Target:

Low/moderate income households that can afford the monthly mortgage payments; however, do not have adequate funds available for down payment or closing costs.  Available to eligible applicants in rural areas

Eligibility:

1)  Do not currently own an adequate dwelling in the local commuting area

2)  Will be the owner occupant

3)  Household income must be within the income limits (see limits below)

4)  Must have acceptable credit history

5)  Must have adequate and dependable income sufficient to meet all obligations

6)  Must be a citizen or legally admitted to the United States for permanent residence.

Loan Purpose:

Assist low and moderate income applicants through the guarantee of loans made by conventional lenders for homes in eligible rural areas.  Closing costs may be included in the acquisition of modest single family homes, new or existing financed, if the appraisal supports it.

Eligible Area: 

The following counties in New York State contains NO ineligible property areas:  Allegany, Cattaraugus, Chenango, Columbia, Delaware, Essex, Franklin, Genesee, Hamilton, Herkimer, Lewis, Livingston, Orleans, Otsego, Putnam, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Washington, Wayne, Wyoming, and Yates.

Minimum Adequate Site:

The value of the site must not exceed 30 percent of the total value of the property.

Prohibited Uses:

1)  Purchase of existing manufactured housing (mobile homes).  2)  Purchase income producing properties.

Inspections:

1) Private water.  2) Inspection certifications completed by lender's appraiser. 3) Dwelling must meet current HUD Handbook 4150.2 and 4905.1 Standards (note:  thermal inspections no longer required)

Loan Terms:

30 years (360 monthly payments)

Interest:

Fixed - the lender's maximum interest rate must not exceed the higher of the current VA rate or Fannie Mae's required net yield for 90-day commitments on 30-year fixed-rate mortgages with actual/actual remittance plus 60 basis points.

Loan Amount:

Loan amount can not exceed 102% of the appraised value of the property.  (Note:  appraised value may be exceeded by the amount of guarantee fee financed.)

Loan Mortgage Amount:

None.  Applicant's income and loan repayment ability will dictate the maximum loan amount.  Mortgage insurance no required.

Guarantee Fee:

2% of the Loan Amount

Repayment Ability:

1)  PITI (Principal, Interest, Taxes and Insurance) does not exceed 29% of gross income

2)  TD (Total Debt) does not exceed 41% of gross income  (Note:  ratios above 29/41% can be exceeded with above average credit scores)

For additional information on income and property eligibility, log on to the USDA web site (click here) and follow the links:  Housing & Community Facilities, Income & Property Eligibility and Single Family Housing.  Our agents are standing by to assist you search for your new country home.  We invite  you to participate in our Buyer's Agency Program to find the right match for your family.  E-mail us direct!