Single Family Housing Information

1. Single Family Housing
502 Programs
Presented by Rob Wilson and Jeanie Barbrow

2. To create economic opportunity and improve the quality of life for all rural Americans.
Our Mission

3. 2015 Investments
$1,006,687,304
via 4,547 loans & grants
Community Facilities
$11,335,400
Rural Utilities
$293,127,858
Rural Business
$24,402,335
Rural Housing
$677,821,711

4. 2015 Investments
Rural Housing by Area
Area 1
$88,368,756
Area 2
$110,215,932
Area 4
$110,634,932
Area 3
$331,060,176

5. 2015 Single Family Housing
113low and very low income families
purchased homes with low interest rates
in 2015 Utilizing the Direct Loan. Program
3858low and moderate income families
purchased homes utilizing the
Guaranteed Loan Program
Home Repair
Loans & Grants
$1,115,908
Guaranteed Home Loans
$626,215,261
Direct Home Loans
$14,267,347
$641,598,516
via 4,140 loans & grants

6. Single Family Housing Guaranteed Program

7. What does the Program do?
• This 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.
Who may apply for this program?
Single Family Housing Guaranteed Program
• Meet income eligibility
• Agree to personally occupy the dwelling as their primary
residence
• Be a U.S. Citizen, U.S. non-citizen national or Qualified
Alien
• Have the legal capacity to incur the loan obligation
• Have not been suspended or debarred from participation
in federal programs
• Demonstrate the willingness to meet credit
obligations in a timely manner
• Purchase a property in an eligible area and meet all
program criteria

8. What is an eligible area?
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@
11
How may funds be used?
• To purchase new or existing homes and refinance existing Rural Development guaranteed or
direct loans. Previously occupied manufactured dwellings cannot be financed unless they are
currently financed by RD.
Single Family Housing Guaranteed Program

9. How do we get started?
• Applicants must contact an approved lender.
• Applicants can review a partial list of approved lenders and information about all of the approved
lenders in your state which can be obtained by contacting your state’s Guaranteed Loan
Coordinator
• List of approved lenders: http://www.rd.usda.gov/files/SFHGLDApprovedLenders.pdf
Single Family Housing Guaranteed Program

10. Forms and resources:
• HB-1-3555 Guaranteed Loan Program Technical Handbook
• List of Nationally Approved Lenders
• Income Limits
• Guaranteed Loan Coordinator by State
• USDA Service Center Agencies E-forms
• Lender Interactive Network Connection (LINC)
• Frequently Asked Questions about the Handbook
• Fannie Mae’s 30 Year Fixed Interest Rate
• Guaranteed Lenders E-Newsletter
Single Family Housing Guaranteed Program

11. Process Walkthrough:
• Applicant chooses an approved lender. (Approved lender list is on our web site under SFH GRH Program.)
Lender will process the application through approval. Once approved lender will submit the file to RD to
review.
• Once RD receives the file it is assigned to a specialist. The specialist will review the file for completeness.
(RD does not re-underwrite the file) We review the file to make sure it has been underwritten per
guidelines and system findings. If clarification or changes are needed, the specialist working the file will
contact the lender. Once the file is reviewed and approved by RD, we will issue the lender the Conditional
Commitment. (This is done within 48 business hours of receiving a complete file) The lender can now close
the loan according to the Conditional Commitment.
• Once the loan is closed, the lender will request the “Guarantee”. The lender is protected up to 90% of the
loan amount in case of default on the borrowers side.
Single Family Housing Guaranteed Program

12. Contact Information:
Robert Wilson
Phone: (540)463-7124 ext.117
Fax: (855)592-3188
Robert.wilson@va.usda.gov
Single Family Housing Guaranteed Program

13. Single Family Housing Direct Program

14. What does the program do?
• Assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible
rural areas by providing payment assistance to enhance an applicant’s repayment ability.
Payment assistance is a type of subsidy that reduces the mortgage payment for as long as the
borrower remains eligible. The amount of assistance is determined by the adjusted family
income.
Applicants must:
Single Family Housing Direct Program
• Be low or very low income
• Have a satisfactory credit history
• Have sufficient income to pay house payments, taxes,
insurance and necessary living expenses
• Be without decent, safe and sanitary housing
• Be unable to obtain a loan from other resources on terms
and conditions that can reasonably be expected to meet
• Agree to occupy the property as your primary
residence
• Have the legal capacity to incur a loan obligation
• Meet citizenship or eligible noncitizen requirements
• Not be suspended or debarred from participation in
federal programs

15. Properties financed must have existing or new construction
• Generally be 2,000 square feet or less
• Not have market value in excess of the applicable area loan limit
• Not have in-ground swimming pools
• Not be designed for income producing activities
What is an eligible area?
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Single Family Housing Direct Program

16. How may funds be used?
• Loan funds may be used to help low-income and very low-income individuals or households
purchase or build homes in rural areas. Funds can be used to build, repair, renovate or relocate a
home, or to purchase and prepare sites, including providing water and sewage facilities.
How much may I borrow?
• The maximum loan amount an applicant may qualify for will depend on the applicant’s
repayment ability.
Single Family Housing Direct Program

17. What is the interest rate and payback period?
• Fixed interest rate based on current market rates at loan approval or loan closing, whichever is
lower
• Interest rate when modified by payment assistance, can be as low as 1%
• Up to 33 year payback period - 38 year payback period for very low income applicants whose
income does not exceed 60 percent of the area median income.
Single Family Housing Direct Program

18. Additional Information:
• Loan up to 100 percent of the appraised value
• NO down payment is typically required but you may be responsible for all or part of your closing
fees
• Applications are accepted YEAR-ROUND
• Processing time GOAL: 90 days
Single Family Housing Direct Program

19. Forms and resources:
• USDA-RD/FSA Resales Website
• RD-FactSheet-RHS-SFH502Direct
• Income Limits
• Area Loan Limits
• Eligibility Site
Single Family Housing Direct Program

20. Process Walkthrough:
• External Steps
• Complete a Pre-Qual Package (not required). Applicant will be advised of eligibility based on unverified
information. An infile credit report will be obtained (no cost to applicant)
• Provide RD with a complete Application Package and $25.00 nonrefundable credit report fee. Once
eligibility has been determined, applicant will find the perfect home to purchase or the perfect lot to
build a home. Rural Development will finance the lot and construction.
• RD Steps
• RD will review the information. Obtain a Tri Merge Credit Report, determine eligibility and provide the
applicant with a Certificate of Eligibility. This will advise the applicant how much they are eligible to
borrower. RD will provide information regarding the additional information needed regarding the
property being purchased. Once the property information is obtained a Home Inspection and Appraisal
will be obtained.
• Closing will be scheduled with a Title Company or Loan Closing Agent.
Single Family Housing Direct Program

21. Contact Information:
Jeanie Barbrow
Work: (276) 228-3513 ext.121
Cell: (804) 517-7815
Fax: (855) 636-4613
Jeanie.Barbrow@va.usda.gov
Single Family Housing Direct Program

22. Don’t forget to complete your survey!

23. USDA Rural Development
Single Family Housing Programs
www.rd.usda.gov/va
USDA is an equal opportunity provider, employer, and lender.