Weekly Mortgage Memo

Today’s Topic: Rural Development

There is a lot of love in Washington for rural activities so it’s no wonder that the US Department of Agriculture has a home loan program.  These loans are only available in certain locations.  Attached is a map with a snapshot of the metro.  A quick rule of thumb is that you can’t be in a decent sized city.  So, for example, if you’re in Oklahoma County but outside any city limits in an unincorporated area you might be in a RD area.  If you’re driving West on Covell and you cross Penn you’ve just left Edmond and you’re in an RD area. If you’re driving North on MacArthur and you cross 164th you just left Oklahoma City and you’re in an RD area.  All of Logan and McClain County is RD.  To know for sure here is the website link where you can key in an address and, of course, you’re always welcome to call, text or email me and I’ll check for you.

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

 Key points of the program include:

• Finance 100% of the appraised value (yes you read that right – appraised value)

• Income limits

o   1-4 family 74,750

o   4-8 family 98,650

• Ratios

o   31% Housing ratio (% of house payment to gross monthly income)

o   43% Total debt to income ratio.

• No house size maximum.  Although the 31% housing ratio limits you to about $270,000 (1-4 family) and $355,000 (4-8 family)

• Fees

o   2% Funding Fee (Financed into the loan)

o   .5% Annual Fee – paid monthly for the life of the loan.

• 6% seller concession

*Info provided by Tom Davies, Sr. VP Mortgage

Taylor Ortiz
Mortgage Loan Officer for Spirit Bank

Edmond Mortgage

2575 S Kelley Pointe Parkway Suite #180,

Edmond, OK 73013
Office phone: 405-513-7805
Mobile phone: 405-509-1064
NMLS# 449866

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