Single Family Housing Guaranteed Loan Program in Minnesota

PROGRAM STATUS: Open


Single Family Housing Guaranteed Loan Program Integration Update - Minnesota

Effective January 19th, 2020, the Single Family Housing Guaranteed Loan Program (SFHGLP) loan processing and activity for Minnesota will be transferred into the SFHGLP Origination and Processing Division (OPD) as part of the Wave 2 implementation of the new integrated model.

Below, please reference the communication sent by USDA Rural Development on 1/16/20. If you did not receive this communication, please ensure you are signed up for the National GovDelivery Distribution List using this link and reference the guidance below.

 

SFH Guaranteed Origination

January 16, 2020

Single Family Housing Guaranteed Loan Program (SFHGLP) Integration Update: Wave 2 Effective January 19th

As previously communicated on November 27th, we are transitioning the Single Family Housing Guaranteed Loan Program (SFHGLP) to an integrated, National model. Effective January 19th, 2020, the SFHGLP loan processing and activity for the following states will be transferred into the SFHGLP Origination and Processing Division (OPD) as part of the Wave 2 implementation of the new integrated model:

Wave 2 States (January 19th, 2020)*

AK, AR, CO, FL, GA, IA, ID, IL, KY, MN, MO, MT, NV, PR, SC, TN, TX

*States included in each wave are based on the property location for loan files submitted, not lender location

 Please note that in previous communications MI and WA were included in Wave 2. To better manage application volume, loan volume from MI and WA will now be integrated in Wave 3 (projected February 16th, 2020).


Please refer to the below guidance and contact information for loan files in Wave 2 states.

Guidance for Loan Submissions

Files in Process: For loan files in Wave 2 states (listed above), all files received and reviewed by state staff prior to January 19th, 2020 will be completed by state staff.

New Submissions: You can continue to use GUS as you have in the past; this integration will have no impact on your access to USDA systems. For loan files in Wave 2 states (listed above), manual file submissions should be sent to the assigned Production Team (see below).

Contact Information

Customer service remains a top priority in the new model. Effective January 19th, 2020, all Wave 1 and 2 states will be aligned to one of four production teams, and each production team will have their own email inbox, shown below:

Team

Wave 1 and 2 States

Email Inbox

Team One

AK, AZ, CO, HI, IA, ID, KS, MT, NM, NV, OR, SD, TX, WP, WY

SFHGLPONE@usda.gov

Team Two

AR, KY, LA, MN, MO, NE, NY

SFHGLPTWO@usda.gov

Team Three

DE, GA, IL, MD, ME, NH, SC, VT

SFHGLPTHREE@usda.gov

 

Team Four

FL, PA, PR, TN, VA, VI

 

SFHGLPFOUR@usda.gov

Beginning January 19th, 2020, lenders with file-specific questions for loans in the above states should reach out to the respective production team inbox. For example, if you had a question regarding a guaranteed loan application in Minnesota, you would email SFHGLPTWO@usda.gov to contact Team Two.

If you have a question about a specific loan file, please include the following information:

  • Identify the state the application is located;
  • Provide applicant’s name, if applicable;
  • Include your contact information; and
  • Indicate if you want a call back (otherwise you will receive an email reply)

For all other inquiries not related to a specific file, please contact sfhgld.program@usda.gov.


Future Wave 3 Details

Remaining states will be integrated in Wave 3 (projected February 16th, 2020). Until states are integrated into the new unit, lenders should continue to contact their state office staff.

Wave 3 States (Future – February 16th, 2020)*

Team One

AL, CA, UT, WA, WI

Team Two

MS, ND, NJ, OK

Team Three

CT, MA, MI, NC, RI, WV

Team Four

IN, OH

*States included in each wave are based on the property location for loan files submitted, not lender location


Additional Information

  1. Infographic: Please reference the SFHGLP Integration Infographic for additional information: https://www.rd.usda.gov/files/RD-GRH-IntegrationInfo.pdf
  2. Handbooks: The Guaranteed Loan Program regulation (7 CFR 3555) and technical handbook (HB-1-3555) are available online to assist you with questions:
  1. Technical Issues: If you are experiencing technical issues with the Guaranteed Underwriting System (GUS), e-Authentication passwords, GUS User roles, etc., you may contact the Rural Development Help Desk at 1-800-457-3642, select option 2, and then select option 2 again.
  2. Please Note: The SFHGLP Integration does not impact servicing (loss claims and electronic status reporting), Help Desk, access to USDA systems, or e-Authentication protocols.

 

 

Help Resources

USDA ITS Service Desk Support Center

For e-Authentication assistance

Email: eAuthHelpDesk@ftc.usda.gov

Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)

 

Rural Development Help Desk

For GUS system, outage or functionality assistance

Email: RD.HD@STL.USDA.GOV

 

Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)

View the most current list of Minnesota approved lenders.

What does this program do? 

The Section 502 Guaranteed Loan 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 purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. 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 – so no money down for those who qualify!

Who may apply for this program?
Applicants must:

  • Meet income-eligibility (cannot exceed 115% of median household income)
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien

What is an eligible rural area?
Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. 

Why does Rural Development do this?

This program helps lenders work with low- and moderate-income households 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. 

How do I apply?

Interested applicants can apply for a Section 502 Guaranteed Loan through USDA Rural Development’s network of approved lenders. 

Please view the list of nationally approved lenders.  However, this list is not inclusive of all our approved lenders.  We also have many state-based lenders approved to participate in our program.  We encourage you to contact your preferred lender and ask if they are an approved lender with USDA Rural Development. 

**Important** USDA Rural Development does not endorse any specific private sector lenders. We encourage you to comparison shop between lenders to find the best service and financial options available.  The approved lender you select will handle the entire loan application process, working with Rural Development staff to ensure your loan is guaranteed through the agency.

Current Borrowers

 Need to refinance your USDA Home Loan? Learn more!

What governs this program?

  • 7 CFR, Part 3555   - This part sets forth policies for the Single-Family Housing Guaranteed Loan Program (SFHGLP) administered by USDA Rural Development. It addresses the requirements of section 502(h) of the Housing Act of 1949, as amended, and includes policies regarding originating, servicing, holding and liquidating SFHGLP loans. 
  • HB-1-3555 - SFH Guaranteed Loan Program Technical Handbook.  This handbook provides Agency staff and lenders participating in the Single-Family Housing Guaranteed Loan Program with the tools needed to originate, underwrite, and service guaranteed loans efficiently and effectively. 
     

How may funds be used?
USDA Section 502 Guaranteed Loan funds may be used for:

  • New or existing residential property to be used as a permanent residence. Structures can be detached, attached, Condos, PUDs, Modular, or Manufactured. (Cannot be an income-producing property). Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling. No set acreage limits. 
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans – for existing USDA borrowers only
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment if the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

What are the credit requirements? 
The program has no credit score requirements, but applicants are expected to demonstrate a willingness and ability to handle and manage debt. 

What are the rates?
Interest rates vary and are determined by individual lenders.  We encourage you to comparison shop between lenders to find the best available option.

What are the terms?
USDA Section 502 Guaranteed Loans are offered at a 30year fixed rate only.
 

There are currently no events scheduled.

 

View the most current list of approved lenders in Minnesota.