Single Family Housing502 Programs

Presented by Rob Wilson and Jeanie Barbrow

To create economic opportunity and improve the quality of life for all rural Americans.

Our Mission

2015 Investments

$1,006,687,304

via 4,547 loans & grants

Community Facilities

$11,335,400

Rural Utilities

$293,127,858

Rural Business

$24,402,335

Rural Housing

$677,821,711

2015 Investments

Rural Housing by Area

Area 1$88,368,756

Area 2$110,215,932

Area 4$110,634,932

Area 3$331,060,176

2015 Single Family Housing

113 low and very low income families

purchased homes with low interest rates in 2015 Utilizing the Direct Loan.

Program

3858 low and moderate income families

purchased homes utilizing the Guaranteed Loan Program

Home Repair

Loans & Grants

$1,115,908

Guaranteed Home Loans

$626,215,261

Direct Home Loans

$14,267,347

$641,598,516

via 4,140 loans & grants

Single Family Housing Guaranteed Program

What does the Program do?

• 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.Who may apply for this program?

Single Family Housing Guaranteed Program

• Meet income eligibility • 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 in an eligible area and meet all program criteria

What is an eligible area? http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

How may funds be used?

• To purchase new or existing homes and refinance existing Rural Development guaranteed or

direct loans. Previously occupied manufactured dwellings cannot be financed unless they are

currently financed by RD.

Single Family Housing Guaranteed Program

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 which can be obtained by contacting your state’s Guaranteed Loan

Coordinator

• List of approved lenders: http://www.rd.usda.gov/files/SFHGLDApprovedLenders.pdf

Single Family Housing Guaranteed Program

Forms and resources:• HB-1-3555 Guaranteed Loan Program Technical Handbook

• List of Nationally Approved Lenders

• Income Limits

• Guaranteed Loan Coordinator by State

• USDA Service Center Agencies E-forms

• Lender Interactive Network Connection (LINC)

• Frequently Asked Questions about the Handbook

• Fannie Mae’s 30 Year Fixed Interest Rate

• Guaranteed Lenders E-Newsletter

Single Family Housing Guaranteed Program

Process Walkthrough: • Applicant chooses an approved lender. (Approved lender list is on our web site under SFH GRH Program.)

Lender will process the application through approval. Once approved lender will submit the file to RD to review.

• Once RD receives the file it is assigned to a specialist. The specialist will review the file for completeness. (RD does not re-underwrite the file) We review the file to make sure it has been underwritten per guidelines and system findings. If clarification or changes are needed, the specialist working the file will contact the lender. Once the file is reviewed and approved by RD, we will issue the lender the Conditional Commitment. (This is done within 48 business hours of receiving a complete file) The lender can now close the loan according to the Conditional Commitment.

• Once the loan is closed, the lender will request the “Guarantee”. The lender is protected up to 90% of the loan amount in case of default on the borrowers side.

Single Family Housing Guaranteed Program

Contact Information:

Robert Wilson Phone: (540)463-7124 ext.117 Fax: (855)592-3188 Robert.wilson@va.usda.gov

Single Family Housing Guaranteed Program

Single Family Housing Direct Program

What does the program do?• Assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible

rural areas by providing payment assistance to enhance an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for as long as the borrower remains eligible. The amount of assistance is determined by the adjusted family income.

Applicants must:

Single Family Housing Direct Program

• Be low or very low income• Have a satisfactory credit history• Have sufficient income to pay house payments, taxes,

insurance and necessary living expenses• Be without decent, safe and sanitary housing• Be unable to obtain a loan from other resources on terms

and conditions that can reasonably be expected to meet

• Agree to occupy the property as your primary residence

• Have the legal capacity to incur a loan obligation• Meet citizenship or eligible noncitizen requirements• Not be suspended or debarred from participation in

federal programs

Properties financed must have existing or new construction• Generally be 2,000 square feet or less• Not have market value in excess of the applicable area loan limit• Not have in-ground swimming pools• Not be designed for income producing activities

What is an eligible area?http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Single Family Housing Direct Program

How may funds be used?

• Loan funds may be used to help low-income and very low-income individuals or households

purchase or build homes in rural areas. Funds can be used to build, repair, renovate or relocate a

home, or to purchase and prepare sites, including providing water and sewage facilities.

How much may I borrow?

• The maximum loan amount an applicant may qualify for will depend on the applicant’s

repayment ability.

Single Family Housing Direct Program

What is the interest rate and payback period?• Fixed interest rate based on current market rates at loan approval or loan closing, whichever is

lower• Interest rate when modified by payment assistance, can be as low as 1%• Up to 33 year payback period - 38 year payback period for very low income applicants whose

income does not exceed 60 percent of the area median income.

Single Family Housing Direct Program

Additional Information:

• Loan up to 100 percent of the appraised value

• NO down payment is typically required but you may be responsible for all or part of your closing

fees

• Applications are accepted YEAR-ROUND

• Processing time GOAL: 90 days

Single Family Housing Direct Program

Forms and resources:• USDA-RD/FSA Resales Website

• RD-FactSheet-RHS-SFH502Direct

• Income Limits

• Area Loan Limits

• Eligibility Site

Single Family Housing Direct Program

Process Walkthrough:

• External Steps• Complete a Pre-Qual Package (not required). Applicant will be advised of eligibility based on unverified

information. An infile credit report will be obtained (no cost to applicant) • Provide RD with a complete Application Package and $25.00 nonrefundable credit report fee. Once

eligibility has been determined, applicant will find the perfect home to purchase or the perfect lot to build a home. Rural Development will finance the lot and construction.

• RD Steps• RD will review the information. Obtain a Tri Merge Credit Report, determine eligibility and provide the

applicant with a Certificate of Eligibility. This will advise the applicant how much they are eligible to borrower. RD will provide information regarding the additional information needed regarding the property being purchased. Once the property information is obtained a Home Inspection and Appraisal will be obtained.

• Closing will be scheduled with a Title Company or Loan Closing Agent.

Single Family Housing Direct Program

Contact Information:

Jeanie BarbrowWork: (276) 228-3513 ext.121Cell: (804) 517-7815 Fax: (855) 636-4613 Jeanie.Barbrow@va.usda.gov

Single Family Housing Direct Program

Don’t forget to complete your survey!

USDA Rural DevelopmentSingle Family Housing Programs

www.rd.usda.gov/va

USDA is an equal opportunity provider, employer, and lender.