Georgia
	Text Version of Site

Guaranteed Single Family Housing Loans


Description:

The purpose of this program is to assist moderate income (up to 115 percent of median income) households in obtaining modestly priced housing by providing them with the first opportunity for home-ownership. This program encourages lenders to provide financing to qualified applicants by reducing the amount of risk involved. Meaning, Rural Development guarantees the lender up to 90 percent of the loan principal in the event the borrower defaults on the loan.

Loan Terms

There is no loan limit for this program. No downpayment is required. In some cases, all closing costs can be rolled into the loan. Loan terms are for 30 years (no exceptions) and interest rates are negotiated with the lender. However, interest rates cannot exceed the Fannie Mae 90 day rate currently being charged plus an additional .6% premium, rounded  up to the nearest 1/4 (to check this rate, you can go to this site and use the 30 year, fixed rate, actual/actual 90 day table) or the 30 year VA rate.  Repayment ratios are set at 29/41%. With few exceptions, these ratios can be exceeded with strong compensating factors. Because of the USDA guarantee on these loans, homeowners pay no monthly mortgage insurance premium. No minimum credit score is required for creditworthiness.

Who Is Eligible?

Loans are made available to individuals, single parents, and families who are within the modest income limits for the county in which you wish to live.

Other Criteria:

Interested applicants may apply for assistance for financing at any approved Guaranteed lender.

Current FY Allocation

FY 2010 funding is available at this time.  

In FY '09 - 4,410 loans to families were made in Georgia with over $527,054,538 loaned.

In FY '08 - 1,265 loans to families were made in Georgia with over $152,043,000 loaned.

Lenders Handbook

If you would like to download a copy of the Lenders Handbook, please click here. (currently unavailable)

Forms

The following forms may be needed in the processing or closing of a Guaranteed Housing Loan.  Forms are in .pdf format.

Guaranteed Underwriting System (GUS)

A new tool for underwriting guaranteed loans is available under GUS.  To find out more about GUS, please see the GUS Lender's Guide.  To apply for GUS approval, please click here for the GUS Sign Up document.  Ashley Carlan is the GRH Specialist and you can reach her at 706-546-2169 or ashley.carlan@ga.usda.gov.

Last Updated : May 13, 2010