PROGRAM BENEFITS

Financing

103.5% financing based on appraised value

Term

30-year fixed

Mortgage insurance

No monthly mortgage insurance. One-time guarantee fee of 3.5%

Payment reserves

No payment reserve requirements

Downpayment

No downpayment

First-time homebuyer

No First-time homebuyer requirement

Seller concessions

No maximum. If greater than 6%, comment from the appraiser required

Gifts

100% gifting permitted. Donor must be disinterested third party.

INCOME AND RATIOS

Ratios

29/41 – exceptions encouraged with compensating factors and RD concurrence

Non-occupant Co-borrower

Non-occupant co-borrowers not permitted unless approved by RD

Installment debt

Include all installment debt greater than 6 months

Primary income

Two-year history

Self-employment

Two-years 1040s and P&L

Alimony/child support

12-month history, with proof of 3 years continuance

Part-time, Over-time & Bonus

12-month history