DOCSLIB.ORG

Single Family Home Loan Guarantees

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Single Family Home Loan Guarantees Together, America Prospers Single Family Home Loan Guarantees What does this Who may apply for this program? What are applicant qualifications? Applicants must: • Income. Non-Self-Employed: program do? One-year history required. • Have a household income that does not exceed 115% of median Self-Employed and Seasonal: This no downpayment, household income.* Two-year history required. 100% financing program assists • Agree to occupy the dwelling as • Assets. No downpayment or approved lenders in providing their primary residence. reserves required. low- and moderate-income • Be a U.S. citizen, U.S. non-citizen • Credit. Must demonstrate a households the opportunity to national, or Qualified Alien. willingness and ability to repay debts. No set score requirement. • Be unable to obtain conventional own adequate, modest, decent, Alternative credit allowable for those financing with no private mortgage safe and sanitary dwellings as with no traditional credit. insurance (PMI). their primary residence in eligible • Monthly housing payment. Total • Not be suspended or debarred from payment (principal, interest, taxes, rural areas. participation in federal programs. insurance, HOA dues, RD annual fee) typically should not exceed Eligible applicants may purchase What properties are eligible? 29% of gross monthly income. existing homes (which may • Must be located within an eligible • All monthly debt payments. All rural area.* include costs to rehabilitate, payments included on credit report, • Must be a single-family dwelling including proposed new mortgage improve or relocate the dwelling) (may include detached, attached, payment, typically should not exceed or build new. PUD, condo, modular, and 41% of gross monthly income. manufactured). Student loan payments. Fixed USDA provides a loan note • Must meet HUD 4000.1 payment: use actual payment or 1% of loan balance. guarantee to approved lenders, minimum standards. encouraging participation by • No set maximum purchase Non-fixed payment (IBR, graduated, price (based solely on applicant adjusted, etc.) plans: Use 0.5% of minimizing their risk. repayment ability). loan balance. • No set acreage limits. Must be • Seller (or interested party) This program is NOT restricted common for the area. contributions. Not to exceed 6% of to first-time homebuyers. sales price. • No seasoning requirements (“flipped” properties allowed). • Gift funds. No limit. Single Family Home Loan Guarantees What types of loan products What governs this program? What if I don’t qualify? are available? • 7 CFR part 3555 - This part sets USDA also offers a direct 502 • Purchase existing or build new with the forth policies for the Single Family purchase program which provides Single-Close construction program. Housing Guaranteed Loan Program for subsidized payments for those (SFHGLP) administered by applicants from households with income • Current USDA Rural Development USDA Rural Development. It below 80% of MHI and who cannot loan holders can take advantage of addresses the requirements of qualify for a guaranteed loan. Interested lower rates by utilizing one of Rural Section 502(h) of the Housing Act applicants should contact their state Development’s refinance options. of 1949, as amended, and includes USDA Rural Development office. • Interest rate is negotiated between policies regarding originating, the applicant and the lender. Rate servicing, holding, and liquidating Tools and Resources: must be a 30-year fixed rate. SFHGLP loans. To determine Property and Income • Program lending is extended to 100% • HB-1-3555 - SFH Guaranteed Loan eligibility: https://eligibility.sc.egov. of appraised value, not purchase Program Technical Handbook. This usda.gov/eligibility/welcomeAction.do price, so borrowers may potentially handbook provides Agency staff include closing costs and home and lenders participating in the repair expenses into USDA financing. Single Family Housing Guaranteed Loan Program with the tools needed • Funds may be used for closing to originate, underwrite, and costs, reasonable and customary service guaranteed loans efficiently expenses associated with the and effectively. purchase transaction, connection fees for utilities, tax and insurance escrows, essential household Why does the USDA Rural equipment, site preparation. Development do this? This program helps lenders work How do we get started? with low- and moderate- income families living in rural areas to Interested applicants can apply for make homeownership a reality. a Section 502 Guaranteed Loan Providing affordable homeownership through any approved USDA Rural opportunities promotes prosperity, Development lender. We encourage which in turn creates thriving you to contact your preferred lender communities and improves the quality and ask if they are an approved lender of life in rural areas. with USDA Rural Development. Who can answer questions? Applicants with questions should contact an approved lender. We encourage you to contact your preferred lender and ask if they are an approved USDA Rural NOTE: Because citations and other information may be subject to change, Development Guaranteed lender. please always consult the program instructions listed in the section above, titled “What governs this program?” You will find additional forms, resources, and program information at: rd.usda.gov. Go to the “Programs and Services” tab and then select “Single Family Housing Programs.” USDA is an equal opportunity provider, employer, and lender. August 2020.
Load more

Recommended publications
  • Predatory Lending Divestment Note for Advantage
    Predatory Lending Divestment Note for Advantage SRI Advantage Capital Strategies identifies industries that have detrimental environmental, social, and economic effects and takes action to mitigate risk both through screening and advocating for change. The Predatory Lending Industry Explained Predatory lending refers to payday lenders, pawnbrokers, rent-to-own stores, subprime mortgage and auto loan providers, and cheque cashers.1 These types of loans can be acquired by almost anyone regardless of financial background, but they come with exorbitantly high interest rates and other fees. Payday loans are not provided by financial institutions such as banks, which are regulated by the federal government, but rather by providers who are regulated provincially. Many provinces do not have restrictions on payday loans, although recently there have been some provincial efforts to better control the industry. Advantage Canada SRI does not invest in companies engaged in predatory lending because of the negative social effects of this industry. There are currently no predatory lending companies on the S&P 500. The Economic Rationale for Divestment Predatory lenders are subject to provincial regulation, but they are not currently subject to the same federal regulations as financial institutions such as banks. The operation of predatory lenders is a contentious issue, as they often provide necessary financial services to those who could otherwise not access them, but charge extremely high interest rates while doing so. Recently there has been a push from certain organizations for provinces to impose stricter regulations on payday loan providers. For example, Alberta recently implemented strict regulations on the interest rates predatory lenders can charge, a change that has severely crippled the industry in that province.2 The possibility of further provincial or federal regulation on predatory lenders represents an economic risk for these companies and therefore for investors.
    [Show full text]
  • Divest Invest February 2018 (Compressed)
    Divest from the past, invest in the future. www.divestinvest.org Disclaimer: Divest Invest assumes no legal or financial responsibility for the practices, products, or services of any businesses listed. The funds listed are examples, not recommendations. Please read all materials carefully prior to investing. This presentation will cover: • What the Paris Agreement means for investors 3 • What is Divest Invest 7 • Divest Invest is the prudent financial choice 12 • Divest Invest fulfills fiduciary duty 21 • Fossil free investing: from niche to mainstream 27 • Divest Invest options for every asset class 31 2 What the Paris Agreement means for investors WHAT THE PARIS AGREEMENT MEANS FOR INVESTORS Under the Paris Agreement, world governments commit to keep global temperature rise to well below 2°C and to pursue efforts to limit it to 1.5°C. To achieve this, up to 80% of fossil fuel reserves can’t be burned. They are stranded assets whose economic value won’t be realized. Investors are sitting on a carbon bubble. Climate risks, including stranded assets, pose a material threat to investor portfolios now, say a growing chorus of financial regulators, asset managers, analysts, policymakers and … oil companies: 4 WHAT THE PARIS AGREEMENT MEANS FOR INVESTORS The Paris Agreement Mark Carney Warns Investors Face signals to markets that ‘Huge’ Climate Change Losses (9/29/15) the global clean energy transition is underway and accelerating. Shell CEO Ben Van Beurden Has Seen Prudent investors are The Future—And It’s Several Shades heeding the call.
    [Show full text]
  • USDA Single Family Housing Guaranteed Loan Program
    USDA Single Family Housing Guaranteed Loan Program No down payment loans for rural borrowers with incomes below 115 percent of area median income as defined by USDA BACKGROUND AND PURPOSE BORROWER CRITERIA The U.S. Department of Agriculture’s (USDA) Income limits: This program is limited to borrowers Single Family Housing Guaranteed Loan Program with incomes up to 115 percent of AMI (as defined by (Guaranteed Loan Program) is designed to serve eli- USDA). Approximately 30 percent of Guaranteed Loans gible rural residents with incomes below 115 percent are made to families with incomes below 80 percent of of area median income or AMI (see USDA definition in AMI. An applicant must have dependable income that overview) who are unable to obtain adequate hous- is adequate to support the mortgage. ing through conventional financing. Guaranteed Loans Credit: Borrowers must have reasonable credit his- are originated, underwritten, and closed by a USDA tories and an income that is dependable enough to approved private sector or commercial lender. The support the loans but be unable to obtain reasonable Rural Housing Service (RHS) guarantees the loan at credit from another source. 100 percent of the loss for the first 35 percent of the original loan and 85 percent of the loss on the remain- First-time homebuyers: If funding levels are limited ing 65 percent. The program is entirely supported by near the end of a fiscal year, applications are prioritized the upfront and annual guarantee fees collected at the to accommodate first-time homebuyers. time of loan origination. Occupancy and ownership of other properties: The dwelling purchased with a Guaranteed Loan must be PROGRAM NAME Single Family Housing Guaranteed Loan Program AGENCY U.S.
    [Show full text]
  • How to Find the Best Credit Card for You
    How to find the best credit card for you Why should you shop around? Comparing offers before applying for a credit card helps you find the right card for your needs, and helps make sure you’re not paying higher fees or interest rates than you have to. Consider two credit cards: One carries an 18 percent interest rate, the other 15 percent. If you owed $3,000 on each and could only afford to pay $100 per month, it would cost more and take longer 1. Decide how you plan to pay off the higher-rate card. to use the card The table below shows examples of what it might You may plan to pay off your take to pay off a $3,000 credit card balance, paying balance every month to avoid $100 per month, at two different interest rates. interest charges. But the reality is, many credit card holders don’t. If you already have a credit card, let APR Interest Months history be your guide. If you have carried balances in the past, or think 18% = $1,015 41 you are likely to do so, consider 15% = $783 38 credit cards that have the lowest interest rates. These cards typically do not offer rewards and do not The higher-rate card would cost you an extra charge an annual fee. $232. If you pay only the minimum payment every month, it would cost you even more. If you have consistently paid off your balance every month, then you So, not shopping around could be more expensive may want to focus more on fees and than you think.
    [Show full text]
  • Estimated Loan Debt Letter Information
    ESTIMATED LOAN DEBT LETTER INFORMATION UIW sends es�mated loan debt amounts every year to students that borrow. The Es�mated Loan Debt Leter can be used as a tool in understanding your current loan balances, ensuring you will have manageable repayment, and help you plan for any future borrowing. Knowing what you owe will help you make wise borrowing decisions. KNOW WHAT (AND WHO) YOU OWE! • Direct Federal Student Loans Studentaid.gov can be used to view your direct loan and Pell grant balances at any �me, as well as retrieve your student loan data file. Please note, you will need your FSA ID creden�als to log in. • State Loans (THECB B-on-Time and College Access Loans) Access www.hhloans.com to view your balances and payment informa�on for the B-on-Time Loan, or the College Access Loan. The B-on-Time Loan must be repaid if you do not qualify for loan forgiveness. These loans are owned and managed by the Texas Higher Educa�on Coordina�ng Board (THECB). THECB can be reached at www.hhloans.com or 800-242-3062. • Non-federal loans www.Annualcreditreport.com is a free website you can use to obtain a free copy of your credit report from each of the three credit bureaus every 12 months. You will find any private loans you’ve borrowed on your credit report, regardless of who you borrowed them from or what school you borrowed them at. You should review your credit report periodically to ensure your informa�on is correct.
    [Show full text]
  • Ma Divestment 4-1-2021
    BPB 2021-013 BEM 405 1 of 23 MA DIVESTMENT 4-1-2021 DEPARTMENT POLICY Medicaid (MA) ONLY Divestment results in a penalty period in MA, not ineligibility. Divestment policy does not apply to Qualified Disabled Working Individuals (QDWI); see Bridges Eligibility Manual (BEM) 169. Divestment is a type of transfer of a resource and not an amount of resources transferred. Divestment means the transfer of a resource (see resource defined in this item and in glossary) by a client or his spouse that are all the following: • Is within a specified time; see look back period in this item. • Is a transfer for less than fair market value; see definition in glossary. • Is not listed under transfers that are not divestment in this item. Note: See annuity not actuarially sound and joint owners and transfers in this item and BEM 401 about special transactions considered transfers for less than fair market value. During the penalty period, MA will not pay the client’s cost for: • Long Term Care (LTC) services. • Home and community-based waiver services. • Home help. • Home health. MA will pay for other MA-covered services. Do not apply a divestment penalty period when it creates an undue hardship; see undue hardship in this item. RESOURCE DEFINED Resource means all the client’s and spouse's assets and income. It includes all assets and all income, even countable and/or excluded assets, the individual or spouse receive. It also includes all assets and income that the individual (or spouse) were BRIDGES ELIGIBILITY MANUAL STATE OF MICHIGAN DEPARTMENT OF HEALTH & HUMAN SERVICES BPB 2021-013 BEM 405 2 of 23 MA DIVESTMENT 4-1-2021 entitled to but did not receive because of action by one of the following: • The client or spouse.
    [Show full text]
  • Money Talks, Banks Are Talking: Dakota Access Pipeline Finance Aftermath
    UCLA The Indigenous Peoples’ Journal of Law, Culture & Resistance Title Money Talks, Banks are Talking: Dakota Access Pipeline Finance Aftermath Permalink https://escholarship.org/uc/item/1043285c Journal The Indigenous Peoples’ Journal of Law, Culture & Resistance, 6(1) ISSN 2575-4270 Authors Cook, Michelle MacMillan, Hugh Publication Date 2020 DOI 10.5070/P661051237 eScholarship.org Powered by the California Digital Library University of California MONEY TALKS, BANKS ARE TALKING: Dakota Access Pipeline Finance Aftermath Michelle Cook* and Hugh MacMillan+ Abstract This Article provides a Dakota Access Pipeline (DAPL) finance and divestment campaign retrospective. The Article explains: 1) how DAPL was financed, highlighting the dynamic in which banks take fees for the privilege of financing and refinancing pipeline debt; and 2) how joint venture ownership structures and corporate finance arrangements buffered against efforts to hold DAPL banks accountable. At the same time, many of the same banks finance gun industry and prison industry growth, alongside increased police militarization. Although, intersec- tional visibility of these financial ties is a start, victims of the financial industry lack enforceable corporate accountability mechanisms for seek- ing redress. DAPL banks managed to deflect divestment pressure and avoid meaningful remedial actions. These observations point to the need for systemic changes in corporate accountability mechanisms but also to reclaim and reimagine a world outside of capital, of future self-de- termined
    [Show full text]
  • Banks and Banking Regulation: the United States Has a System Of
    Banks and Banking Regulation: The United States has a system of fractional reserve banking. I'll explain exactly what that means over the next hour, but it is important to remember that the US has always had a fractional reserve system of banking. No matter how the system was structured, and no matter which level of government regulated banks, it is always a fractional reserve system. The goals of banking regulation are tied to the problems any fractional reserve system faces. This was true in the 1830s, in the 1930s, and it is still true today in 2006. The starting point in understanding the monetary system is to understand that most money takes the form of "liabilities of the banks." This sounds odd, but it isn't. When you put money into your checking account, you have a deposit. The deposit is an asset to you and a "liability" to the bank. It is an asset to you because you can convert it into goods and services "on demand." In the early 19th century most banks issued bank notes. These were literally paper money that was the liability of the bank. Note holders had the right to demand that the bank convert the bank note into "specie" (typically gold or silver coins). Changes in the banking system introduced during the Civil War "National Banking Act(s)" made it unprofitable for most banks to issue notes. So they dramatically expanded the creation of deposit liabilities through a rapid expansion of checking accounts. Today, most of the money in the United States is held in the form of bank deposits.
    [Show full text]
  • Public Finance Handbook for Texas Counties
    PUBLIC FINANCE HANDBOOK FOR TEXAS COUNTIES PREPARED BY THOMAS M. POLLAN BICKERSTAFF HEATH DELGADO ACOSTA LLP 3711 S. MoPac Expressway Building One, Suite 300 Austin, Texas 78746 (512) 472‐8021 (512) 320‐5638 [Fax] FOR THE TEXAS ASSOCIATION OF COUNTIES 1210 SAN ANTONIO AUSTIN, TEXAS 78701 THE HONORABLE CONNIE HICKMAN, ASSOCIATION PRESIDENT ASSOCIATION STAFF MEMBERS SERVING YOU AND YOUR COUNTY’S NEEDS Gene Terry, Executive Director Rex Hall, Assistant Executive Director Karen Gladney, General Counsel David Hodges, Director of Education Nancy Lyter, Finance Director Randy Plyler, Director of Risk Management Services Stan Reid, Chief Information Officer Paul Sugg, Director of Governmental Relations TAC Phone: (512) 478‐8753 TAC Fax: (512)478‐3573 Legal Research Toll Free “Hot Line”: (888) 275‐8224 Or visit us online at: www.county.org Copyright © 2012 by Thomas M. Pollan PAGE i Introduction to the Author Tom Pollan is an Austin attorney in private practice who has served as a willing and able external resource for the Legal Department of the Texas Association of Counties for many years. In fact he provided much of the early organizational guidance for the Association before there was a staff legal department at TAC. The Association will always be in his debt for the counsel he has provided through the years. The user of this publication will easily perceive Pollan’s gift for insightful and practical guidance through a maze of a very technical field of law and practice. We believe that this publication is unique and will become an essential tool for county officials. Thank you, Tom Pollan.
    [Show full text]
  • Interest Rates, Interest Charges, and Fees – Platinum Card Interest Rates and Interest Charges Annual Percentage Rate 14.99% to 22.99%, Based on Your Creditworthiness
    Interest Rates, Interest Charges, and Fees – Platinum Card Interest Rates and Interest Charges Annual Percentage Rate 14.99% to 22.99%, based on your creditworthiness. (APR) for Purchases This APR will vary with the market based on the Prime Rate. APR for Balance Transfers 0.00% Introductory APR for the first fifteen months. After that, your APR will be 14.99% to 22.99%, based on your creditworthiness. This APR will vary with the market based on the Prime Rate. APR for Cash Advances 24.99% This APR will vary with the market based on the Prime Rate. Penalty APR and When it None Applies Paying Interest Your due date is at least 25 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date. Minimum Interest Charge If you are charged interest, the charge will be no less than $1.00. For Credit Card Tips from To learn more about factors to consider when applying for or using a credit card, the Consumer Financial visit the website of the Consumer Financial Protection Bureau at Protection Bureau http://www.consumerfinance.gov/learnmore/. Fees Annual Fee None Transaction Fees • Balance Transfer Either $10 or 4% of the amount of each transfer, whichever is greater. • Cash Advance Either $10 or 4% of the amount of each cash advance, whichever is greater. • Foreign Transaction 3% of the U.S. Dollar amount of each such transaction.
    [Show full text]
  • Over 100 Global Financial Institutions Are Exiting Coal, with More to Come Every Two Weeks a Bank, Insurer Or Lender Announces New Restrictions on Coal
    Tim Buckley 1 Director of Energy Finance Studies, Australasia 27 February 2019 Over 100 Global Financial Institutions Are Exiting Coal, With More to Come Every Two Weeks a Bank, Insurer or Lender Announces New Restrictions on Coal Executive Summary Today, over 100 globally significant financial institutions have divested from thermal coal, including 40% of the top 40 global banks and 20 globally significant insurers. Momentum is building. Since January 2018, a bank or insurer announced their divestment from coal mining and/or coal-fired power plants Global capital is fleeing every month, and a financial institution the coal sector. who had previously announced a divestment/exclusion policy tightened This is no passing fad. up their policy to remove loopholes, every two weeks. In total, 34 coal divestment/restriction policy announcements have been made by globally significant financial institutions since the start of 2018. In the first nine weeks of 2019, there have been five new announcements of banks and insurers divesting from coal. Global capital is fleeing the thermal coal sector. This is no passing fad. Since 2013 more than 100 global financial institutions have made increasingly tight divestment/exclusion policies around thermal coal. When the World Bank Group moved to exit coal in 2013, the ball started rolling. Following, Axa and Allianz become the first global insurers to restrict coal insurance and investment respectively in 2015, and their policies have subsequently been materially enhanced. Next, some 35 export credit agencies (ECA) released a joint statement agreeing to new rules restricting coal power lending. In the same year, the China-led Asian Infrastructure Investment Bank trumpeted its global green credentials with the Chairman confirming the Bank was in practice ruling out finance for coal-fired power plants.
    [Show full text]
  • New Beneficial Ownership Rules in Full Effect: What to Expect and How to Manage the New Procedures
    February 2019 New Beneficial Ownership Rules in Full Effect: What to Expect and How to Manage the New Procedures Executive Summary The Financial Crimes Enforcement Network (FinCEN) issued a final rule on May 11, 2016, (effective for covered financial institutions on May 11, 2018) regarding customer due diligence requirements for covered financial institutions. As a result, a company entering into new lending, treasury management, hedging or other relationships or opening new bank accounts with covered financial institutions must now generally disclose additional information related to individuals who (i) control the company and (ii) own a certain amount (directly or indirectly) of the company. These requirements are in addition to the “know your customer” (aka KYC) deliverables mandated by the USA PATRIOT Act (the Patriot Act). Practical takeaways about the Beneficial Ownership Rule discussed in this article include: • Your Financing and Any Amendments to Your Existing Credit Facility Will Likely Be Affected. Even if you already have existing bank accounts and are obtaining new financing with an institution with whom you have an established relationship, expect renewed legal entity due diligence, more questions, new forms to complete and additional KYC hurdles. • Communicate Upfront. Start the conversation early with bank lenders to determine how the bank’s compliance department is implementing the Beneficial Ownership Rule and to learn what ownership threshold (i.e., 10 percent, 25 percent) the bank is requiring. • Allow Time to Complete Forms. Allocate additional time and resources to completing the administrative tasks related to the beneficial ownership forms. • Carefully Handle Information. Handle with care the communication of individuals’ Social Security numbers and other personally identifiable information.
    [Show full text]