Single Family Housing Guaranteed Loan Program is sponsored by USDA Rural Development. This program assists moderate-income households in purchasing or building homes in eligible rural areas with no money down. It offers 30-year fixed rates and refinancing options.

Loans are obtained through active lenders.

Program Application Period: * **Lender Information**: SFH Guaranteed Lender Page * **Annual Lender Ranking:**Annual Lender Rankings **What does this program do? ** The Section 502 Guaranteed Loan 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.

Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify! **Who may apply for this program?

** * Meet income-eligibility (cannot exceed 115% of median household income) * Agree to personally occupy the dwelling as their primary residence * Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien **What is an eligible rural area? ** Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. **Why does Rural Development do this?

** This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas. Interested applicants can apply for a Section 502 Guaranteed Loan through USDA Rural Development’s network of approved lenders.

These approved lenders are also your point of contact for any questions or scenarios you wish to have reviewed for possible eligibility. This list ofactive lenders is searchable by state and every effort is made by the SFHGLP team to keep this up to date. If you are seeking a Single Close Construction-to-Permanent Loan, this list contains current participating lenders for that program.

****Important**** USDA Rural Development does not endorse any specific private sector lenders. We encourage you to comparison shop between lenders to find the best service and financial options available. The approved lender you select will handle the entire loan application process, working with Rural Development staff to ensure your loan is guaranteed through the agency.

Considering _**refinancing**_ your USDA home loan? You can easily compare your options at a glance with our Refinance Matrix. For additional details or to apply, reach out to one of our active lenders today!

**What governs this program? ** * 7 CFR, Part 3555 - This part sets forth policies for the Single-Family Housing Guaranteed Loan Program (SFHGLP) administered by USDA Rural Development. It addresses the requirements of section 502(h) of the Housing Act of 1949, as amended, and includes policies regarding originating, servicing, holding and liquidating SFHGLP loans.

* HB-1-3555 - SFH Guaranteed Loan Program Technical Handbook. This handbook provides Agency staff and lenders participating in the Single-Family Housing Guaranteed Loan Program with the tools needed to originate, underwrite, and service guaranteed loans efficiently and effectively. **How may funds be used?

** USDA Section 502 Guaranteed Loan funds may be used for: * New or existing residential property to be used as a permanent residence. Structures can be detached, attached, Condos, PUDs, Modular, or Manufactured. (Cannot be an income-producing property).

Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction * A site with a new or existing dwelling. No set acreage limits.

* Repairs and rehabilitation when associated with the purchase of an existing dwelling * Refinancing of eligible loans – for existing USDA borrowers only * Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment if the equipment is conveyed with the dwelling * Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways **What are the credit requirements?

** The program has no credit score requirements, but applicants are expected to demonstrate a willingness and ability to handle and manage debt. Interest rates vary and are determined by individual lenders. We encourage you to comparison shop between lenders to find the best available option.

USDA Section 502 Guaranteed Loans are offered at a 30year fixed rate only.