NASHVILLE, Tenn., Jan 14, 2014 -- USDA Rural Development (RD) announced today that the agency's home loan guarantee program reached a record high in Tennessee as private lenders used the program to help 6,913 families and individuals buy a home in rural areas in fiscal year 2013. The total private/public investment topped $846 million in Tennessee.
"Homeownership builds strong communities," said RD Housing Program Director for Tennessee Don Harris. "Our private lending partners have done an outstanding job using this program to increase the number of affordable loans they can make for families across the state."
"Another great thing about the program is that it is basically self-funded and allows private sector lenders to make more loans to qualified buyers at highly competitive rates." Harris said, "The program often improves the repayment terms since we can usually go up to 100 percent of the appraised value as well."
Currently, 119 participating private lenders participate in this program in Tennessee. Participating lenders in Tennessee that exceeded $10 million in loans during FY 2013 included:
1. First Community Mortgage, Murfreesboro - $84,238,567 for 707 loans
2. Mortgage Investors Group, Knoxville - $76,194,677 for 630 loans
3. Peoples Home Equity, Brentwood - $43,054,768 for 323 loans
4. Guaranty Trust Co., Murfreesboro - $37,815,692 for 326 loans
5. First State Bank, Jackson - $31,163,923 for 282 loans
6. F & M Bank, Clarksville - $26,217,879 for 258 loans
7. Regions Bank, Nashville - $25,349,121 for 213 loans
8. Primelending, A Plainscapital Co., TX - $21,452,218 for 159 loans
9. Acopia, LLC, Goodlettsville - $20,426,378 for 150 loans
10. Residential Acceptance Corp., FL - $19,087,199 for 161 loans
11. Patriot Bank, Atoka - $16,446,004 for 120 loans
12. Wells Fargo Bank, MN - $15,836,505 for 124 loans
13. American Southwest Mortgage Corp., OK - $15,638,627 for 153 loans
14. First National Mortgage Service , Murfreesboro - $15,631,996 for 143 loans
15. Primary Residential Mortgage, UT - $14,374,931 for 107 loans
16. Franklin American Mortgage Co., Franklin - $13,930,077 for 117 loans
17. JP Morgan Chase Bank N.A., FL - $13,056,065 for 124 loans
18. First National Bank of McMinnville - $12,824,975 for 110 loans
19. Community Mortgage Corp., Memphis - $10,525,827 for 70 loans
Harris said, "Rural Development loan-guarantee programs help homeowners and rural businesses by working with private lenders to increase the pool of investment capital available for home loans, as well as business start-up, expansion and modernization."
Homeowners looking to alleviate unsafe conditions, make repairs, or add needed space may be eligible for an RD home-repair loan. The interest rate on these loans is fixed at one-percent and payments may be spread over as much as 20 years to keep the monthly payments affordable.
Home loans may be made without a down payment and eligible applicants may qualify for financing up to 100 percent of the appraised value. Depending on an applicant’s income, monthly payments may be based on an interest rate as low as one percent. Loans are typically made for 33 years at a fixed interest rate with varying income limitations depending on the county. Rural Development staff will help applicants calculate their adjusted household income and complete the application process. Existing Guaranteed or RD Direct loan borrowers may refinance their homes under the GRH loan program. This provides a borrower with an opportunity to obtain a possible lower interest rate.
USDA Rural Development invests in jobs, infrastructure, community development, health, education, homeownership and affordable rental housing to improve the economic health of rural communities. During the last four years the agency has assisted more than 1.5 million Tennessee families and businesses in 158 communities, investing more than $3.7 Billion into local economies through affordable loans, loan guarantees and grants.
For more information on the meeting or USDA Rural Development programs available in Tennessee contact your local RD office or visit us online at www.rurdev.usda.gov/tn/.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users).