subject prperty (e.g. a 1 unit cnverted int a 2 unit). If the appraiser gives the unpermitted additin value, the appraiser must be able t demnstrate market acceptance by the use f cmparable sales with similar additins and state the fllwing in the appraisal: Nn-Permitted additins are typical fr the market area and a typical buyer wuld cnsider the "unpermitted" additinal square ftage t be part f the verall square ftage f the prperty. The appraiser has n reasn t believe the additin wuld nt pass inspectin fr a permit. USDA Fixed Update: 5/6/2016 2

3 Brrwers All brrwers must have a scial security number All brrwer must have n CAIVRS claim U.S. citizens Permanent resident aliens, with prf f lawful permanent residence Nnpermanent resident alien: USDA guarantees mrtgages made t nn-permanent resident aliens prvided that: The USDA ffice f jurisdictin must be cntacted t cnfirm brrwer s resident status is acceptable t USDA. The Scial Security card cannt be used as evidence f wrk status. Althugh Scial Security cards may indicate wrk status, such as nt valid fr wrk purpses, an individual s wrk status may change withut the change being reflected n the actual Scial Security card. Fr this reasn, the Scial Security card must nt be used as evidence f wrk status, and the EAD must be used instead. If the brrwer has < 2 years within the US, a cpy f the Passprt used t enter the cuntry and a cpy f the 1-94 issued by USCIS are required. If the brrwer has > 2 years within the US, a cpy f the current and previus EAD card is required. When utilizing a visa, a cpy f the unexpired visa and a cpy f passprt must be included in the lan file. I-797 dcuments can be utilized in lieu f a VISA if it meets the fllwing criteria: I-797 evidences an apprval fr an acceptable VISA class The apprval term is nt expired Visa extensin is current with an end date that meets Caliber Hme Lans plicy. Brrwers residing in the U.S. by virtue f refugee r asylum status granted by the USCIS are autmatically eligible t wrk in this cuntry. An EAD is nt required. Immigratin Classificatins and Visa Categries can be fund n the USCIS website. Nn U.S. citizens must be submitted thrugh SAVE. Buy Dwns N Temp Buy dwns USDA Fixed Update: 5/6/2016 3

4 Cndminiums Credit Apprved Fannie Mae (FNMA), Freddie Mac (FHLMC), HUD, r VA apprved Cndminium (Detached, Attached). Evidence f the attached cndminium prject s apprval by ne f these fur entities must be in the file. Prjects lcated in Hawaii Many prjects lcated in Hawaii are subject t grund leases. There are als prjects that will have a mixture f bth fee simple and grund lease units within the same prject. Many f the grund leases are nt cmpliant with FHA r VA. Therefre, it is extremely imprtant if the unit is subject t a grund lease, a cpy f the grund lease and all amendments, riders and subleases must be btained alng with ther applicable cndminium dcuments. If the grund lease is fund t be nn-cmpliant and the lessr is unwilling t agree t amend the lease t bring it int cmpliance with the applicable Agency guidelines, the grund lease cannt be apprved. Nn-Traditinal Credit is nt permitted All brrwers must return at least 1 credit scre via three-in-file merged credit reprt. At least ne brrwer whse incme r assets are used fr qualificatin must have tw tradelines that have existed 12 mnths. This plicy applies t lans apprved thrugh GUS. Nn-traditinal credit remains ineligible. Dergatry Credit Dcumentatin Fllw USDA guidelines Full Dwn Payment Assistance Emplyment/Incme Escrw Hldbacks Escrw/ Impunds Mrtgage Credit Certificates (MCCs) are nt allwed. Fllw USDA guidelines A verbal verificatin f emplyment is required. T determine if the brrwer s incme is eligible, visit Marijuana Related Business (MRB) emplyment and incme is nt permitted. Repair requirements utstanding n the appraisal reprt r required by the DE underwriter must be satisfied befre the mrtgage is submitted fr endrsement. All hldbacks must be cleared at delivery and a cpy f an amended HUD-1 / Clsing Disclsure shwing the disbursement is required with the lan file. If the hldback was due t appraiser required repairs, a cpy f a frm Certificate f Cmpletin is als required. An impund accunt fr cllectin f taxes and insurance (r additinal escrw items) is required. Escrw Waivers nt permitted. USDA Fixed Update: 5/6/2016 4

5 Exclusinary Lists All brrwers must be screened by CAIVRS t determine there have been n late payments n Federal debt bligatins. The HUD Limited Denial f Partnership (LDP) list and the General Services Administratin (GSA) lists must be reviewed fr all brrwers, sellers, realtrs (listing and selling agents), lan fficers r builders. FICO/ Credit Scre 620 Guarantee Fee High Cst/ High Priced Lien Psitin Maximum Lan Amunt Occupancy Pre-Payment Penalties Purchase Transactin Guarantee Fee f 2.0% f the Ttal Lan Amunt Annual premium f.4% f the Ttal Lan Amunt Refinance Transactin Guarantee Fee f 2.00% f the Ttal Lan Amunt Annual premium f.4% f the Ttal Lan Amunt Nt allwed First Cnfrming limit The ttal lan amunt after adding the Guarantee Fee may exceed 100% f the appraised value by the amunt f the Guarantee Fee. Primary Residence Pre-payment Penalties are nt permitted. Prperty Eligibility 1 unit Single Family (Detached, Attached) PUD (Detached, Attached) Apprved Fannie Mae (FNMA), Freddie Mac (FHLMC), HUD, r VA apprved Cndminium (Detached, Attached). Evidence f the attached cndminium prject s apprval by ne f these fur entities must be in the file. Leasehld T determine if the brrwer s prperty is eligible, visit USDA Fixed Update: 5/6/2016 5

6 Prperty; Ineligible Types In additin t the ineligible prperty types identified in HB , the fllwing prperty types are ineligible: Mbile Hmes Mdular Hmes Gedesic Dmes Unimprved Land and prperty currently in litigatin Incme prducing prperty, per USDA guidelines Prperty with Grain bins, sils, dairy farms, hb barns, multiple equestrian stables; farm service buildings, windmills, cell phne twers. Acreage site value must be typical fr the area per the appraisal. Must be nntillable r incme prducing. Multi-family (2 t 4 units) Cperative Manufactured hmes Rehabilitatin Lans Resale/Deed Restrictins Dwellings which are lcated clser than 300 feet t an active r planned il r gas drilling site r clser than 75 feet t an perating well. This applies t the site bundary, nt t the actual well lcatin. Prperties lcated in lava flw znes 1 and 2 Prperties lcated in avalanche slide r run-ut areas classified as Red Znes (black/extreme n sme maps) r Blue Znes (red/high n sme maps) Cmmercial enterprises Barding huses, htels, mtels, and turist hmes Cndtels Fraternity/srrity huses Private clubs Sanitariums Ratis Reserves Fr GUS apprved lans, ratis are as determined by GUS Fr manually underwritten lans: Maximum 29/41 DTI Debt rati waivers must be requested and dcumented in the file when the PITI is between 29 and 32 percent r the DTI rati is between 41 and 44 percent. If a debt rati waiver is nt included in the file, the lan file will be denied. N reserves are required fr USDA financing Can be cnsidered a cmpensating factr Sales Cncessins Sales cncessins cannt exceed 6% f the LTV/CLTV Secndary Financing N secndary financing allwed n purchase r refinance transactins. Existing secnd liens must be re-subrdinated n refinance transactins. USDA Fixed Update: 5/6/2016 6

7 State Restrictins Hawaii The Appraiser must review the U.S. Gelgical Survey (USGS) Lava Flw Hazard Zne maps. Prperties in lava flw znes 3 thrugh 9 are eligible fr financing with sufficient Hawaii Prperty Insurance. The Appraiser must reprt in the Cmments sectin that the prperty is in the Lava Flw Hazard Zne and prvide the Zne number. Texas 50 (a) (6) lans are nt allwed. Tax Transcripts Term Title Insurance Mst recent tw years tax transcripts required fr all husehld members age 18 r lder. 4506T must be cmpleted at lan applicatin. Generally, when the dcumentatin used t verify incme is frm the same calendar perid as the tax transcript, the infrmatin must match exactly. Hwever, if the incme dcumentatin is frm the current calendar year and the transcript is frm a prir year, there can be acceptable variances. If this variance exceeds 20%, dcument the ratinale fr using current incme. If tax transcripts are nt available (due t a recent filing) a cpy f the IRS ntice shwing N recrd f return filed is required alng with dcumented acknwledgement receipt (such as IRS fficially stamped tax returns r evidence that the return was electrnically received) frm the IRS and the previus year s tax transcript. An additinal 4506-T, signed at applicatin and clsing, is required fr all transactins per GUS findings. 30 year Required Transactin Types Purchase Rate/term Refinance Streamline and Cash-ut Refinances are nt allwed Restructured r Shrt Payffs This transactin may nt result in a mdified lan, restructured lan r shrt payff. The subsequent refinance f a mdified/restructured lan is allwed as lng as the lan meets standard rate term refinance requirements. USDA Fixed Update: 5/6/2016 7