Real Estate Agent Financing Cheat Sheet

 USDA $0 Down (Rural Development Loan):

• 620 minimum credit score, a 640 or higher gives us more flexibility with debt to income ratios
  

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• 6% max seller concessions
• Loan amount can go up to appraised value! (good for covering closing costs if sales price is less)
• Check the eligibility of a property on Google by typing “usda eligibility”
• Mortgage insurance is .5%, and decreases yearly based on principal owed (will go down soon)
• Household income limit of $82,,700 for a household of 4, $109,150 for a household of 5, certain deductions apply to reduce the income if your client is close, no loan max
• No manufactured homes unless new and never lived in for an existing set up
• USDA hotline # for current turn times, 352-338-3421

FHA 3.5% down or more:

• 600 minimum credit score, (lower can be approved)
• 6% max seller concessions
• Can’t finance repairs unless you do a 203k rehab loan, escrow holdback up to 5k for repairs.
• Mortgage insurance at .85% is now permanent! m.i. rates are lower with more $ down, or lower term
• No geographic limitations
• Manufactured homes can be financed using the FHA program back to 1976, Tie downs need to be up to code, inspection for this can be waived with conventional financing
• Max loan amount for Marion, Alachua, Lake, and Citrus county is $294,515 for single family home

Conventional Financing:

• 620 minimum credit score
• 5% min down payment, pmi based on credit score and down payment size, no pmi at 20% down, 3% down available for first time home buyers.
• 75% LTV and lower = 9% allowable Seller’s concession
• 75.01 – 90% LTV = 6% allowable Seller’s concession
• 90.01 LTV and higher = 3% allowable Seller’s concession
• Investment properties max is 2%, 20% down payment required, better rate with 25%, 15% down possible
• 2nd homes need 10% down payment
• Manufactured homes can be financed using conventional financing without engineering cert, 5% down for primary residence and 10% for a second home.
• $453,100 max loan amount

VA (Veterans Association, No Money Down Loan):

• 620 minimum credit score (lower can be approved)
• All closing costs can be paid by the seller within certain parameters, call for details
• No monthly mortgage insurance
• No geographic limitations, 2nd home allowed in some cases

Self Employed Mortgage Options:

• 1 year of tax returns possible if self employed for 5 years or more.
• Bank Statement Programs available with 10% down requiring 12 months of bank statements for income, only deposits are counted so what’s spent doesn’t matter. Scores down to 600.