QUICK GUIDE GUARANTEED RESIDENTIAL LOAN USDA, RURAL DEVELOPMENT – FL/VI
Updated July 5, 2011
Features
Benefits
No down payment
Borrowers without savings, or who wish to retain their savings qualify
100% financing
100% LTV without the fee included. Exceed 100% by amount of RD fee financed.
Loan not limited by contract
Wrap closing costs into loan when appraisal is higher than purchase price.
No limit on TLTV
Junior liens are allowed for closing cost or down payment assistance.
No reserves
No need for seasoned funds, bank statements, or bank accounts
Base ratios 29/41 Expand to 31/43 homes built post Jan 01
Customers with satisfactory credit may qualify with higher ratios to accommodate high costs housing areas, etc.
One time guarantee fee can be rolled into the loan
Fee amount can be always included regardless of appraised value with reasonable repayment ability. Fee is 3.5% until October 1, 2011. Reduced to 2% on Oct 1.
Generous income limits based on 115% U.S. median income (not based on HUD area limits)
Deductions are available for dependents, daycare, elderly households, etc. to assist individuals and families in qualifying for the loan. See chart on next page.
No maximum purchase price
Clients choose the home that meets their needs and repayment ability.
Not limited to first time buyers
Cannot own suitable property in the local commuting area.
Unrestricted gifts
No limitation on source of funds for closing costs. No seasoning requirement.
Education/training substitute for job tenure.
Income history requirement is waived.
Lowest payment next to VA
Best rate; 30-yr fixed term; less eligibility issues
No restriction on title history
Time seller held property is not an issue.
Test every customer for Rural Development eligibility:
• Is the property in an eligible area? Check address at: http://eligibility.sc.egov.usda.gov Click on ‘single family’ under the link “Property eligibility”. Type in address or go to map. Pinellas, Monroe, and Broward Counties are not eligible.
• Is their household income within the Agency limits? See the chart. Use the fast easy calculator at http://eligibility.sc.egov.usda.gov Click on ‘single family’ under ‘Income Eligibility’
• Do they have reasonable credit? Your lender’s underwriter makes the credit decision. Our streamlined processing does not require credit explanations if the FICO is 640 or higher (EXCEPT with recent BK, FC, FED debt). Alternate credit is acceptable. 580 and below would be rare. A 670+ score is a stand-alone compensating factor. The lender’s underwriter makes the final decision on creditworthiness.
• Do they have reasonable repayment ability? Ratios are 29/41% (31%/43% for homes built after Jan 1,
2001) but can be waived when it makes sense.
No PMI: However, beginning October 1, 2011, a .3% (.003) annual fee will be assessed.
Rural Development is a direct guarantor. There is no mortgage insurance and the Guarantee remains at the maximum of 90% of original principal borrowed.
Rate and Term: 30 year fixed, very competitive conventional rate
Maximum adjusted gross household income: UPDATED EFFECTIVE JUNE 28, 2011
Project the cumulative gross income of all adults in the household.
THE TOTAL INCOME CAN BE MUCH HIGHER THAN THE ADJUSTED INCOME LIMITS
If total income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 or younger. You can deduct $480 for anyone under 18 or a student who is not one of the applicants. Other deductions may be available. No need to memorize deductions. Use the calculator at http://eligibility.sc.egov.usda.gov Click ‘single family’ under “Income Eligibility”
Example: Clay County 4-person family (2 adults, 2 children) has a gross income of $88,250. Child care for the two children age 12 or less is $10,940 annually. Is the threshold income at or below the limit? YES. $88,250 less
10,940 child care less $480 for each child = $76,350.
COUNTIES
1- 4 person household
5 – 8 person household
All FL & VI counties EXCEPT those listed below:
$74,050
$97,750
Clay, Duval, Nassau, St Johns
$76,350
$100,800
Collier
$83,150
$109,750
Manatee and Sarasota
$75,200
$99,250
Okaloosa
$76,650
$102,500
Palm Beach
$87,550
$115,550
NOT ELIGIBLE are Broward, Pinellas and Monroe
Add 8% of 1-4 person limit for each person in excess of 8 persons.
Other eligibility criteria:
• U.S. citizen or permanent resident or qualified alien.
• Financed dwelling must be primary residence.
• Property must be residential.
Property requirements:
• New or proposed home construction: Meet the state code.
Use State certified or FHA appraiser.
• Existing homes (over 12 mo. Old or previously occupied): Meet current FHA standard
for existing property. FHA appraisers can be found on the FHA web site:
INCREASE YOUR BUSINESS! USE THIS PRODUCT!
https://entp.hud.gov/idapp/html/apprlook.cfm They complete the URAR and note items needing repair, if any, and certify that the home meets FHA minimum requirement.
• Repairs and closing costs may be wrapped into the loan.
Manufactured home: New manufactured homes purchased from an Agency approved dealer may be financed. See RD for restrictions. Existing units (over 12 mo old or previously occupied) cannot be financed.
Modular home: No restriction
Condo and town home: Must meet the requirements of Fannie Mae, Freddie Mac, VA, or FHA.
Flood Zone:
• Existing dwellings located in a special flood hazard area must have federal flood insurance coverage.
• New construction* in the 100-yr BFE is not permitted unless: infill lot with city water/sewer or a Letter of Map Revision/Amendment (LOMR/LOMA) is issued by FEMA prior to requesting the guarantee on the loan.
*New construction has a CO issued within past 12 months or is proposed construction.
Challenges:
• No co-signors residing outside of the household.
• In-ground swimming pools. The loan, not including RD fee, is limited to the appraised value WITHOUT the pool. The FHA appraiser must justify value ‘as is’ AND a value as if the property had no pool. The value of the pool must be established and justified.
Additional information at: www.rurdev.usda.gov/fl/guarrhs.htm
Find a Rural Development office: http://www.rurdev.usda.gov/recd_map.html
THINK “RD” FIRST!
100% Guaranteed financing offers your clients the most affordable payment, less out of pocket cost, and a competitive fixed interest rate.
Agency staff is available to assist you with seminars for your staff or customers.

http://www.rurdev.usda.gov/recd_map.html

COUNTY
LOCATION
PHONE NUMBER
EXT
COUNTY
LOCATION
PHONE NUMBER
EXT
Alachua
Ocala
(352)732-7534
4
Leon
Marianna
(850)526-2610
4
Baker
Lake City
(386)719-5590
7
Levy
Ocala
(352)732-7534
4
Bay
Marianna
(850)526-2610
4
Liberty
Marianna
(850)526-2610
4
Bradford
Lake City
(386)719-5590
7
Madison
Lake City
(386)719-5590
7
Brevard
Davenport
(863)420-4833
7
Manatee
N. Fort Myers
(239)997-7331
4
Broward
NOT ELIGIBLE
Marion
Ocala
(352)732-7534
4
Calhoun
Marianna
(850)526-2610
4
Martin
N. Fort Myers
(239)997-7331
4
Charlotte
N. Fort Myers
(239)997-7331
4
Monroe
NOT ELIGIBILE
Citrus
Ocala
(352)732-7534
4
Nassau
Lake City
(386)719-5590
7
Clay
Lake City
(386)719-5590
7
Okaloosa
Crestview
(850)682-2416
4
Collier
N. Fort Myers
(239)997-7331
4
Okeechobee
N. Fort Myers
(239)997-7331
4
Columbia
Lake City
(386)719-5590
7
Orange
Davenport
(863)420-4833
7
Dade
N. Fort Myers
(239)997-7331
4
Osceola
Davenport
(863)420-4833
7
DeSoto
N. Fort Myers
(239)997-7331
4
Palm Beach
N. Fort Myers
(239)997-7331
4
Dixie
Ocala
(352)732-7534
4
Pasco
Davenport
(863)420-4833
7
Duval
Lake City
(386)719-5590
7
Pinellas
NOT ELIGIBLE
Escambia
Crestview
(850)682-2416
4
Polk
Davenport
(863)420-4833
7
Flagler
Ocala
(352)732-7534
4
Putnam
Ocala
(352)732-7534
4
Franklin
Marianna
(850)526-2610
4
Santa Rosa
Crestview
(850)682-2416
4
Gadsden
Marianna
(850)526-2610
4
Sarasota
N. Fort Myers
(239)997-7331
4
Gilchrist
Ocala
(352)732-7534
4
Seminole
Ocala
(352)732-7534
4
Glades
N. Fort Myers
(239)997-7331
4
St. Croix
St. Croix, VI
(340)773-9146
4
Gulf
Marianna
(850) 526-2610
4
Hamilton
Lake City
(386)719-5590
7
St. Thomas
St. Croix, VI
(340)773-9146
4
Hardee
N. Fort Myers
(239)997-7331
4
St. Johns
Lake City
(386)719-5590
7
Hendry
N. Fort Myers
(239)997-7331
4
St. Johns (VI)
St. Croix, VI
(340)773-9146
4
Hernando
Davenport
(863)420-4833
7
St. Lucie
N. Fort Myers
(239)997-7331
4
Highlands
N. Fort Myers
(239)997-7331
4
Sumter
Ocala
(352)732-7534
4
Hillsborough
Davenport
(863)420-4833
7
Suwannee
Lake City
(386)719-5590
7
Holmes
Crestview
(850)682-2416
4
Taylor
Lake City
(386)719-5590
7
Indian River
N. Fort Myers
(239)997-7331
4
Union
Lake City
(386)719-5590
7
Jackson
Marianna
(850)526-2610
4
Volusia
Ocala
(352)732-7534
4
Jefferson
Marianna
(850)526-2610
4
Wakulla
Marianna
(850)526-2610
4
Lafayette
Lake City
(386)719-5590
7
Walton
Crestview
(850)682-2416
4
Lake
Ocala
(352)732-7534
4
Washington
Marianna
(850)526-2610
4
Lee
N. Fort Myers
(239) 997-7331
4
GO TO: www.rurdev.usda.gov/fl
Home page of Rural Development Florida & Virgin Islands www.rurdev.usda.gov/fl/guarrhs.htm
Detailed information on the guaranteed residential loan program http://eligibility.sc.egov.usda.gov/
Interactive mapping system and income calculator. Instantly discover if property is eligible. www.rurdev.usda.gov
National home page of Rural Development www.rurdev.usda.gov/regs
National Regulations and directives. July 5, 2011
To subscribe to our emailed notices/updates or other available lists or to unsubscribe an old email address and subscribe a new email address, go to http://www.rdlist.sc.egov.usda.gov
Enter your email address and click on the appropriate e-mail list(s) to which you wish to subscribe. Then click on the “Subscribe” button.
Be sure to click the box for “SFH Florida” (near the bottom).
Also, for more information regarding Florida/Virgin Islands Guaranteed Loans please visit our website at http://www.rurdev.usda.gov/fl/guarrhs.htm
THANK YOU FOR PARTICIPATING IN THE RURAL DEVELOPMENT, USDA, GUARANTEED RESIDENTIAL LENDING PROGRAM.