At McCue Mortgage we have always been able to do USDA or Rural Loans as they are also known, in conjuntion with a Connectiticut Housing Finance Authority Loan (CHFA), but not the stand alone or also know as a Market Rate USDA Loan. The difference between the two is that CHFA/USDA is only available to First Time Homebuyers and the stand alone USDA Loan is available to everyone, as long as it is their only home. However, as of October we will be able to do both the stand alone USDA and CHFA/USDA Loans for our Borrowers in Connecticut.
This is a great opportunity for us at McCue Mortgage because now we are able to offer to both our First Time Homebuyers and Existing Homebuyers a no money down 100% finance loan product. We will be following the USDA Guidelines with the exception of Credit Scores. USDA allows for a 620 Credit Score, but we will be requiring a 660, otherwise all other USDA Guidelines will be followed.
New USDA/Rural Guarantee FEE & Monthly MI As of
October 1, 2011
USDA allows a Borrower to Borrow:
- Up to 102% Loan To Value (LTV).
- Can role in Closing Costs & Repairs if it can be supported by the appraisal.
- Does not have a maximum purchase price.
- .40 Monthly Mortgage Insurance (PMI).
- Qualifying Ratio's are 29/41 and above with a Ratio Waiver.
- Minimum 660 Credit Score.
Properties that are eligible for USDA loans are:
- Existing homes
- Condominiums
- Townhouses
- 1/2 of a duplex
- Modular homes
- New construction.
- New manufactured homes built to HUD Code.
Even though USDA does not have Sale Price Limits, it does have Income Limits by household size, and they may differ from County to County and State to State. Income Limits Include:
- ALL household income.
- Seasonal/Overtime/Bonus income may be averaged based on verified history.
- Pending pay increases may be used as a compensating factor.
USDA Appraisals are done by FHA approved Appraisers and share many of the new FHA relaxed appraisal requirements, as well as further relaxing requirements of their own:
- Missing Handrails
- Cracked windows
- Dripping faucets
- Peeling paint on door frame/windows (only for houses built post 1978)
-
Flat roof on garage, if it could not be inspected
- No smoke detectors
- No GFI's in kitchen/bathrooms
Additional Inspections that MAY apply:
- Septic - only if the Appraiser/inspector requests it.
- Well Water - ALWAYS test well water.
- Termite inspections are only required if State Law requires them, or the Appraiser/Inspector sees active infestation.
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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