www.rurdev.usda.gov/pa Thomas P Williams, State Director

USDA RURAL DEVELOPMENTSINGLE FAMILY HOUSING INFORMATION SESSION

Mission Statement: “Enhance the ability of rural communities to develop, to grow, and to improve their quality of life by

targeting financial and technical resources in areas of greatest need through activities of greatest potential.”

RURAL DEVELOPMENT SINGLE FAMILY HOUSING PROGRAM INFORMATION

SESSION

Topics that will be covered: 502 Direct Loan Program 504 Home Repair Program 502 Guaranteed Loan Program

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502 DIRECT LOAN PROGRAM

Purpose: To provide low-income individuals or households the opportunity to buy or build a decent, safe, and sanitary dwelling.

100% financing based on appraised value

** 1% subsidized interest rate **

Only one time $25.00 credit fee• No mortgage insurance, funding fee,

organization fee or administration fee

No score required Credit score of 640+ =fast track

(If no bankruptcy, foreclosure, federal unsatisfied judgments or liens)

CREDIT

How to Apply : 1st Step

LOAN APPLICATION PACKAGERS

A loan application packager, who has real estate and/or mortgage experience, may submit a complete loan application package on behalf of an applicant.

Only a non-profit or public entity is eligible to receive a packaging fee for service.

504 HOME REPAIR LOANS AND GRANTS

PURPOSE: TO PROVIDE LOANS TO HOMEOWNERS TO REPAIR, IMPROVE, OR MODERNIZE THEIR HOMES OR PROVIDE GRANTS TO ELDERLY VERY-LOW INCOME HOMEOWNERS TO REMOVE HEALTH AND SAFETY HAZARDS.

504 HOME REPAIR LOANS AND GRANTS

Purpose: • To provide assistance to very low income (50% of median income)

owners of modest single-family homes in eligible rural areas.

Loans• for repairs to improve or modernize a home.• make it safer or more sanitary, or remove health and safety issues.• pay connection fees for public water and/or sewer.• 1% interest rate, 20 years, maximum outstanding balance of $20,000.

Grants• For homeowners 62 and over who cannot repay a loan, grant funds are

available to remove health or safety hazards, or remodel dwellings to make them accessible to household members with disabilities.

• $7,500 maximum lifetime grant.

(504) GUARANTEED LOAN PROGRAM

Purpose:

To assist low and moderate income (115% of median income) applicants to purchase new or existing homes. This is made possible by the guarantee of loans made by conventional lenders.

Homebuyers make application directly with the participating lender.

Pennsylvania’s GRH Program consistently has one of the FASTED

turn times in the industry!

Average 2-3 business day turn time!!

MAJOR ADVANTAGES• Partner with private sector lenders

• Can combine GRH with PHFA• Not limited to 1st time home buyers• No cap on purchase price• 102.75% pf appraised value can include repairs and rehab• Reasonable allowances for applicants with less than 12 months

at current employer• (Ex: Remains in the same line of work, recent graduate or member of

the military, re-entering the workforce after an absence to care of a family member, medical illness or other reasonable circumstance)

• Non-Taxable Income (child support, social security, etc.) can be grossed up 125% for repayment income purposes

• Deferred/Non-Fixed Payment Student Loans- Use only 1% of the outstanding loan balance

GUARANTEED RURAL HOUSING LOAN PROGRAM

Eligible Loan Purposes:• Purchase a new or existing single-family dwelling.• Refinance existing GRH loans• New construction must comply with applicable building codes.• Must meet property standards of HUD Handbook 4000.1• Home must be located in an eligible area.

Maximum Loan Amounts:• Applicant’s income and repayment ability will dictate the maximum

loan amount.• No county loan limit.• Loan amount cannot exceed the appraised value of the property.• Closing costs, guarantee fee, legal fees, title services, costs of

establishing an escrow account, and other prepaid items may be included as long as the total loan does not exceed the appraised value.

Loans may be for up to 100% of the appraised value plus guaranteed fee .

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GUARANTEED RURAL HOUSING LOAN PROGRAM

Loan Rates and Terms:30 year term.Fixed interest rate set by approved lender Rate can not be higher than the 30 year, 90 day actual / actual Fannie Mae rate plus 100 basis

points.

Fees:A one time Guarantee Fee of 2.75% of loan amount and .5% of average

annual balance charged to the lender. (may be passed on to the applicant and may be financed)

Mortgage insurance is not required.There is no limit on seller contribution to closing costs unless set by

the lender.

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2014 ACCOMPLISHMENTS

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South Central Pennsylvania

GENERAL INFORMATION

All funding has been received from the CR.

Eligibility areas remain based upon 2010 census. Guaranteed program is centralized in RD State Office.

Lenders send application packages to general mail box (pagrh@pa.usda.gov) 502 Program centralized.

Applications returned to RD State Office for review, then sent to specialists in area offices for processing.

Income and property eligibility site:http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1

Rural Development, PA website:www.rd.usda.gov/pa

CONTACT INFORMATION

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RD PA State Office Housing Line: (717) 237-2186

Chester.Pogorzelski@pa.usda.gov (717) 237-2277

David.Corwin@pa.usda.gov (717) 237-2279