Single Family Housing Guaranteed Loan Program

• Program 101

• Forms & Resources

What does this 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. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. 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.

Who may apply for this program?

Applicants must:

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 that meets all program criteria

How may funds be used?

Funds backed by loan guarantees be used for:

• New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction

• A site with a new or existing dwelling

• Repairs and rehabilitation when associated with the purchase of an existing dwelling

• Refinancing of eligible loans

• Special design features or permanently installed equipment to accommodate a household member who has a physical disability

• Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable

• A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums

• Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling

• Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)

• Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling

• Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

How do we get started?

To apply for this program, please contact a local mortgage lender.

Who can answer questions?

Applicants with questions should contact an approved lender.  Lenders with questions can contact a Guaranteed Loan Specialist in your state.

What governs this program?

• 7 CFR, Part 3555

• HB-1-3555 - SFH Guaranteed Loan Program Technical Handbook

Why does USDA Rural Development do this?

This program helps lenders work with low and moderate income families 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.