USDA HUD Rural 100 Financing Presented by Travis

USDA HUD Rural 100% Financing Presented by Travis Newton Owners: Today’s Mortgage Group 503. 931. 4490 Special thanks to Fidelity National Title

Fiscal Year 2008: Best Ever! § 2008: 675 Loans Funded. § Over $112, 000 invested in rural Oregon! § 2009 YTD: 893 Loans Funded § 2009 projections: Over $262 million and 1, 600 loans! § Along with FHA this program is projected to control nearly 40% of the Purchase Market in Oregon!

When you think Conventional Loans, what comes to mind? § 20% Down – If less than 20%- MI factor over 1. 5%+ § § 740+ credit score No past credit issues/bankruptcy 3 -6 months reserves in the bank Low DTI Ratio’s

USDA is a Conventional Loan § The Guaranteed Rural Housing program delivered through Today’s Mortgage Group is dedicated to the preservation of rural communities. § This program, administered through the US Dept of Agriculture, features 102% financing for qualified moderateincome families looking to purchase single-family homes. For borrowers with little or no cash, it’s ideal since they need no down payment and no funds for closing. § The President just approved funding for over $7 billion dollars in funds for this program for 2009!

USDA? WHERE’S THE BEEF? § What If we told you there was a Loan with NO DOWN Payment that had: § Loan closings within normal time frame. Like regular Conventional loans, Lenders control the closing. § Include closing costs/repairs/renovations in the loan. § No need to increase contract price for seller paid closing costs. § No monthly mortgage insurance (MI). § Maximum loan amount is 100% of the Appraised value plus the one time guarantee fee of 2% (up to 102% LTV) § No cash contribution or cash reserves required from applicant. § Non-traditional credit may substitute for lack of traditional credit history. § No minimum credit score. § Declining markets do not affect LTV

Seller won’t contribute? No problem § This particular mortgage also has a unique feature, that allows closing costs and prepaids to be rolled into the mortgage… without the seller actually “paying” the cost (as long as the house appraises for the increased loan amount)? Think about that! How useful that would be in negotiations of contracts, especially when your buyer is purchasing a Bank owned property? Would that interest you? Could you close more transactions?

YES! This will help you close more transactions! § There IS a Conventional loan that has these great options and it’s the USDA loan. It’s area-specific and income-limited, so it is important that you work with a lender who is very knowledgeable and trained within the USDA loan guidelines! § Travis is your knowledgeable local USDA Expert! § Trained by USDA Loan Specialist Rachel Shultz & Tom Davis from Chase USDA Mortgage in Florida. § Today’s Mortgage Group is one of the only Local Mortgage Bankers offering this product § Our investor is the #1 USDA Lender in the nation. They control a 58% market share. § Underwriting in 48 hours. § Other lenders are 30 -45 days in underwriting.

The Elusive 100% Program § § § § Only True, 100% loan left in our Market No monthly mortgage insurance (PMI) Competitive fixed interest rates (5%) Not Credit Score driven Expanded qualifying ratios No maximum purchase price NOT just for first time buyers $8, 000 FTHB Tax Credit

Innovative Benefits § § § Generous income limits Downpayment assistance accepted Permanent buydowns allowed 2 -1 -0 buydowns allowed No asset limit/No reserve minimum 6% seller concessions

Sample Income Limits § Marion/Polk/Linn Counties – 1 to 4 person family-$73, 600; 5 -8 person family-$97, 150 – Certain deductions of income allowed: Qualifying child care expenses - $480 per child or $400 per senior (62) *Add 8% of 4 Person Limit for each person in excess of 8 for large households ($5, 888) – If in doubt call Travis…I’ll have the answers!

Downpayment Assistance Accepted, but rarely used. § Gift Funds § City/County grants § Tribal Funds

Eligible Housing § § § Existing homes Condominiums Townhouses New Construction New Manufactured homes

Eligible Area’s § Marion County: EVERYWHERE but Salem/Keizer -June 15 th Woodburn will be eligible. § Polk County: EVERYWHERE but West Salem § Linn County: EVERYWHERE but Albany

Eligible areas: http: //eligibility. sc. egov. usda. gov/eligibility Bookmark as a Favorite

Map an address

Salem area

2% GUARANTEE FEE IS A DEAL! § Roll fee in above appraised value: No out of pocket needed § More cost effective than PMI § Tax deductible

USDA 101: File Flow § § § § Interview client Submit file to underwriter Submit approved underwritten file to USDA issues conditional commitment in 24 -48 hours Close the loan Submit closing package to USDA issues Loan Note Guarantee Only 1 additional form needed, RD 1980 -21 Contact Brian and Travis for information

This WILL impact your Business § Realtors across the country are seeing their Business explode with the help of this program. § Utilize our marketing materials to maximize your sales and listings.

FHA vs. USDA? § USDA § § $0 Down Rate = 5% APR = 5. 190% Total Payment = $1, 313. 64 § FHA § § $7000 Down Rate = 5% APR = 5. 192% Total Payment = $1, 366. 82 § Going USDA will save $53. 18 per month . Assuming-$200, 000 loan amount, $240 Taxes and Insurance per month Rates as of May, 20 th, 2009

Why use Travis? § § § § Product Knowledge Communication Honesty & Integrity In-house Processing, Underwriting, Docs and Funding 1 -2 day underwriting turn-times Local Business Owner Fantastic pricing, service and product line We just put on a kick butt presentation.

Travis Newton 503. 931. 4490 travis@todaysmortgagegroup. cow www. travis-approves. com

Q & A Session