Single Family Housing Guaranteed Loan Program in Virginia

PROGRAM STATUS: Open


IMPORTANT NOTICE --   New Contact Information for the single Family Housing Guaranteed Loan Program!                                                               

   New Email address for all GRH program needs:   Sfhg-apu@rd.usda.gov

Beginning October 1, 2018, GRH program files will no longer be reviewed by  our Virginia Staff.  A newly established National Office team, comprised of specialists from around the country, will review and issue Conditional Commitments and process Loan Note Guarantees.  The process of reviewing files and the rules for doing so will not alter in any way, and this team is expected to fully maintain 48 hours turn times on complete files.  This should have no effect on how Lenders do business and infect is expected to improve processing times over the course of the year and maintain better consistency in interpretation and application of our rules and regulations. 

With this adjustment, there is also a change of email address for contact with the processing team and to run questions and scenarios: sfhg-apu@rd.usda.gov

 

Questions regarding technical issues:   Rural Development Help Desk phone number is:   1-800-457-3642

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.

New Email address for all GRH program needs:    Sfhg-apu@rd.usda.gov