Program 101

as of Friday, October 9, 2015

We are processing Conditional Commitments for applications received on: 10-08-2015

We are processing Loan Note Guarantee closing packets received on: 10-05-2015

As happens at the beginning of each fiscal year, funding for the Single Family Housing Guaranteed Loan Program (SFHGLP) will not be available for a short period of time at the beginning of Fiscal Year 2016 (FY 2016), which starts October 1, 2015. During the temporary lapse of funding, Rural Development will issue Conditional Commitments “subject to the availability of commitment authority” for purchase and refinance transactions. An upfront guarantee fee of 2.75 percent accompanied by an annual fee of 0.5 percent will apply to both purchase and refinance transactions in FY 2016.” 

Fact Sheet

Program Status: Open

What does this 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. 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.

Who may apply for this program?
Applicants must:

  • 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 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 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

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.

What governs this program?

Why does USDA Rural Development do this?
This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

Forms & Resources

Interested applicants are encouraged to contact their local mortgage lenders to inquire about applying for the guaranteed loan. USDA does not endorse any specific private sector lenders. This list of Nationally Approved Lenders is not inclusive of all participating lenders.

Income limits (pdf) are dependent upon location of the home, and the number of persons residing in the home.

NOTE: Please ensure to that your state is selected in the dropdown menu above to contact a Guaranteed Loan Coordinator in your state for more information.



Guaranteed Coordination Team
Higginsville Service Center
120 West 19th Street, Suite 102
Higginsville, MO 64037-1509
TEL: (660) 584-8732, Ext. 4

For questions, email the Lender Questions Team

For non-GUS (manually underwritten files) submissions, email the required documents to

View all USDA Rural Development Missouri contacts