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Home Loan Guarantee Program in Tennesse |
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General > 29% PITI, 41% TD ratios (waivers allowed) > Debts with 6 months or more owed will be counted > Property must be located in eligible rural areas > Land value cannot exceed 30% of total value > No in-ground swimming pools > No substandard homes > No existing manufactured homes > CAVIRS number(s) required - Eligibility > First time homebuyer not a requirement > Income must be within limits > Income must be adequate and dependable > Adequate ability to repay the loan (history) > Acceptable credit history > Cannot obtain conventional financing > Citizen or permanent legal resident > Owner occupied > Legal capacity to incur debt > Bankruptcy OK if discharged for 36 months Income Eligibility > All household income counted > Overtime, bonuses and commissions count, if supported by history > Child support counts - 12 month history needed > Self-employment (use IRS net income) 2 year history plus current info > Same job or line of work for past 24 months > Degree or certification can substitute for job time > All income verified including wages, social security, public assistance etc Gross Income Deductions > $480 annually for each child under 18 > Over 18 counts if full time student living at home > Actual child care expenses for children under 12 if parents work/school > $400 annually for applicant or co-applicant if handicapped or elderly > Medical deductions may be considered for handicapped or elderly Key Points > No PMI or MIP > Terms - 30 years > Guarantee fee 2% of loan amount > Refinance fee 0.5% of loan amount > Appraised values can be exceeded by amount of > guarantee fee - up to 102% LTV > Streamlined credit documentation with FICO score of 620 or higher Loan Purposes > Purchase new or existing home > Pay closing costs for loan (no discount points) > Pay pre-paid insurance > Pay necessary repairs > Purchase land and construct new dwelling Existing Dwellings > Satisfactory appraisal > Well test > Septic system certification > Termite letter New Construction > Satisfactory appraisal > Thermal certification > Plan certification > One year warranty on footings, framing and final inspection. > Or 10 year warranty on final inspection > Termite treatment certificate > Well test > Septic system certification > New manufactured home financing possible (call for details) |
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3322 West End Avenue, Ste 300 Nashville, TN 37203 615-783-1376 615-783-1391 fax Tom Favreau - 615-783-1364 GRH Team Leader 4 Shinika Jenkins - 615-783-1333 _ John Prince - 615-783-1324 _ Ann Markham - 615-783-1372 |
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Rural Development invested more than $128 million in single family housing loan guarantees in Tennessee during FY-2006. The Home Loan Guarantee Program works with private lenders to help eligible families or individuals buy, build and refinance homes in rural areas with financing up to 100% LTV. >TN Guaranteed Home Loan Lenders Handbook > Guarantee Fee Calulator (Excel Software) > Ineligible Area Maps - by County
> Multi-Family Housing program Become an approved Rural Development guaranteed lender > > |
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Quick Reference Guide download guide as .pdf |
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You are here: RD-Tennessee Home / Housing Programs / Guarantee Program |
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USDA is an equal opportunity provider, employer and lender. |
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> Request Reservation of Funds > Guaranteed Loan Closing report > AD 1047 Certification Re: Debarment, Suspension and other responsibility matters-primary covered transactions Regulations Servicing-Disposition |
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> Eligibility Details Property & Income > FHA Appraisers Roster Using these appraisers may reduce the number of inspections required for guarantee approval. > ASC Appraisal Roster Appraisers used must be on this list. > Federal Excluded Parties A list of people who have been debarred from doing business with the Federal Government. > Fannie Mae Current interest rates > THDA Tennessee Housing Development Agency—Educational and down payment assistance available to qualified homebuyers. |
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