USDA Rural Development

1
USDA Rural Development

• Grants loans for non-profits
• Homeownership
• Home Repair
• Serve rural areas

2
USDA Rural Development Mutual Self-Help Grants

• Public private non-profit organizations
• Used to operate a mutual self-help program
• Covers admin expenses, necessary tools
• Up to 15 of cost of modest housing times the
  number of homes to be built
• Serve applicants up to 80 MHI

3
USDA Rural Development Technical Supervisory
Assistance (TSA) Grants

• Public private non-profit organizations
• Used to fund homeownership financial counseling
  and delivery of housing programs
• Covers admin expenses
• Serve applicants up to 80 MHI
• Nationally competitive under a NOFA

4
USDA Rural Development Site Loans

• Public private non-profit organizations
• Used to acquire and develop land
• Covers admin expenses
• Repaid from the sale of lots within 2 yrs
• Serve applicants up to 115 MHI

5
USDA Rural Development Home Ownership Programs

• Guaranteed Rural Housing (GRH) Loans market
  interest rate made by local lenders
• Direct Loans subsidized interest rate made by
  local USDA Rural Development Offices
• 100 LTV

6
Affordable

• GRH loans are guaranteed by USDA Rural
  Development eliminating the requirement for
  Private Mortgage Insurance
• Direct loans are subsidized to reduce the monthly
  payment

7
Flexible

• Can include money for repairs
• Can be used for new construction

8
Income Limits

• Based on family size for the county of residence
  as a of Median Household Income
• GRH 115
• Direct 80

9
Repayment Ability

• 29 PITI (Principal Interest RE Taxes
  Insurance)
• 41 TD (Total Debt)

10
Credit History

• If credit score is at least 660 and there are no
  judgments, we dont analyze credit history
• Credit issues may be waived if we determine
• Loan will reduce housing costs or
• Circumstances were temporary, beyond applicants
  control, and have been resolved

11
Loan Limits

• Direct varies by county (113,700 - 154,800)
• GRH limited by repayment ratios and income limits

12
Other Requirements

• U. S. citizen or a qualified alien
• Cannot already own an adequate home
• Personally occupy the home
• Unable to get a conventional loan (20 down)
• Rural areas only

13
USDA Rural Development Repair Loans and Grants

• Used to make essential repairs
• Serve rural homeowners up to 50 MHI
• Grants limited to those 62 and older who cannot
  repay a loan

14
USDA Rural Development Repair Loans and Grants

• Maximum loan 20,000 at 1, 20 yrs
• Maximum grant 7,500 lifetime
• Grant must be repaid if house sold within 3 years

15
Eligibility Web Site

• http//eligibility.sc.egov.usda.gov/eligibility/ma
  inservlet
• Shows if a specific property is in an eligible
  area
• Maps of ineligible areas
• Check income eligibility

16
Where to go for more information

• Contact local USDA Rural Development Office
  serving your area
• http//www.rurdev.usda.gov/in/
• [phone] ext 558
• Paul.Neumann_at_in.usda.gov