Fixed: 30 Yr. only
All loans are run through GUS (Guaranteed Underwriting System). Must be
located in an eligible location http://eligibility.sc.egov.usda.gov/eligibility/
Manual underwriting allowed on an exception basis. Technically a manual
underwrite is considered an exception.
USDA files cannot have multiple exceptions when a file has to receive a
All USDA files will need 2 months bank statements regardless if funds are
needed or not needed for closing.
600 - Lower of 2 or Middle of 3 repositories. (580-599 exception only)
640 and below credit scores require a manual underwrite. (GUS will not
approve 640 and below)
No minimum down payment required- but asset verification is still required
Maximum 6% of sales price
Borrowers who choose to make a down payment may use a Government or
Municipal Down Payment Assistance Program (DAP).
N/A No Reserves
If Credit score is > 640 then follow GUS Findings. If Credit Score is < 640 need
verification of rent (cancelled checks or 3rd party Institution)
Owner Occupied Primary residence only.
Debt to Income Ratio
Must maintain Gus Accept Findings – typically maximum 43% DTI, Credit score
less than 640 – DTI must not exceed 29/41
Minimum 2 Years discharged if a result of extenuating circumstances. Minimum 3
Years discharged if a result of financial mismanagement. Multiple Bankruptcies
are not permitted.
Minimum 3 Years completed. Delinquencies since Foreclosure discharge will be
scrutinized and may result in an ineligible loan.
Single Family Attached and Detached, Condo, PUD
Condominium must be currently approved by HUD (FHA).
1.00% Up front guarantee Fee as of 10/1/15, .35% Annual Fee
Not applicable. Program is available on Purchases/ Rate and Term only.
Full Appraisal is required. Appraisals must be ordered via Mortgage Machine or
approved AMC. Appraisal must meet HUD standards
Escrow of Tax, Insurance and MIP are required on all loans.
Flip transactions are eligible
Borrower may own additional property however the other property must be
deemed inadequate (increased family size, family needs, and safety hazards) or
other property must be more than 50 miles away from the subject
Must be an Arm’s Length transaction. Must prove the loan is not a bail out if a Non
Arm’s length transaction