Program 101

Program Status: Open
Program FactsheetPDF

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?
To apply for this program, please contact a local mortgage lender.  Applications must be submitted through an approved lender.  If you are unable to find a participating lender, your state’s Guaranteed Loan Coordinator can help you find one.

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

Iowa Guaranteed Rural Housing Team - General Contacts

rd-grhia@ia.usda.gov

ph: (515) 284-4667

Income Limits

https://www.rd.usda.gov/files/IA_hp_rhsguar_Income_Limits_061418.pdf

Origination Stacking Checklist

http://www.rd.usda.gov/files/IA_hp_Att_15A_Origination_Stacking_Checklist_FILLABLE_050616.pdf

GUS Technical Bulletin - Revised June 2015

http://www.rd.usda.gov/files/IA_hp_Technical_Bulletin_0615.pdf

Refinance Programs - Borrowers and Lenders - July 2016

Non-Streamlined

http://www.rd.usda.gov/files/IA_hp_rhsguar_Refi_NonStreamlined_071316.pdf

Streamlined

http://www.rd.usda.gov/files/IA_hp_rhsguar_Refi_Streamlined_071316.pdf

Streamlined Assist

http://www.rd.usda.gov/files/IA_hp_rhsguar_Refi_Streamlined_Assist_071316.pdf

 

Lender Newsletters

June 2018

https://www.rd.usda.gov/files/IA_hp_rhsgianews-06-2018.pdf

March 2018

https://www.rd.usda.gov/files/IA_hp_rhsgianews-03-2018.pdf

December 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-12-2017.pdf

September 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-09-2017.pdf

July 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-07-2017.pdf

June 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-06-2017.pdf

May 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-05-2017.pdf

April 2017

https://www.rd.usda.gov/files/IA_hp_rhsgianews-04-2017.pdf

March 2017

http://www.rd.usda.gov/files/IA_hp_rhsgianews-03-2017.pdf

November 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-11-2016.pdf

October 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-10-2016.pdf

September 15, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-09-2016-2.pdf

September 1, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-09-2016.pdf

July 14, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-07-2016-2.pdf

July 5, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-07-2016.pdf

May 31, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-05-2016-3.pdf

May 17, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-05-2016-2.pdf

May 5, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-05-2016.pdf

April 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-04-2016.pdf

March 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-03-2016.pdf

February 22, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-02-2016-3.pdf

February 18, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-02-2016-2.pdf

February 8, 2016

http://www.rd.usda.gov/files/IA_hp_rhsgianews-02-2016.pdf

October 2015

http://www.rd.usda.gov/files/IA_hp_rhsgianews-10-2015.pdf

September 24, 2015

http://www.rd.usda.gov/files/IA_hp_rhsgianews-09-2015.pdf

September 17, 2015

http://www.rd.usda.gov/files/IA_hp_rhsgianews-09-2015-2.pdf

June 2015

http://www.rd.usda.gov/files/IA_hp_rhsgianews-06-2015.pdf

January 2015

http://www.rd.usda.gov/files/IA_hp_rhsgianews-01-2015_rev.pdf

 

 

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 your state is selected in the dropdown menu above to contact a Guaranteed Loan Coordinator in your state for more information.

Current Borrowers:

USDA Rural Development does not directly offer workout plans to distressed homeowners in the Single Family Housing Guaranteed Loan Program as USDA is not a financial lending institution.  We urge any customer with a guaranteed loan seeking assistance to contact their mortgage servicing lender immediately to determine their eligibility for potential work out options.  Examples of work out options include but are not limited to:  Informal Forbearance, Special Forbearance, Loan Modification, Special Loan Servicing and Pre-Foreclosure Sale.  The customer service number for the servicing lender is typically included with the mortgage statement or at their online internet address.

Need to refinance your USDA Home Loan? Learn more about this option.

Lenders:

Contacts

Mary Beth Juergens

Housing Programs Director in Iowa

ph: 515-284-4667

rd-grhia@ia.usda.gov