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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 (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 cannot be exceeded. 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.

FY 2009 Allocation

FY 2009 funding is available at this time.  

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

In FY '06, 384 loans to families were made in Georgia with over $45,490,000 loaned.

In FY '05, 385 loans totaling over $44,219,000 were made under this program.

In FY '04, more than $49,727,000 was loaned to 440 families.

In FY '03, over $52,720,00 was obligated under this program.  534 families were able to purchase a home that year with this assistance.

Lenders Handbook

If you would like to download a copy of the 2009 Lenders Handbook (updated April, 2009), please click here.

Forms

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

The following items might answer some more questions for you.

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 submit the GUS Sign Up document to the Georgia State Office.  Ashley Carlan is the GRH Specialist and you can reach her at 706-546-2169 or ashley.carlan@ga.usda.gov.

Last Updated : May 21, 2009