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Programs Offered USDA, FHA, VA and Conventional Training
Programs Offered
USDA, FHA, VA and Conventional Training
Use for:
Questions about program guidelines
Review a 1003 & Credit to see if the borrower(s) will qualify
Specific scenario questions
USDA Min score is 620
IF the home appraises for more than the contract price, closing costs can be included in the loan amount up to the appraised value
100% financing of the contract price
Rate/Term refinancing is available – USDA to USDA refi only
Scores of 620 – 640 will be manual underwrites. 640 and above with GUS approval will follow the AUS results. It is possible to get a refer with a score above 640 and a manual UW requirement.
Manual UW will limit DTI to 29/41. GUS approvals are only limited by the AUS system.
USDA eligibility for Income and Property should be checked at the Eligibility Website: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
30 Year FRM is the only product available
Rates have a maximum allowed, as set by USDA….this will show on the rate sheet
USDA Guarantee Fee is 2.0% and the monthly MI factor is .50
Additional Guidelines can be found at www.fsbtpo.com under Forms & Tools – Product Matrix's
FHA Minimum credit score of 620
DO or LP AUS accepted
Manual Underwriting available with management approval
Manual DTI limited to 32/43
FHA guidelines are followed with few overlays, if any
Streamline with no appraisal or with appraisal are allowed – FHA to FHA only
Any loan can be refinanced into an FHA loan
Cash out refi to 85% - no adjustments to rate
Combining a 1st and 2nd is not considered cash out as long as the 2nd is 12 months old
97.75% LTV max for rate/term refi
96.5% LTV max for purchase
UFMIP (up front mortgage insurance premium) is 1.75% (can be financed)
Student loans that are deferred for 12 months through the closing date can be excluded from the DTI
Monthly MI is 1.35% for a 30 year loan over 90% LTV. For addition MI coverage based on the term and LTV, please see our FHA Matrix at www.fsbtpo.com
FHA Additional Programs
FHA offers many options and features that will assist borrowers in getting approved for a loan. The following screen outlines a few of these options. When a question arises about the possibilities of a scenario getting completed, email our Scenario Team with your questions. [email protected]
Additional offerings of FHA: FHA offers many options within the program. Flanagan will complete the following:
• 203b (standard FHA Loan)
• HUD Reo $100 Down Payment
• Grants & DPA’s approved by HUD
• Kiddie Condo Program
• Non Occupying Co-Borrowers
• Manufactured Homes
• Arm’s Length Transactions
• Multi Unit Properties (no adjustment to duplex)
• Condo’s
This is just a sampling of the possibilities FHA allows for. Feel free to check with your AE Team to learn about FHA further.
VA Minimum Credit Score of 620
100% Financing – Rate/Term and Purchase
Funding Fee is based on use and can be financed – see next slide for chart
No monthly MI
Must meet residual income requirements
Origination fee must be collected on back end of loan due to limitations of fees to collect set by the VA
Student loans that are deferred 12 months through the date of closing can be excluded from the DTI
LP or DO AUS findings acceptable
Manual underwriting available with management approval
Max DTI 41% for Manual UW – Max 50% with approve/eligible findings
Termite Inspection typically required – Veteran cannot be charged for this service
If property has a well – water test will always be required
For further details on this program, visit www.fsbtpo.com to view our matrix
VA Funding Fee Table – Loan Fee Structure for VA – Guaranteed Loans
Veteran Reservist/National Guard
First Time Use 2.15% 1.50% 1.25%
2.40% 1.75% 1.5%
Down Payment Less than 5% (1) *11/22/11 through 9/30/17 At least 5% but less than 10% *11/22/11 through 9/30/17 10% or more *11/22/11 through 9/30/17 Second and Subsequent Use
3.30% 1.50% 1.25%
3.30% 1.75% 1.50%
Down Payment Less than 5% (1) *11/22/11 through 9/30/17 At least 5% but less than 10% *11/22/11 through 9/30/17 10% or more *11/22/11 through 9/30/17 Refinancing Loans
.50% .50% Interest Rate Reduction (IRRRL)
Other .50% 0.00%
.50% 0.00%
Assumptions Service Connected disabled Veterans
VA Funding Fee ChartFor disabled veterans, the FF is typically waived. This must be confirmed through the VA Regional Centers or the Certificate of Eligibility. With confirmation, the FF can be excluded from the loan amount.
VA Residual Income ChartIf residual income is not met, the file will be denied. Use the charts to find out your areas Residual Income requirements.
Conventional Min score is 640
95% LTV max for Purchase & Rate/Term Refinance
85% LTV for cash out – O/O property
Second Home and Investment purchase, rate/term and cash out available
Standard Monthly PMI, LPMI, Single Financed MI and Split Premium MI are available
FSB will allow up to 10 financed properties by a borrower, but will only finance 4 of them per borrower.
1 – 4 units, modular, manufactured homes, condos are all eligible
Florida condos are not eligible at this time
For detailed program guidelines, please visit www.fsbtpo.com to view our matrix
Flanagan State Bank is dedicated to your success. Use us as your best resource. Feel free to use our Scenario email ([email protected]) and your Account Executive Team. We are always available to answer questions!
