govt loan training usda fha va b wills
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WR STARKEY
Mortgage University
FHA/VA/USDA
We will go over informative and up to date guidelines on
government loan programs. With the affordability of these
products and this market, we have seen a large increase in
buyers that are looking for low down payment options that are
not as credit restricted as conventional home loan programs.
WELCOME TO
GOVERNMENT LOANS 101
GOVERNMENT LOAN PROGRAMS
USDA U S Department of Agriculture
FHA Federal Housing Administration
VA Department of Veterans Affairs
KNOW THE DIFFERENCE
Loan typeRequired Down
PaymentMI and Funding
FeeSeller
Contributions
USDA ZERO -0% 2%* Up to 6%
FHA 3.5%
1.75% upfront
Annual MIP varies**
Up to 6%
VAZero/0% for Eligible Vet
2.15% to 3.3%
0% - Disabled vet
4% plus
$1650 in
Vet non-allowable
*Amount shown is for purchase loans only. **Amount is for purchase loans only, the Annual MIP varies based on the loan , contact your licensed Mortgage Professional for more details. Designed
by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of financing. All
borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are subject to
change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 07.25.12C
CREDIT SCORE REQUIREMENTS*
FHA•580 FICO - restrictions apply**
USDA• 640 FICO
VA• 620 FICO
*Credit Score thresholds for loans currently offered by WR Starkey Mortgage. Other lenders may offer FHA loans with credit score thresholds above or below
WR Starkey Mortgage’s. **580 FICO applies to certain FHA transactions, for qualifying details contact your licensed mortgage professional.
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
BASIC CREDIT QUALIFICATIONS
• BANKRUPTCY – MUST BE 2 YEARS FROM DISCHARGE
• FORECLOSURE – MUST BE 3 YEARS FROM DATE OF FC
• JUDGEMENTS/LIENS – MUST BE SETTLED OR PAID PRIOR TO CLOSE
• DELINQUENT FEDERAL DEBTS – MUST BE CAUGHT UP &/OR PAID OFF
• MUST VERIFY ANY NEW DEBTS OPENED PER INQUIRIES
• CREDIT IS NORMALLY RE-PULLED PRIOR TO CLOSING
• DISPUTED ITEMS MUST BE CLEARED
• OLD COLLECTIONS/SLOW PAYS
• If over 24 months usually ok unless disputed
• 01-24 months old – uw discretion
• Medical collections usually ok unless disputed
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
SFR, Condo, Town Home,
2- 4 Unit (excludes USDA)
No Manufactured Homes
USDA
VAFHA
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
USDA
Appraisal must be done by LOCAL FHA roster Appraiser
Must meet thermal standards
Septic/Structural/Pest inspections may be required
May be able to roll cost of repairs into loan amount if repairs are completed prior to closing
In ground pools will affect value
FHA
Appraisal must be done by LOCAL FHA roster Appraiser
If appraisal has required repairs, must be done before closing (exception may be made on a foreclosure)
Septic/Structural/Pest inspections may be required
Lead base paint must be cleared
90 day rule on flipping
VA
VA assigns a LOCAL VA appraiser
Pest Inspection is required
If Appraisal has required repairs, must be done before closing
Septic Inspection will be required
Structural Engineer Report may be required
VA UW issues a Notice of Value
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
REPAIRS REQUIRED BY LENDER
• House must be livable on all types of home loans
• No major renovation needed
• Built in appliances must be present
• Foundation must be structurally sound
• Safety concerns must be addressed
• House must be insurable
• House built before 1978 may have lead based paint issues
• House must have a source of heat
• Utilities must be turned on for appraisal
• All weather road or driveway – private roads are ok
• Acreage ok per comparable sales in area
• USDA (acres 2+) if land value is more than 30% of total value
then land cannot be subdivided
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
HTTP://ELIGIBILITY.SC.EGOV.USDA.GOV
Eligibility Income includes gross income of borrower, co-borrower and any other adults in the household
regardless of whether they are on the note
Qualifying Income includes income of only the borrowers who will be on the note
Earned income of a minor is not included in Eligibility or Qualifying Income ; however, child support or income
earned by a spouse who is a minor is included
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
Income must be stable and have a continuance for the future
Self Employed borrowers are
eligible with a 2 year history of
filing taxes
Non-Occupying
Co-borrowers are allowed to help with Debt
to Income Ratio requirements
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
Borrower must be in same line of work for 6 months or on current
job for 6 months
Return to
Workforce is ok
Stable continuing income is required
Social Security
& Disability
Income is ok
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
ASSETS
Tax Refund
Gift Fundsallowed from family members,
employers, church, municipality or family friend
Secured Loan
Cash on hand is NOT acceptable even for earnest
money!!!
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
USDA
6% Maximum Seller contribution
Can roll in closing costs to 100% of appraised value
May receive a gift from family for full amount of closing costs
Gift cannot be from a member of household
FHA
Up to 6 % Maximum Seller contribution
Buyer must make their 3.5% down payment from own funds or gift from family
Can use community seconds grant to pay for closing costs if borrower qualifies
May receive a gift from family for full amount of closing costs
Gift of Equity when buying from family
First Time homebuyer programs
VA
4% Seller contribution
Seller can pay survey above 4% of closing costs
Seller must pay for non-allowable costs for Vet that total around $1650
Can use community seconds grant to pay for closing costs if borrower qualifies
May receive a gift from family for full amount of closing costs
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
WAYS TO PROMOTE A LISTING
SOCIAL MEDIA
LinkdIN
Active Rain
ON THE DOT DESIGNS
Open House flyers
Property Listing
Postcards
Database Mailings
Joint Marketing
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. This is not a guarantee of
financing. All borrowers must meet certain underwriting guidelines and credit criteria. Rules and Regulations may apply. The USDA, FHA and VA Program s details disclosed in this presentation are
subject to change without notice. Please consult your Licensed Mortgage Originator for the current terms and conditions of the USDA FHA and VA Program s. Revised 1.26.11C
Designed by WR Starkey Mortgage, LLP NMLSR #2146. Any reproduction without the express written consent of WR Starkey Mortgage, LLP is strictly prohibited. Revised 1.26.11C
NOTES
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