USDA

Question 1

Max Ratios: USDA

Answer 1

29/41 manual underwrite w/ no mitigating factors, but may be exceeded with GUS approval

Question 2

Max LTV: USDA

Answer 2

100% (102% with financed guarantee fee)

Question 3

Absolute minimum credit score: USDA

Answer 3

None

Question 4

Max LTV: USDA construction that doesn’t meet IECC requirements

Answer 4

90%

Question 5

USDA: minimum amount of time elapsed after Ch 7 bankruptcy in order to qualify.

Answer 5

3 years

Or 12 months if BK was due to temporary circumstances beyond the borrower’s control (layoff, illness, delay or reduction in benefits), and if they’ve been resolved for at least 12 months by the time of application. The loan can also be considered if it will lead to a reduction in housing expenses of 50% or more.

Question 6

USDA guarantee fee;

Answer 6

1%

Question 7

USDA annual fee:

Answer 7

0.35%

Question 8

Can a USDA loan proceed with collections totalling more than $2,000?

Answer 8

Yes -

 The collections can be (a) paid in full, (b) placed on repayment plans, or (c) the lender can add a 5% payment to dti calculations.

Question 9

USDA: Minimum amount of time elapsed since foreclosure.

Answer 9

3 yrs

Question 10

USDA: Can the borrower qualify if he or she owns and is retaining another property?

Answer 10

Only if the current property is inadequate to meet their needs. You must document a recent change in status that rendered the property inadequate (borrower’s family has grown so that there are more than 1.5 people per room, borrower or another permanent household member is disabled and the property is not suited for them, borrower is relocating due to work).