SFHGLP - New Lender

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) 284-4486 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.