 |
|
USDA Rural Development's Guaranteed Rural Housing (GRH) Loan Program is designed to assist rural home buyers who have the dependable income and satisfactory credit history needed to qualify for a conventional mortgage, but not the down payment funds. The GRH program encourages lenders to provide financing to qualified home buyers by reducing the amount of risk involved for the lender. The intent of the guaranteed loan program is to assist moderate income families who can afford market interest rates but who cannot qualify for conventional financing due to insufficient saving for the down payment. |
|
 |
PROGRAM HIGHLIGHTS |
 |
|
|
up to 110% financing. No Down Payment required!
Maximum loan amount up to 100% of appraised value
Loan can include closing cost if appraisal higher than price
No Monthly mortgage insurance premium
One-Time 2% Guarantee Fee on purchase transactions
0.5% Guarantee Fee of refinance transactions
No cash reserves requirement
Borrowers do not have to be first time buyers
No limit on seller contributions |
|
|
INTEREST RATE AND TERMS |
|
|
|
30 year fixed-rate, fully amortized loans only
Interest rate is negotiated between the lender and borrower |
|
|
PROPERTY REQUIREMENTS |
|
|
|
Property must be located in an eligible rural area.
Site value should not exceed 30% of the total appraised value
One-unit, non-farm, primary residences, including single family
dwellings, condos, and PUDs |
|
|
INCOME AND CREDIT REQUIREMENTS |
|
|
|
Qualifying ratios a 29/41. Up to high 30's PITI
High 40's MOTI with strong compensating factors
Credit score of 660 + considered a strong compensating factor
Credit score of 720 considered excellent compensating factor
Adjusted annual income may not exceed 115% of the median
household income
Source of income must be adequate and dependable, typically
with 24 month history
Be more than one 30 day late payment in the last 12 months
Bankruptcies to be discharged for at least 36 months
Adverse credit waivers may be granted for mitigating factors
such as loss of job, reduction in income and illness |
|
|
CLICK HERE TO CONTINUE »» |
|
