Single Family Housing - Guaranteed Loans
Purpose: What is the Program's Goal? To assist eligible applicants in buying their homes by guaranteeing private lenders' loans.
Program Type: How does it work? USDA Rural Development guarantees loans made by approved mortgage lenders.
Eligible Applicants: Who can apply? Families/individuals of moderate income or less apply directly to an approved mortgage lender. Applicant's adjusted annual family income must not exceed 115% of median income for their area. Find your family income limit.
Eligible Areas: Unincorporated rural areas in Colorado, cities and towns with populations of 10,000 or less. Certain areas with populations of 10,000 to 20,000 may also be eligible.
Authorized Purposes: What can funds be used for? To purchase new or existing homes which are modest in cost. There is no mortgage limit or down payment required.
Typical Amount of Assistance: Up to 100% of market value of home.
Rates & Terms (rates subject to change): Mortgage lender's interest rate is negotiated, but is a fixed 30 year loan. The guarantee fee is 2%. PITI must not exceed 29% of gross monthly income and Total Debt must not exceed 41% of gross monthly income.
Key to Success: Applicant should have good credit and ability to repay loan.
When to Apply: Year-round. Government funding is on a fiscal year basis, October to September.
Who to Contact: Participating mortgage lenders or your local Rural Development Office. Locate your nearest USDA-Rural Development Office.
Last Revised 04/10/2009 - Contact the webmaster