Rural Housing Program
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Transcript of Rural Housing Program
Rural Housing Program
Rural Housing Program
To be eligible for the Rural Housing Program, a property must be located in a rural development-eligible area.
Rural Housing Program
Rural Development-eligible areas are: Areas with open country* Areas with populations of 10,000 or
less (10,000-25,000 population in certain areas)
http://eligibility.sc.egov.usda.gov
*no farms, no income producing properties. Land value of site cannot exceed 30% of total property value.
Rural Housing Program
First time home buyers
Rural Housing Program
No down payment required
No mortgage insurance requiredAbility to finance closing costs
Rural Housing Program
No reserve requirements
*Call your Loan Officer for details about specific borrower criteria.
No minimum FICO score*
Rural Housing Program
Income limits based on area (see http://eligibility.sc.egov.usda.gov )
Maximum loan amount is based on income (29%/41%)
Rural Housing Program
Total Loan to Value = 102%
Example:
Rural Housing Program
Gifts and grants ARE allowed from: Relative Friend Charitable organization or Non-profit organization
Rural Housing Program
No limits on how much a seller can contribute.
Rural Housing Program
Unsecured loan is allowable for closing costs and pre-paid items*.Loan can be from relative,
bank, credit union, even a credit card cash advance!
*Minimum credit score 660 for unsecured loan
Rural Housing Program
30 year fixed rate Borrower may not own any other
real estate Borrowers must be U.S. citizens
or permanent resident aliens
Rural Housing Program
No manufactured homes
No in-ground swimming pools
No construction draws
Rural Housing Program
Home counseling may be required in certain circumstances, if for example: there are no previous housing
expenses, or there is no established positive
credit that demonstrates ability to make timely mortgage payments
Examples of home counseling are Fannie Mae’s “Guide to Homeownership” program and comparable programs from non-profit organizations
Rural Housing Program
Requirements for your state’s Rural Development program
Income requirements: Definition of ‘rural’: States are currently considering making
the homeownership counseling mandatory for all first time home buyers. What is your state doing?
Complete this
informatio
n with
your s
tate’s require
ments:
Rural Housing Program
Thank you for your kind attention.