Idaho



Section 502 - Guaranteed Single Family Housing Loans - GRH

GRH Underwriting Guide Million Dollar Lenders

GRH Lender Information

The Section 502 GRH program provides moderate income families with access to affordable home ownership in eligible rural Areas. Approved GRH lenders provide home purchase financing no down payment and no mortgage insurance. Financing can include closing costs and repairs up to the property's appraised value.

Type of Assistance: A non-subsidized homeownership financing program targeting (but not limited to) first time home buyers. Loans may be made up to 100% loan to value.
Eligibility Requirements: Applicant family must:

1.      Have an acceptable credit history

2.      Have an adequate and dependable source of income not exceeding 115% of the U.S. median family income

3.      Have repayment capacity - Maximum ratios: 29% for principal, interest, taxes and insurance / 41% total obligations

4.      Be a citizen or non-citizen admitted to the United State of America for permanent residence or on indefinite parole

5.      Have the ability to personally occupy the home on a permanent basis

6.      Be located in a community with a population of 10,000 or less (selected communities with a population between 10,000 - 20,000 are also eligible)

Property Eligibility: Property must be:

1.      A new or existing stick built or modular home meeting HUD guidelines.

2.      A new manufactured home on permanent foundation.

3.      Owner occupied and not income producing.

4.      Located in an eligible rural area or community.
Interest Rate: Negotiated between the lender and the borrower (cannot exceed Fannie Mae's 90-day actual/actual rate plus 6/10 of 1%).
Terms: 30-year fixed rate mortgage.
Collateral: Deed of Trust on real estate financed.
Credit Requirements: Applicant family must have a credit record which reflects a history of meeting obligations as they become due.
To Apply: Applications are made to local lenders. For a listing of lenders click here or contact a local USDA Rural Development office for more information.