Rural Development

Housing Guaranteed

Home Financing Options for Real Estate Professionals

100% Guaranteed loans help you sell more homes!

The Advantages:

• Loan closings within normal time frame. Lenders control the closing.

• Loan up to appraised value plus the guarantee fee.

• Include closing costs/repairs/renovations in the loan.

• No need to increase contract price for seller paid closing costs.

• No monthly mortgage insurance (MI).

• Maximum loan amount is 100% of the appraised value plus the one time guarantee fee of 2% (up to 102% LTV)

• No cash contribution or cash reserves required from applicant.

• Non-traditional credit may substitute for lack of traditional credit history.

• No minimum credit score.

• Repayment ratios are 29/41. 

  • Ratio waivers are allowed with documented compensating factors.

• Not limited to first-time home buyers.

• Competitive market based fixed interest rates with 30 year term.

• No need to change lender relationships. 

  •  Any lender can originate loans through an Agency approved lender.

• Rural Development provides support for questions, training, and outreach assistance.

Frequently Asked Questions

Applicant Eligibility: 

• Occupy the property as your primary residence.

• Do not own an adequate home.

• Do not have sufficient cash for a 20% down payment plus pay typical loan closing and relocation expenses.

• Be a U.S. citizen, a U.S. non-citizen national or a “qualified alien”. 

• Provide stable and dependable income for repayment ability.

• Have a credit history that indicates a willingness to meet obligations as they become due.

• Have an adjusted household income that is within Rural Development guidelines based on the number of persons who will occupy the home.  

• Purchase a residential property that is located in a Rural Development eligible area. 

 Agency Approved (underwriting) Lender list.

• Consult with your local Rural Development Office for Lenders in your area

• Rural Development Approved Lender List

• Any lender may participate regardless of Rural Development approval status.

Checklists and web site links:

• Determine if the property is within the Rural Development eligible area. 

  • Use the link "Single Family Housing" under "Property Eligibility". 

• Determine if your  adjusted household income is within the Agency limits,

  • Use the link "single family housing" under "income eligibility"

• What is "adjusted household income"?

• What is "repayment income"?

• Useful web links

 Brochures and guides:

• Guaranteed Loan brochure

• A “quick guide” overview to Guaranteed Loans

•  For additional information contact your local Rural Development office. 

Training

• Guaranteed Lender Training

  • MS PowerPoint format   See the notes view for detailed loan program information.

  • "Flash" presentation 

• For additional training, contact your local Rural Development office. 

Find a Rural Development office. 

• The Rural Development Office Locator website is: http://www.rurdev.usda.gov/recd_map.html  

• You can always look us up in the telephone directory blue pages under “United States Department of Agriculture”, and then look for “Rural Development” or “Rural Housing Service.

Thank you for visiting our web site.  We look forward to working with you as partners in providing affordable housing opportunities in rural areas.  Let us know how we can further serve you.