USDA, RURAL DEVELOPMENT
GUARANTEED RURAL HOUSING LOAN
Rural Development designated rural area:
Acceptable credit history:
Check maximum income for eligibility:
Applicant(s) have an adjusted household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income-such as annual child care expenses and $480 for each minor child-in order to qualify. USDA Rural Development field offices can provide information on the moderate income limits for the areas that fall within their jurisdictions, and can provide further guidance on calculating household income. There is an automated eligibility calculator at: http://eligibility.sc.egov.usda.gov
Applicant(s) repayment ability:
The ratio limits are 29 front (housing, PITI), 41 back (total debt, MOTI). Rural Development allows expanded repayment ratios if the applicants have sufficient compensating factors. The underwriter must recommend the expanded ratio(s) and provide compensating factors to Rural Development. Rural Development must concur with the underwriter’s recommendation in order to expand the ratios.
Other eligibility criteria:
Loan-To-Value (LTV) and Loan Limit:
-Limiting factors will be ratios and income limit
FHA appraisers in the area can be found on the FHA web site: https://entp.hud.gov/idapp/html/apprlook.cfm
Existing (previously occupied) manufactured home financed under limited circumstances when home presently financed by USDA.
New manufactured homes: Rural Development will finance new manufactured homes through approved dealer-contractors. Contact your local Rural Development office for a list of approved dealer-contractors and the specifics of how new manufactured homes can be financed.
Modular homes: New or existing modular homes can be financed the same as stick built homes.
Condo: Rural Development can finance if it meets the standards for Fannie Mae, Freddie Mac, VA, or FHA.
Town home: Same as condo. A town home must have provisions for maintenance such as HOA.
Any existing improvements located in a special flood hazard area must have federal flood insurance coverage. New construction is not permitted until a Letter of Map Revision/Amendment is issued by FEMA.
One time guarantee fee based on the final loan amount
This fee can be financed along with other closing costs. The first mortgage guaranteed loan cannot exceed appraised value by more than the amount of the fee financed. No mortgage insurance requirement.
Term: 30 year fixed
Prohibited Loan Purposes:
THIS IS A QUICK GUIDE OF THE RURAL DEVELOPMENT GUARANTEED RURAL HOUSING PROGRAM. FOR ADDITONAL INFORMATION, CONTACT YOUR LOCAL RURAL DEVELOPMENT OFFICE.