Single-Family Housing Guaranteed Loan Program: Everything you must need to know [2022]


Affordable housing is extremely crucial for the sustenance of rural populations in the United States. Rural Development’s Single-Family Housing Guaranteed Loan Program enables families and individuals to purchase, construct, or repair affordable homes in rural America. These loans, loan guarantees, and grants are based on income and vary according to the average salary for each area.

Under certain eligibility circumstances, USDA Rural Development offers eligible people and families the option to buy or build a new single-family home, repair their existing home, or refinance their current mortgage with no money down through the program options listed below. There are also programmes to help non-profit organisations provide new homes or repair existing ones for eligible people.

What is Single-Family Housing Guaranteed Loan Program?

The Single-Family Housing Guaranteed Loan Program is a USDA Rural Development (USDA RD) program that provides loan guarantees to authorised lenders who are providing financing for individuals and families with low or moderate-income to obtain safe, clean, modest, and affordable homes in rural areas. This program reduces lenders’ risk by allowing them to provide 100 percent financing to qualified homebuyers who are unable to borrow funds from other sources. Loan funds may be used for the following:-

i) To purchase new or used residential property, such as detached, attached, condos, planned unit developments (PUDs), modular, and manufactured homes.
ii) To construct a house
iii) To perform renovation work or maintenance in the case of the purchase of an existing home.
iv) to refinance an eligible loan, available only to existing USDA borrowers.
v) For Grading, foundation plantings, seeding or sod installation, trees, walls, fences, and driveways are all part of the process of preparing a home site.
vi) To purchase necessities such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, and heating and cooling equipment.

How much amount you will get in Single-Family Housing Guaranteed Loan Program?

The loan amount in Single-Family Housing Guaranteed Loan Program is determined by the property’s market value, purchase price, and acquisition costs, including closing costs and reasonable/customary expenses.

Individual lenders determine interest rates, which may vary. The programme only offers 30-year fixed-rate loans, and there is no down payment or minimum credit score requirement to qualify.

Who Can Apply for Single-Family Housing Guaranteed Loan Program?

Applicants must satisfy the mentioned eligibility criteria to apply for Single-Family Housing Guaranteed Loan Program: –

i) They agree to live on the property as their primary residence.
ii) Meet the income eligibility requirements, which cannot be more than 115 per cent of the median household income.
iii) You must be a US citizen, a non-citizen national, or a qualified outsider.

Application Procedure for Single-Family Housing Guaranteed Loan Program

To initiate the application process, contact the Single-Family Housing Guaranteed Loan Program nationally approved lender of your choice to discuss specific loan terms.
Applicants are encouraged to contact their preferred private or state-based lender to find out if they are a USDA Rural Development-approved lender.
Applicants are also encouraged to search around for the best available service and financial options for their loans.

List of Single-Family Housing Guaranteed Loan Program lenders: –

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