USDA Rural Development has announced its Top 10 approved lenders in loan activity for its Guaranteed Rural Housing (GRH) loan program in Nebraska for Fiscal Year 2016 and its $3 million Club Lender.
In Fiscal Year 2016, 79 approved lenders participated in the GRH program and provided more than $97 million to assist 948 rural Nebraskans to “build communities together” through homeownership according to Nebraska State Director Maxine Moul for USDA Rural Development.
For the sixth straight year, Charter West National Bank is the top lender. The bank generated 108 loans, totaling $11,601,692. In addition to first time home-buyers, existing guaranteed or direct loan borrowers may refinance their home loans under the GRH loan program. This provides a borrower with an opportunity to obtain a possible lower interest rate.
Top 10 Lenders are:
--Charter West National Bank-108 loans-$11,601,692
--Platte Valley Bank-87 loans-$8,423,361
--Pinnacle Bank-70 loans-$7,771,478
--Farmers & Merchants Bank-Kearney-38 loans-$4,032,835
--First National Bank of Omaha-36 loans-$3,491,619
--West Gate Bank-35 loans-$3,189,937
--Midwest Bank N.A.-34 loans-$3,258,710
--FlagStar Bank-29 loans-$2,666,824
--FirstBank of Nebraska-27 loans-$2,615,734
--Cornerstone Bank-27 loans-$2,207,179
In addition to the Top 10 Lenders by the number of loans, Liberty First Credit Union is this year’s $3 Million Club Lender through the GRH Program in Nebraska.
Lenders were recognized by Rural Development with a plaque acknowledging their activity in the GRH program.
The GRH program is a federal program that is budget neutral. The program does not rely on taxpayer dollars to fund the program and is self-supporting through the fees generated through the loans.
Fiscal Year 2017 should be a strong year as well. Moul said, "The guaranteed rural housing loan program is very solid. Year after year we have assisted many individuals and families with the purchase of a home in rural Nebraska. I encourage approved lenders to continue to use this program, helping even more Nebraskans to achieve homeownership."
Through the GRH program, loan funds are provided by private lending institutions and guaranteed by the federal government. The program features no down payment to eligible income households and no maximum mortgage limits. Homes must be located in rural areas. All communities in Nebraska are eligible for USDA Rural Development housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha and South Sioux City/Dakota City. See http://eligibility.sc.egov.usda.gov/eligibility/ for eligible areas and program income limits. GRH loans have been processed in 71 out of the 93 counties throughout Nebraska.
Effective October 1, 2016, USDA Rural Development fees for mortgage loans originated for the Guarantee Rural Housing Program (GRH) were reduced from 2.75% upfront fee down to a 1% fee. The monthly mortgage insurance premium was also reduced from .50% to .35%. The reduced fees are among the lowest fees offered for federal mortgage loan products that offer low down payments. For example, the Federal Housing Administration (FHA) Program has an upfront fee of 1.75% and monthly mortgage premium of .85%.
For additional information on becoming an approved lender, contact Krista Mettscher at (402) 437-5518 or krista.mettscher@ne.usda.gov. Visit http://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program/ne.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.