|
Regulation |
Rural Development |
FHA |
Resale Time Restriction
Ref: HUD ML 2003-07 & 2005-05 |
No Restriction |
90 days minimum |
|
Upfront MIP/Guarentee fee |
3.5% |
2.25% |
|
Annual MI |
None |
0.55% > 95% LTV, .50% < 95%LTV |
|
Down Payment |
None Required |
3.5% |
|
Loan Amount based on
|
Up To 103.5% 102% of Appraised Value* |
Lower of Sale Price or Appraisal |
|
Seller Contribution Limit |
None |
6% |
|
Loan Limits |
None |
Yes |
|
Income Limits |
Yes |
No |
|
Gifts allowed |
Yes |
Yes |
Consumer Credit (CCCS, etc.) permission
required if borrower in debt program (Manual
Underwrite Only) |
No |
Yes |
|
Non-Purchasing Spouse allowed |
Yes |
Yes **Restrictions apply |
Borrower allowed to borrow closing costs on
unsecured basis |
Yes |
No |
|
Temporary Buydown |
Can qualify at start rate with
compensating factors |
Must qualify at full note rate Ref:
ML 2004-28 |
|
Qualifying Ratios |
29%/41%* Flexibility Allowed |
31%/43%* Flexibility Allowed |
*Note: Because of the method used
by USDA RD to calculate the amount of Guarantee Fee that can be added above
appraised value the actual LTV may be slightly above 102% but for purposes
of discussion we will use the 102%.
Note: Only all or a portion of the
Guarantee Fee up to 2% can exceed the appraised value. Refer to Guarantee
Fee calculation details available in the Rural Development Financing Guide.
FHA loan for MIP purposes assumes > 15 year term. |
