Category Archive : USDA Guidelines & Rules

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Rules on USDA Refinances

       USDA Guidelines & Rules

The USDA recently authorized the issuance of Conditional Commitments for GRH Refinance transactions. The Guarantee Fee will be 1% until further notice. Funding for refinance transactions will be available next week, until then Conditional Commitments will be issued “subject to”. Below you will find some notes regarding USDA refinance transactions. · Limited to refinancing existing Rural Development loans only. ·…… Read More »

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Some USDA Zero Down Loan questions

       USDA Guidelines & Rules / USDA Zero Down Loans

Just fired off an email to an Investor inquiring whether USDA had a problem with him having bought the property 3 1/2 weeks ago and reselling it for profit. Of course, answer is **NO**** !! USDA Zero Down (Rural Housing) loans do not have a “Anti Flipping” rule like FHA had. Even FHA has waived/modified it’s Anti-Flipping policy so it’s…… Read More »

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USDA Zero Down rules on Deferred Student Loans

       USDA Guidelines & Rules / USDA Zero Down Loans

Unlike FHA loans, USDA zero down loans don’t allow student loan payments which are about to be deferred, to be eliminated from the monthly payment obligation. (Remember, with FHA loans, if a borrower’s student loan payments can be deferred for 12 months, they can be kept out of the debt-to-income calculation.) However, if a Borrower’s Student loan pmts are already…… Read More »