Single Family Housing Direct and Guaranteed Loan Programs for Low-Income Group Borrowers

1. Single Family Housing Direct and Guaranteed Loan Programs for Low-Income Group Borrowers Here in the US, the federal housing administration (FHA) and USDA has made it easier for rural borrowers to obtain single family home loans through down payment assistance, with the benefit of reduced interest rates. Here, a borrower is provided with the choice of fixed & floating rates. The state and federal government sponsored subsidies help borrowers enhance their repayment ability, by lowering the mortgage payment. The main beneficiaries are the low-income families, as 40% of the funding is directed towards their cause. In states like Arizona and Colorado, one can partner with mortgage brokerage firms and agencies like “Affordable Interest Mortgage” that can help shortlist the right lender for one such single family housing FHA or USDA loan. There are mainly 2 types of loans. One is the Single Family Housing Guaranteed Loan Program, and the other is Single Family Housing Direct Home Loans. These programs assist lenders in providing low- interest finance to all eligible applicants to purchase, improve or build a home in a rural area with 100% financing. The applicant must be a US citizen, intend to personally dwell in the primary residence, and his/her income cannot exceed 115% of the meridian household income. One can visit the ‘USDA Eligibility Site’ for more information about the same. Easy Approval Single Family Home Loans for All US Citizens in the Rural Areas In order to know how much one can borrow, an applicant can use the ‘Single Family Housing Direct Self- Assessment’ tool, by entering their personal information online. The tool provides a sort of preliminary review about the loan amount, based on their monthly income, bad debts, taxes, property location and insurance. One has to fulfill all these criteria for getting approved for a loan to purchase a single family home in any of the US states. Mainly, the US Department of Agriculture (USDA) offers such loans on a long payback period for up to 38 years, with minimum or NO down payment at all. The processing time of applications depends on the demand in the area or state. This is how local communities in the rural US are thriving over the years through such home finance programs. The Section 502 of USDA’s Rural Development scheme offers all low-income families to own a home in a rural area. As there’s NO down payment required, applicants can utilize assets in excess of their asset limits. Also, there’s NO mortgage insurance required. For the direct loan program, the government has set aside $900 million annually. In fact, such programs are perfect for all first-time home buyers and mortgage holders.