Benefits of the USDA Guaranteed Rural Housing Program:

In order to be eligible for a Rural Development guaranteed loan, the Borrowers’ adjustable household income cannot exceed the maximum allowable income limit set forth in Rural Development Instruction 1980-D §1980.348, Exhibit C (use moderate-income limits).

• 102% Financing based on appraised value, if appraised value exceeds sales price, borrower can finance closing costs
• No monthly mortgage insurance, 1-time guarantee fee of 2% that you finance into the loan.
• No asset requirements.
• Unlimited seller concessions and 100% gifting is allowed - Your borrower can purchase a home with no money of their own into the transaction.
• Geographic and income restrictions apply, please use the following link to determine property and income eligibility: http://eligibility.sc.egov.usda.gov
• Provides 100% loan-to-value financing for existing homes or new construction based on appraised value.
• Available to low and moderate-income rural households.
• No requirement to be a "first-time" home buyer.
• Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.
• No monthly mortgage insurance required. One-time guarantee fee, payable to Rural Development (RD) at closing, which may be financed above the appraised value, as follows:
  • Purchases - 2.00% of loan amount
  • Refinances - .50% of loan amount
• Fully amortized 30-year fixed-rate loans.
• No penalty for pre-payment.
• No maximum loan limit. Loan limits are dictated by the applicant's income with respect to program eligibility and loan repayment ability. Previous ties to FHA loan limits have been eliminated.
• The Program may not be used to refinance FHA, VA, or other government or conventional mortgages.

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