What does this program do? This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.
How may funds be used? Funds backed by loan guarantees be used for:
New or existing residential property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
A site with a new or existing dwelling
Repairs and rehabilitation when associated with the purchase of an existing dwelling
Refinancing of eligible loans
Special design features or permanently installed equipment to accommodate a household member who has a physical disability
Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways
How do we get started? Applicants must contact an approved lender. Applicants can review a partial list of approved lenders and information about all of the approved lenders in your state can be obtained by contacting your state’s Guaranteed Loan Coordinator.
HB-1-3555- SFH Guaranteed Loan Program Technical Handbook
Why does USDA Rural Development do this? This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.
NOTE:Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contactyour local officefor assistance.
Author:Prescilla Walker Phone: 864-329-7667 Dated: February 1st 2016 Views: 540 About Prescilla: ...
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