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PRINCETON WHOLESALE PRODUCTS

USDA LOANS

A Zero Down Payment Mortgage Option for Rural Borrowers

USDA LOANS
PRINCETON WHOLESALE OFFERS AN EFFORTLESS USDA OPTION FOR QUALIFYING RURAL BORROWERS

Some borrowers prefer rural scenery over city sidewalks, and that's why the USDA loan product from Princeton Wholesale is a great option for those who qualify.

Many borrowers can take advantage of benefits like: No down payment, competitive rates, lower monthly mortgage insurance, flexible credit guidelines, and many other favorable loan terms.

Combine these benefits with Princeton's industry-leading service, and it will be the effortless way to go!

Talk to one of our Underwriters to see what scenario works best for your borrower.

USDA RESOURCES

MORTGAGEE CLAUSE

Princeton Mortgage Corporation, ISAOA/ATIMA
439 Grand Avenue
Ewing, NJ 08628
*Please use for both Title and HOI*

ABOUT USDA

Terms and Fees

  • Maximum Loan Amount: 100% Appraised Value PLUS Upfront Guarantee Fee (101% financing)

  • Loan Fees: 1) Upfront Guarantee Fee = 1.00%, 2) Technology Fee = $25; Annual Fee = 0.35% UPB​

  • Interest Rate: 30-year fixed rate term negotiated between the applicant and lender. No cap on rate.

  • Seller/Interested Party Contributions: Allowable up to 6% of sales price. No limit on gift funds.

  • Types: Purchase, Build, Refinance, Streamline Refinance

  • Participating Lenders earn Community Reinvestment Act (CRA) credit
     

Applicant

  • Occupancy: Must agree to personally occupy home within 60 days of loan closing

  • Citizenship: Must be a U.S. citizen, U.S. non-citizen national, or qualified alien

  • Assets: Must be unable to obtain conventional financing with no PMI and a 30-year fixed rate term

  • Suspension or Debarment: Lender will verify eligibility through the System for Award Management (sam.gov)S

  • Not limited to First Time Home Buyers

 

Income

  • Annual Income: Income of ALL adult household members must be below the Moderate limit [115% of the county median household income (MHI)].

  • Adjusted Annual Income: Eligible deductions—$480 per eligible dependent, $400 elderly household; eligible childcare, elderly medical, and disability expenses

  • Repayment Income: Stable and dependable income of the applicants who will sign the note; Co-signers not permitted; Non-taxed repayment income may be grossed-up by 25%

  • Repayment Ability (Ratios): 29% PITI and 41% TD (flexible with compensating factors)

    • ◊ GUS “Accept” = no waiver required; GUS “Refer” or “Refer with Caution” = waiver required

 

Credit

  • Credit Score: 620

  • GUS “Accept”: Credit score validation not required; Streamlined documentation submission

  • GUS “Refer” or “Refer with Caution”: Credit score validation required (at least 1 applicant must have 2 tradelines with a 12-month history); Full documentation submission

  • Non-Traditional Credit: Acceptable for applicants without a usable score; 2 trade references when 1 is a verification of rent or mortgage, 3 trade references if no verification of rent or mortgage

Property

  • Eligible Area: Must be located within a rural area

  • Property Types: Single Family Existing, New Construction, Condos, PUDs, Modular, and some Manufactured

  • Site Size: No acreage limit. Site size must be typical for the area and have no land or buildings principally utilized for income producing purposes

  • Inspection: Existing homes must meet HUD Handbook 4000.1 requirements; Safe water test required for private wells; Well and/or septic inspection if required by appraiser, inspector, or lender