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Rural
Development
Guaranteed Housing
Home Financing Options for Builders
Home
Builders: Expand your business today!
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Advantages
Frequently Asked Questions
Applicant
Eligibility
Checklists & web sites
Brochures and guides.
Training
Find a Rural Development
office
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100% Guaranteed financing will enable you to build more homes for the
growing population of homebuyers wishing to build, but do not have the
down payment required of other loan types. Sell more homes and increase
your earnings. Work with local lenders and use the Guaranteed Loan
program.
This product
will enable you to assist your clients that may face barriers in
obtaining conventional financing. It will expand your customer
base to include low and moderate income home buyers. You may reach
more qualified buyers giving you the opportunity to sell more homes and
increase your earnings.
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100% LTV financing with no mortgage insurance.
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Expanded
qualifying ratios and flexible credit guidelines offer your clients more
opportunities to purchase your affordable homes.
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No maximum
purchase price.
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Many
property types qualify:
Stick built, condominiums, townhouses,
modular, new manufactured.
Rural
Development assists thousands of clients annually to become homeowners.
This year we want you as our partner! Call your local Rural Development office today
and learn which areas near you are eligible for financing.
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Advantages:
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Loan closings within normal time frame.
Lenders control the closing.
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Loan up to appraised value plus the guarantee fee.
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Include closing costs/repairs/renovations in the loan.
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No
need to increase contract price for seller paid closing costs.
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No
monthly mortgage insurance (MI).
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Maximum
loan amount is 100% of the appraised value plus the one time guarantee
fee of 2% (up to 102% LTV)
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No
cash contribution or cash reserves required from applicant.
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Non-traditional credit may substitute for lack of traditional credit
history.
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No
minimum credit score.
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Repayment ratios are 29/41.
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Not limited to first-time home buyers.
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Competitive market based fixed interest rates with 30 year term.
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No
need to change lender relationships.
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Rural Development provides support for questions, training, and outreach
assistance.
Frequently Asked Questions
Applicant eligibility criteria:
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Occupy
the property as your primary residence. Do not have sufficient cash for a
20% down payment plus pay typical loan closing and relocation expenses.
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Provide stable and dependable income for repayment,
be a U.S.
citizen, a U.S. non-citizen national or a “qualified
alien”.
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Demonstrate an ability and willingness to meet obligations and
debts as they become due.
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Have an adjusted
household income that is within Rural Development guidelines based on
the number of persons who will occupy the home.
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Purchase a residential property that is located in a
Rural Development eligible
area.
Checklists and web site links:
Training
Brochure and guides:
Finding a Rural Development office.
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Even though you
will not be applying directly to Rural Development for the loan, you may want
additional information. Or perhaps you will want to pass along the Rural
Development contact information to your realtor or builder, or loan officer.
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The Rural
Development Office Locator website is:
http://www.rurdev.usda.gov/recd_maps.html
Or you can go to the home page of Rural Development for your
state to find a listing of their offices.
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You can always look us up in the telephone
directory blue pages under “United States Department of Agriculture”, and then
look for “Rural Development” or “Rural Housing Service.
Thank you for visiting our web site. We look forward to
working with you as partners in providing affordable housing opportunities in rural
areas. Let us know how we can further serve you.
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