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Program: USDA Single Family Housing Guaranteed Loan Program

Detail Verified 12/7/2018 - Last Updated 3/4/15

Program Overview

A loan program that provides up to 100% financing for households with an income up to 115% of the median income for the area. The Guarantee eliminates the need for a down payment. Customers receive 30-year loans with fixed interest rates. Guaranteed Single Family Housing Loans are originated by approved mortgage lenders to assist qualified low to moderate income households in eligible rural areas.

Eligible properties must be in a rural area with a population not in excess of 35,000 that is not contained in a metropolitan statistical area and is in an eligible location. See http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Who is Eligible for this Program?

Borrower must: not currently own an adequate home, have a household income within Single Family Housing Guaranteed Loan Income Limits based on household size, have adequate income for repayment ability, and have reasonable credit history. Applicants cannot exceed the moderate income level for area (115% of the median income).

Applicants cannot exceed the moderate income level for county (115% of the median income).

Guaranteed loans are available up to 100% of appraised value. Household income limit will depend on the number of household members and the county in which the household resides. To factor your household’s eligibility, see http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11

Funds to be used to finance construction of a single family residence or purchase of an existing single family residence.

Is this program for first time buyers only?: No

Property Eligibility Requirements

Location Eligibility Details: Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and-under certain conditions-towns and cities with between 10,000 and 35,000 residents.
See http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Allowable property types: Financing for construction of a single family residence, or purchase of an existing single family residence. Eligible property types include existing homes, modular homes, Planned Unit Developments (PUDs), eligible condominiums and new manufactured homes.

Benefit Details

Loan term is 30 years for guaranteed loans. Fixed rate determined by approved lender.

Benefit: No down payment required. Closing costs can come from any source including gifts. Gift/Grant Funds/Mortgage Credit Certificates (MCCs)/Seller Concessions are allowed. One time guarantee fee based on the final loan amount. This fee can be financed along with other closing costs. 100% Finance closing costs, if market value is sufficient. Expanded ratios of 29/41%. Utilize in conjunction with State Housing Authorities, if available. Flexible credit score guidelines. Repairs and improvements can be included in the loan. Apply with a local participating lender of your choice.

Loan Term: 30 years

Homebuyer Counseling / Education Required: Yes

Owner Occupancy Required: Yes

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