govt loan training usda fha va b wills

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




SFR, Condo, Town Home,

2- 4 Unit (excludes USDA)

No Manufactured Homes

USDA

VAFHA




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




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




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




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




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




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!!!




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


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





WAYS TO PROMOTE A LISTING

SOCIAL MEDIA

Facebook

Twitter

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. Revised 1.26.11C

govt loan training usda fha va b wills

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