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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 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 2005 Allocation

FY 2005 funding is presently available. G-RH loan funds are expected to be sufficient to meet the demand this year.

Lenders Handbook

If you would like to download a copy of the 2005 Lenders Handbook (updated April 2005), please go here.

Forms

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

Last Updated : May 10, 2005