USDA USDA Financing

Who is Fairway We are a national Lender 11 th largest mortgage lender in the Nation - (Origination News) We just do mortgages You get local service We can close loans in 30 days or less We have great rates TeamHadley

Basic USDA Guidelines Buyer education courses are required Property must be in an eligible area – Almost all of Dillsburg – A lot of Mechanicsburg – A lot of York and Adams County – All of Perry County Client must have household income that is less than 80% of the median income in the county they are buying

Basic USDA Guidelines Property requirements

Basic USDA Guidelines

Must be a single unit No Mobiles No farms Must be owner occupied Can finance repair cost up to 100% of the appraised value Septic inspection is only needed if the property is vacant

Basic USDA Guidelines In-ground swimming pools require local RHS office exception Private well requires water test Can get 6% seller assist for closing cost Can finance closing cost if the value is higher than sale price Down payment assistance/grants are ok 401k loans not counted in DTI

Basic USDA Guidelines 100% gifting permitted from disinterested 3 rd party No Reserves required Can own one other property but the USDA financed loan must be their primary residence Max DTI 45% if we have a GUS approved loan – Can be expanded if we have compensating factors

Basic USDA Guidelines Credit Requirements – Must be out of Chapter 7 BK for 3 years – Chapter 13 Can do if we get permission from the courts – Minimum score of 620 for PHFA. We prefer at least a 640 – No collections, charge-offs or judgments in last 12 months – At least 36 months out of foreclosure

Basic USDA Guidelines Credit Requirements (con’t) – Installment debt can be discounted if less than 6 months remain or we can prove that someone else has been making the payment for at least 1 months – Student loan debt must be included in DTI even if it is deferred. Can use 1% of the balance if no payment can be established

Basic USDA Guidelines Up-Front Guarantee fee of 2% Monthly Guarantee fee of.4% for the life of the loan