SFHGLP - New Lender

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Single Family Housing Guaranteed Loans are funded by approved conventional lenders. USDA guarantees repayment of the loan by issuing a "Loan Note Guarantee" to the approved lender. These loans are available to assist below moderate-income households to become homeowners.

Application is made at the office of a participating lender or mortgage broker. The approved lender will apply to USDA Rural Development for a guarantee on the loan.

Lender Benefits

  • Expand Portfolio with 100% Lending
  • Combine with Iowa Finance Authority Products Go to Iowa Finance Authority
  • Combine with other down payment or closing cost assistance programs
  • Fast turn-around - approvals are issued within 24 hours
  • User-friendly program
  • Marketable Loans
  • Help meet CRA requirements

Program Terms

  • 100% Loan To Value
  • 30-year fixed rate
  • Finance Closing Costs and Improvements
  • No Mortgage Insurance
  • Funds may be used to construct a new home or buy an existing home
  • Real Estate Taxes and Insurance must be escrowed

Applicant Eligibility

  • Fall under the applicable moderate income limit - See eligibility requirements
  • Be unable to obtain financing elsewhere
  • Have adequate and dependable income
  • Have a reasonable credit history
  • Have repayment ability
  • Be a US citizen or a qualified non-citizen
  • Have legal capacity to incur a loan obligation

Homes that Qualify

  • New stick, modular, or manufactured homes
  • Existing stick or modular homes
  • Existing homes must be in good repair, structurally sound and meet HUD Handbooks 4150.2 and 4905.1
  • No restrictions on the size or design or the dwelling financed
  • No mortgage limit
  • Homes must be located in rural areas - See eligibility requirements

Lenders interested in applying to become an approved lender in Iowa may click here for the application package.

Lenders or brokers interested in participating in the program as a submitting lender (without approved status) please contact Linda Rhoades at (515) 284-4723 or linda.rhoades@ia.usda.gov.

For more information regarding the above program, contact the USDA Rural Development State Office at (515) 284-4663 Ext. 4 or linda.rhoades@ia.usda.gov.

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