IMPORTANT NOTICE:

 

 

Please be advised that all the information provided below is courtesy of the USDA. This information is not intended to guarantee loan approval - All potential borrowers are subject to verification of credit history and/or worthiness by an approved Guaranteed Housing participating lender and/or their local USDA office. The following items listed below are just some of the highlights of each program that is currently being offered. This section is intended for informational purposes only! Interest rates, income limits, credit eligibility, terms/conditions and loan products are subject to change at any time. Information is deemed reliable, but is not guaranteed. 

Single Family Guaranteed Housing Loan

Please Review Some of the Key Points to the USDA Guaranteed Housing Loan:

 

       *GENEROUS Qualiftying Income Limits!!!!!!! For example, a family of 3 in                Chautauqua County can have a total annual household income of up to               $74,750 a year and still be eligible! 

  • The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included.
  • Guarantee Fee applies: may be rolled into the loan amount.
  • Flexible credit guidelines. Non-traditional credit histories may be accepted.
  • Fixed 30 year interest rates apply. Lenders and applicants agree upon interest rate.
  • Qualifying ratios are 29% for housing costs and 41% for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.
  • No maximum purchase price. Qualifying ratios and the applicant’s stable and dependable income will determine home affordability.
  • Eligible property types include existing homes, new construction, modular homes, Planned Unit Developments (PUD’s), eligible condominiums and new manufactured homes.
  • Eligible closing costs and lender fees may be included in the loan or paid by the applicant.
  • Gift/Grant Funds/Mortgage Credit Certificates (MCC’s)/Seller Concessions are allowed.
  • Eligible repairs and improvements may be included in the loan.
  • Applicants apply with an approved lender of their choice.
  • Not limited to first time homebuyers.

 

 

 Please contact me to obtain a copy of the Guaranteed Housing Income Limits. Please be sure to include which county you are looking to purchase in!

Single Family Housing Direct Loan Information

 

 

Purpose:

 

Section 502 Program Objective:Section 502 of the Housing Act of 1949, as amended authorizes the Rural Housing Service(RHS) to provide financing to low and very low-income persons who cannot obtain credit from other sources, to obtain adequate housing in rural areas.

 

Program Highlights:

 

1. No Down Payment Required!

2. Escrow for taxes and insurance.

3. Repayment period is 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

4. Dwelling and Site Requirements must be met. Please contact me for more information or to see if a property is located in a rural area as designated by RHS.

5. Borrowers might be asked to attend an approved home buyer's course.

6. Applicants or borrowers who receive loans on program terms are typically eligible to receive payment subsidy if they personally occupy the property and have an adjusted income at or below the applicable “low” income limit for the area. This subsidy will help to reduce the amount of your monthly payments. 

7. Each borrower on payment assistance will be reviewed at least bi-annually to confirm eligibility and to determine the appropriate subsidy.

8. Payment assistance is subject to recapture if you choose to sell the property.

9. Interested parties can submit an application to the USDA if they have a past bankruptcy and/or foreclosure, as long as the discharge or foreclosure date is at least 36 months old. 

10. All funds are subject to availability! Applicants must demonstrate adequate repayment ability. Income must be sufficient to meet debt to income ratio requirements. Adjusted household income must not exceed the applicable low-income limit for the area.

11. Applicants must agree to and have the ability to occupy the dwelling on a permanent basis.

12. Current homeowners are not eligible for initial loans except as follows:

a) Refinance an existing loan if the applicant is in danger of losing their home for reasons beyond their control. b) Their current dwelling is not structurally sound, functionally adequate, or large enough to accommodate the needs of the applicant. c) Make necessary repairs to a property financed with an affordable non-RHS loan.

13. Must have a satisfactory credit history.

14. Applicant must be unable to secure the necessary credit from other sources on terms and conditions that the applicant could reasonably be expected to fulfill.

 

 

Please contact me to obtain a copy of the Direct Housing Income Limits or to receive more information. Please be sure to include which county you are looking to purchase in!

 

Loan Purposes:


Section 502 funds may be used to buy, build, rehabilitate, improve, or relocate an eligible single family dwelling and improve related facilities for use by the borrower as a permanent residence.

 


 


 

 


Section 504 Loan and Grant Program

Section 504 Program Objective:

 

 Section 504 loans and grants are intended to assist very low income households in rural areas repair their homes.

 

Loan Purposes:

 Loan funds may be used to make general repairs and improvements to properties or to remove health and safety hazards, as long as the dwelling remains modest in size and design. Please use the contact link below to request an informational brochure. 

 

Grant Purposes:

 Grant funds may be used only to pay for the costs of repairs and improvements that will remove identified safety hazards or to repair or remodel dwellings to make them accessible for household members with disabilities. Applicants must be at least 62 years of age or older to apply for this grant. Additional requirements must be met, please use the contact link below to request an informational brochure. 

 

For more information, please contact me and remember to include the county that you are looking to purchase or apply for grant money in. 

 

Attention Sellers!

If you own a property and you're thinking of selling, contact me! I will be glad to do the research and see if your home is located in a designated area that is approved by the USDA Rural Housing program. This is a great way to increase your exposure and attract potential buyers quickly!