Idaho Guaranteed Rural Housing Loans

Home funded by USDA Rural Development

The Section 502 Guaranteed Rural Housing (GRH) Loan Program is designed to serve rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. These loans enable low and moderate-income rural residents to acquire modestly priced housing for their own use as a residence through the purchase of a new or existing dwelling or the purchase of a new manufactured home. In this variation of the Section 502 program, Rural Development does not make a loan directly to an eligible borrower, but guarantees a loan made by an approved commercial lender. This guarantee substantially reduces the risk for lenders, thus encouraging them to make loans to rural residents who have only modest incomes and little collateral.

Commercial Lenders should visit the following site:
Lender Program Information


Topics on this page include:

  • Program Details For Applicants
  • How To Apply
  • Idaho Single Family Housing Contacts
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    Program Details

    Applicant must:

    • have adequate and dependable income.
    • be a U.S. citizen or be legally admitted to the U.S. for permanent residence.
    • have an adjusted annual household income that does not exceed the moderate income limits for the area.
    • demonstrate adequate repayment ability (i.e. 29% principal, taxes, insurance and interest; 41% total debt ratio). Repayment ratio acceptability is determined by the approved lender.

    Property must be:

    • located in an eligible rural area or community.
    • owner occupied and not income producing.
    • a new or existing stick built or modular home meeting HUD guidelines.
    • a new manufactured home on permanent foundation.

    Lender must be:
    A lending institution that has been approved as a Rural Housing Lender

    Loan Terms:
    30-year fixed rate mortgage, No Down Payment Required

    Interest:
    Negotiated between the approved lender and the applicant.

    Credit Requirements:
    Applicants must have a credit history that indicates a reasonable willingness to meet obligations as they become due. Credit acceptability is determined by the approved lender.

    Fees: A one-time upfront guarantee fee is charged to the lender and typically passed onto the applicant.  Starting Oct 2011, Guaranteed loans are also subject to payment of an annual fee.   Lenders may charge normal and customary fees for their services.  

    Resources:


    How To Apply

    Applications are made to local lenders. For a listing of approved lenders Click Here or contact your local USDA Rural Development office  for more information.

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