usda rural development grants & loans for non-profits homeownership home repair serve rural...
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USDA Rural Development
• Grants & loans for non-profits
• Homeownership
• Home Repair
• Serve rural areas
USDA Rural Development Mutual Self-Help Grants
• Public & private non-profit organizations
• Used to operate a mutual self-help program
• Covers admin expenses, necessary tools
• Up to 15% of cost of modest housing times the number of homes to be built
• Serve applicants up to 80% MHI
USDA Rural Development Technical & Supervisory Assistance
(TSA) Grants• Public & private non-profit organizations • Used to fund homeownership & financial
counseling and delivery of housing programs• Covers admin expenses• Serve applicants up to 80% MHI• Nationally competitive under a NOFA
USDA Rural Development Site Loans
• Public & private non-profit organizations
• Used to acquire and develop land
• Covers admin expenses
• Repaid from the sale of lots within 2 yrs
• Serve applicants up to 115% MHI
USDA Rural Development Home Ownership Programs
• Guaranteed Rural Housing (GRH) Loans: market interest rate made by local lenders
• Direct Loans: subsidized interest rate made by local USDA Rural Development Offices
• 100% LTV
Affordable• GRH loans are guaranteed by USDA Rural
Development eliminating the requirement for Private Mortgage Insurance
• Direct loans are subsidized to reduce the monthly payment
Flexible• Can include money for repairs
• Can be used for new construction
Income Limits
• Based on family size for the county of residence as a % of Median Household Income:– GRH – 115%– Direct – 80%
Repayment Ability• 29% PITI (Principal + Interest + RE Taxes
+ Insurance)
• 41% TD (Total Debt)
Credit History• If credit score is at least 660 and there are
no judgments, we don’t analyze credit history
• Credit issues may be waived if we determine:– Loan will reduce housing costs or– Circumstances were temporary, beyond
applicant’s control, and have been resolved
Loan Limits• Direct varies by county
($113,700 - $154,800)
• GRH limited by repayment ratios and income limits
Other Requirements• U. S. citizen or a qualified alien• Cannot already own an adequate home• Personally occupy the home• Unable to get a conventional loan (20% down)• Rural areas only
USDA Rural Development Repair Loans and Grants
• Used to make essential repairs
• Serve rural homeowners up to 50% MHI
• Grants limited to those 62 and older who cannot repay a loan
USDA Rural Development Repair Loans and Grants
• Maximum loan: $20,000 at 1%, 20 yrs
• Maximum grant: $7,500 lifetime
• Grant must be repaid if house sold within 3 years
Eligibility Web Site
• http://eligibility.sc.egov.usda.gov/eligibility/mainservlet
• Shows if a specific property is in an eligible area
• Maps of ineligible areas• Check income eligibility
Where to go for more information
• Contact local USDA Rural Development Office serving your area
• http://www.rurdev.usda.gov/in/
• (317) 290-3100 ext 558