Rural Housing Program

Rural Housing Program

To be eligible for the Rural Housing Program, a property must be located in a rural development-eligible area.

Rural Housing Program

Rural Development-eligible areas are: Areas with open country* Areas with populations of 10,000 or

less (10,000-25,000 population in certain areas)

http://eligibility.sc.egov.usda.gov

*no farms, no income producing properties. Land value of site cannot exceed 30% of total property value.

Rural Housing Program

First time home buyers

Rural Housing Program

No down payment required

No mortgage insurance requiredAbility to finance closing costs

Rural Housing Program

No reserve requirements

*Call your Loan Officer for details about specific borrower criteria.

No minimum FICO score*

Rural Housing Program

Income limits based on area (see http://eligibility.sc.egov.usda.gov )

Maximum loan amount is based on income (29%/41%)

Rural Housing Program

Total Loan to Value = 102%

Example:

Rural Housing Program

Gifts and grants ARE allowed from: Relative Friend Charitable organization or Non-profit organization

Rural Housing Program

No limits on how much a seller can contribute.

Rural Housing Program

Unsecured loan is allowable for closing costs and pre-paid items*.Loan can be from relative,

bank, credit union, even a credit card cash advance!

*Minimum credit score 660 for unsecured loan

Rural Housing Program

30 year fixed rate Borrower may not own any other

real estate Borrowers must be U.S. citizens

or permanent resident aliens

Rural Housing Program

No manufactured homes

No in-ground swimming pools

No construction draws

Rural Housing Program

Home counseling may be required in certain circumstances, if for example: there are no previous housing

expenses, or there is no established positive

credit that demonstrates ability to make timely mortgage payments

Examples of home counseling are Fannie Mae’s “Guide to Homeownership” program and comparable programs from non-profit organizations

Rural Housing Program

Requirements for your state’s Rural Development program

Income requirements: Definition of ‘rural’: States are currently considering making

the homeownership counseling mandatory for all first time home buyers. What is your state doing?

Complete this

informatio

n with

your s

tate’s require

ments:

Rural Housing Program

Thank you for your kind attention.