NORTHERN PACIFIC MORTGAGE CONSULTANTS
Guaranteed Rural Housing (GRH) Product Matrix
Financing 102% financing based on appraised value  
Term 30-year fixed        
Refinance Option Yes-Rate reduction only-no cash back-Reduced Guarantee Fee of .5%
  Only existing GRH and Section 502Direct loans are eligible for refinance
Mortgage Insurance No monthly mortgage insurance.  One-time, financed guarantee fee of 2.00%
  regardless of appraised value    
Payment Reserves No payment reserve requirements    
Downpayment No downpayment required-maximum down payment of 15%
First-Time Homebuyer No First-time homebuyer requirement    
Seller Concessions No maximum.  If greater than 6%, comment from the appraiser required
Gifts 100% gifting permitted.  Donor must be disinterested third party.
Income and Ratios
Ratios 29/41- exceptions encouraged with compensation factors exceptions maybe considered with higher FICO'S        
Non-Occupant Co-Borrower Non-occupant co-borrowers not permitted unless approved
Installment Debt Include all installment debt greater than 6 months  
Primary Income Two-year history, no more than 30 days gap-explanation required
Self-Employment Two-years 1040s and P&L      
Alimony/Child Support 12-month history, with proof of 3 years continuance and gross up 125%
Part-time, Over-time & Bonus 12-month history and likeliness of continuance  
Disability Benefits Benefit letter, 3 years continuance and gross up 125%  
SSI Benefits Awards letter and 2 months bank stmts, 3 years continuance and gross up 125%
Salary Increases Salary increases within 60 days of the first payment due date are acceptable
Maximum Income Use Moderate Income Limits (call for more information)
Credit
Credit Score 620 Minimum score 580 with compensating factors and detailed LOE
  use middle score of highest wage earner    
Late Payments 1X30 permitted in last 12 months with explanations-Exceptions may be
  granted if your borrowers have 620 fico  
Bankruptcy/Foreclosure Chapter 7 and 13 must be discharged for 3 years-Foreclosures must be
  completed 3 years ago-Exceptions may be granted if your borrowers have 620 fico
Collections Accounts cannot have been placed in collection status within the last 12-months
  Exceptions may be granted if your borrowers have 620 fico
Judgments Must be paid off for at least 12 months-Exceptions may be granted if your
  borrowers have 620 fico      
Verification of Rent If the applicant's middle credit score is less than 620, then a VOR is required
  for the most recent 12 months      
Previous Housing Payment Not required        
Non-Traditional Credit Acceptable if less than 4 trades on credit is available-no 30day lates permitted
Credit Report RMCR or Tri-Bureau merged (you can pull)    
Homebuyer Education Case by case basis or when required by RD  
Funds For Closing
Closing Costs All closing costs may be financed, except discount points unless borrower is
  below the RD low income limit, then discount points may be financed
Seller Concessions All closing costs and prepaids may be paid by seller concessions
Gifting 100% gifting acceptable from disinterested third party  
Cash Contribution No minimum cash contribution from borrowers  
Unsecured Funds Borrowing of unsecured funds allowed with 660 credit score
Property Requirements
Eligible Areas Property must be located in RD eligible area (call or email for details)
Other Real Estate Owned Borrowers must not own adequate housing at the time of closing
  can close another home concurrently    
Occupancy Primary residence only      
Property Type Single family or RD eligible condo/PUD    
Manufactured Homes Manufactured homes must be new & never titled from RD approved Dealer
Swimming Pools No in-ground swimming pools (above ground permitted with no value)
Repairs 100% of repairs may be financed based on as-improved value.  If work is not complete
  prior to closing an escrow hold back may be established at 150% of repair cost
Well/Septic inspections 100% required        
Termite Report/Clearance Not required if appraised by FHA approved appraiser unless if requested by appraiser
Declining Market no difference in loan to value      
New Construction only requirements are: jobcard, notice of occupancy, and 1year builder warranty
FOR FURTHER INFORMATION CONTACT YOUR RURAL HOUSING EXPERT
Delores Reeves
707-726-0364 phone
707-726-0362 fax
delores@fortunaloans.com