Program Description

This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

General Program Requirements

Who may apply for this program?

Applicants must:

  • Meet income-eligibility: http://www.rd.usda.gov/files/RD-GRHLimitMap.pdf
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria
What is an eligible area?

Check eligible addresses for the loan guarantees.

How may funds be used?

Funds backed by loan guarantees can be used for:
  • New or existing residential property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

Your Next Steps

The following information will lead you to the next steps to apply for this program.

Application Process

How do we get started?
Applicants must contact an approved lender. Applicants can review a partial list of approved lenders and information about all of the approved lenders in your state can be obtained by contacting your state's Guaranteed Loan Coordinator.

Who can answer questions?
Applicants with questions should contact an approved lender. Lenders with questions can contact a Guaranteed Loan Specialist in your state.

Approved Lenders: http://www.rd.usda.gov/files/SFHGLDApprovedLenders.pdf

Guaranteed Loan Coordinators

Program Contact Information

Tedd Buelow
Native American Coordinator
Tedd.Buelow@usda.gov
720-544-2911
http://www.rd.usda.gov/

Additional Information

Length of ProgramAnnual Appropriation
Tribes Funded by this ProgramNo limits on American Indian and Alaska Native tribes or tribal organizations receiving funding
Number of People Served by this Program (Approximate)134,255 Families Served in Fiscal Year 2015
Current Method of Tribal EligibilityProgram not specific to American Indians and Alaska Natives, but they are eligible
Recurring Base Funding for TribesNo
Funding TypeDiscretionary
Catalog of Federal Domestic Assistance (CFDA) Number10.41
Matching Funds RequiredNo
Can the funding from the program be renewedNo

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