| Updated 2010 Income Limits for the USDA Guaranteed Rural Housing Program (Eff. June 2, 2010) [Download Mortgage Talking PointsTM flyer, Six Common Deductions Allowed By USDA PLUS EXTRA BONUS: Income Eligibility Calculation Worksheet] — USDA Good News Effective 6210 June 2010
For “non-high cost counties”, the limits for households have increased $600. While not a big increase, it’s always nice to see an increase in income limits. Just remember, this is based upon “adjusted gross” and USDA allows deducts from the gross to qualify. Mortgage Talking PointsTM flyer, Six Common Deductions Allowed By USDA PLUS EXTRA BONUS: Income Eligibility Calculation Worksheet
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| USDA – SFH Underwriting and Loan Closing Reminders – April 7, 2010 [Link to Updated Forms] — April 2010
RD is providing additional clarification on “cash back” to borrower to hopefully minimize confusion on lenders part. A borrower is allowed to receive in “cash-back” at closing no more than that amount “documented”...period! Pro-rated property tax credits can still be applied as a credit to the borrower but it cannot result in more cash-back either. Also covered—reminder to use updated closing forms. [Link to USDA Forms Page]
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| USDA Underwriting and Loan Closing Reminders: Multiple Subjects (January 20, 2010) RD Instructions — February 2010
USDA has clarified some issues that have come up within the last several months. If you do Single Family Housing Guaranteed Loans, there are some subtle updates covering: Cash Back to Borrower At Closing; Grossing Up Non-Taxable Income; Short Sales; and intent to purchase a home!
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| USDA Announces 2 Pools of Funds for Refi’s — December 2009
Rural Development has provided us with a tremendous loan product and opportunity to assist your borrowers with our ability to refinance existing agency loans. By simply obtaining a new appraisal and fully documenting the file you can loan up to the appraised value plus the guarantee fee. Additionally the guarantee fee for refinance transactions is only .5% as opposed to the 2% guarantee fee for purchase transactions. Place an ad in your local newspaper to attract these leads!
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| USDA Flood Zone Waiver Authority Eliminated (Effective Immediately) — November 2009
This is a big deal for properties located in the 100-year flood zone. Gone is the ability for stats that had blanket waivers—to waive the requirements! If you have any of these loans in your pipeline, review it now.
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| USDA Clarifies Medical Deductions & Annual Income Calculations — October 2009
What triggered the notice was the fact that someone started a rumor—with RD offices receiving numerous calls and e-mails from lenders who had been told that they could deduct the pre-tax insurance premiums that employees were paying out of their gross annual wages. This false rumor began spreading across the United States and RD felt they had to send out a policy clarification.
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| USDA Provides Guidance on New versus Existing Homes – (Includes AN 4414 and AN 4364 Administrative Notices.) — August 2009
Evidently, mortgage companies and loan officers new to USDA housing don’t know the difference between a new and existing home. Okay, so it’s always good to remind people of the difference, but the real purpose of the memo was to bring to your attention, 2 references that make a great “refresher” for you to review.
(SFH Origination News - New Construction/Existing Construction - July 22, 2009)
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| USDA Requires Appraisal Form 1004MC (Effective July 1, 2009) — July 2009
It was going to be a matter of time before USDA joined in on the fun. What’s NOT mentioned is how USDA will “adjust” the value and loan amount, based upon the 1004MC. But, you have a small window of opportunity here.
(USDA - Single Family Housing Origination News - June 26, 2009)
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| USDA Now Allows In-Ground Swimming Pools - But May Reduce Loan Amount (Effective May 28, 2009) — July 2009
In-Grounds Pools Now Allowed – But, ask your local USDA about ARRA funds! What you don’t want to have happen is that you “think” the swimming pool issue is okay, then find out the ARRA money is being used to fund the loan—it’s an automatic reject!
(USDA RD AN 4442 - May 28, 2009)
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| Expect U/W Delays - USDA Single Family Housing Guarantee Loan Program — June 2009
Could be weeks in underwriting! Warn your clients and real estate agents. Check closing dates. Get those contracts extended.
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| USDA Increases Income Limits for SFHGLP. (Includes - Mortgage Talking PointsTM flyer Quick Guide to Rural Housing Loans.) (Effective April 20, 2009) — May 2009
Before you tell your first time homebuyers that “FHA is the way to go”, new income limits could make this the first option you recommend. Yeah, the property location is important, but you’d be surprised what areas qualify for Single Family USDA loans! Download a Mortgage Talking PointsTM flyer, Quick Guide to Rural Housing Loans.
(Rural Development - Single Family Housing Guarantee Program Letter - April 17, 2009)
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| USDA Rural Development Single Family Housing Funds Available - Mortgage Talking PointsTM "Quick Reference Guide to USDA Loans" (Effective March 20, 2009) — April 2009
$10 Billion (yes, that\'s billion with a B). The USDA has already used 25% for "purchase transactions" that have been on HOLD since 1/9/2009. When the "dust" settles, money will be released for refis. Not every community qualifies - but if yours does, it\'s the best thing since sliced bread! Links to check counties PLUS Mortgage Talking PointsTM "Quick Reference Guide to USDA Loans".
(USDA Letter "Single Family Housing Guaranteed Loan Program Available Program Funds", March 20, 2009)
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