Rural Development Housing & Community Facilities Programs
Rural Development Housing & Community Facilities Programs
GREAT NEWS!!! Rural Development is going to be restructuring their income limits.
**Please note that this will probably not take effect until the beginning of February, this is per Rural Development, as it has to be approved by government.**
“The Single-Family Housing Program provides homeownership opportunities to low and moderate-income rural Americans through several loan, grant, and guarantee programs. The program also makes funding available to individuals to finance vital improvements necessary to make their homes decent, safe, and sanitary.”
Direct Loan Program: Individuals or families receive direct financial assistance directly from the Housing and Community Facilities Programs (HCFP) in the form of a home loan at an affordable interest rate
§ The direct loan program is for families who make 80% less than the medium income level in their current communities
§ Since these people would not normally be able to qualify for a conventional loan, the HCFP enables more people to live their dream of homeownership
§ These loans can be applied toward the purchase of an existing home or a new construction home.
Loan Guarantee Program:
“Under the Guaranteed Loan program, the Housing and Community Facilities Programs guarantees loans made by private sector lenders. (A loan guarantee through HCFP means that, should the individual borrower default on the loan, HCFP will pay the private financier for the loan.) The individual works with the private lender and makes his or her payments to that lender.”
“Under the terms of the program, an individual or family may borrow up to 100% of the appraised value of the home, which eliminates the need for a down payment. Since a common barrier to owning a home for many low-income people is the lack of funds to make a down payment, the availability of the loan guarantees from HCFP makes the reality of owning a home available to a much larger percentage of Americans.”
Mutual Self-Help Housing Program: Makes homes affordable by allowing the future homeowner to do the work on the house themselves. Not only does this create personal investment in the home, the homeowner is also paying less for the home by not having an outside party complete the work.
§ “Technical Assistance Grants and Site Loans are provided to nonprofit and local government organizations, which supervise groups of 5 to 12 enrollees in the Self-Help Program. Members of each group help work on each other's homes, moving in only when all the homes are completed.”
Home Repair Loan & Grant Program: Designed for low income families who own homes and are in need of necessary renovations
§ “Homeowners 62 years and older are eligible for home improvement grants. Other low income families and individuals receive loans at a 1% interest rate directly from HCFP.”
Information Taken From:
Rural Development Housing & Communities Facilities Program:
http://www.rurdev.usda.gov/rhs/sfh/indiv_sfh.htm#Direct%20Loan%20Program%20(Section
On The Financial Side:
The new structure will only have 2 tiers of income limits:
§ 1-4 person household will use the income limits of a 4 person household.
For example: In Leon County a 1 person household income limit is $50,000, that would be increased to $71,450.
§ 5-8 person household will use the income limits of an 8 person household.
For example: In Leon Co. a 5 person household income limit is $77,150, that would be increased to $94,300
This is great news because more buyers that will qualify for 100% financing, no MI, RD loan.
Information taken from:
KristenPhillips@PeoplesFirst.Com News Letter
Until Next Time!
Sarah B. Deeb
