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USDA RD Housing Programs

USDA RD Housing Programs. Presented By: David Corwin, Housing Programs Director USDA Rural Development Pennsylvania. USDA Rural Development PA. Single Family Housing:

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USDA RD Housing Programs

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  1. USDA RD Housing Programs Presented By: David Corwin, Housing Programs Director USDA Rural Development Pennsylvania

  2. USDA Rural DevelopmentPA Single Family Housing: Purpose: To provide low-income individuals or households the opportunity to buy or build a decent, safe, and sanitary dwelling. 502 Direct Loan Program 504 Home Repair Program 502 Guaranteed Loan Program 523 Self Help Program

  3. 502 Direct Loan Program • REQUIREMENTS • Property must be located in an eligible rural area • http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do • Borrowers must meet income restrictions • Must not exceed 80% of MHI for the County • Use income banding of 1-4 and 5-8 household members • All Household members are considered for qualifying

  4. 502 Direct Loan Program Property Requirements Modest Housing – mainly defined by Area Loan Limits One unit, owner occupied No income producing property Manufactured Homes allowed if Jan 1, 2006 or newer

  5. 502 Direct Loan Program TERMS 100% Financing based on Appraised Value 33-38 years, fixed rate 1% subsidized interest rate

  6. 502 Direct Loan Program CREDIT No score required • Credit score of 640+ =fast track (If no bankruptcy, foreclosure, federal unsatisfied judgments or liens)

  7. 504 Direct Loans/Grants 504 Home Repair Program Purpose: To provide loans to homeowners to repair, improve, or modernize their homes or provide grants to elderly very-low income (50% of MHI) homeowners to remove health and safety hazards. Owner occupied homes only and applicants may not own another home

  8. 504 Direct Loans/Grants 504 Home Repair Loans and Grants Loans for repairs to improve, modernize, or increase energy efficiency in a home make it safer or more sanitary, or remove health and safety issues pay connection fees for public water and/or sewer. 1% interest rate, 20 years, maximum outstanding balance of $20,000. Grants For homeowners 62 and over who cannot repay a loan, grant funds are available to remove health or safety hazards, or remodel dwellings to make them accessible to household members with disabilities. $7,500 maximum lifetime grant.

  9. 502 Guaranteed Loans Guaranteed Loan Program Purpose: To assist low and moderate income (115% of median income) applicants to purchase new or existing homes. This is made possible by the guarantee of loans made by conventional lenders. Homebuyers make application directly with the participating lender.

  10. 502 Guaranteed Loans Major Advantages Lower fees – only 1% initial funding fee, then .35 Annual No cap on purchase price 101% of appraised value can include repairs and rehab Not limited to 1st time home buyers Reasonable allowances for applicants with less than 12 months at current employer Non-Taxable Income (child support, social security, etc.) can be grossed up 125% for repayment income purposes Deferred/Non-Fixed Payment Student Loans- Use only 1% of the outstanding loan balance

  11. USDA RD Housing Programs South Central Eligibility Overview

  12. USDA Rural DevelopmentPA Single Family Housing Packaging program for non-profits FAHE as approved intermediary

  13. USDA RD MFHPA Multi Family Housing Existing direct 515 portfolio offering rental assistance 538 guarantee for new projects Housing Preservation Grants

  14. USDA RD MFHPA Program Overview Existing Portfolio: 305 properties statewide, encompassing 10,000 + apartment units 293 Direct Properties – 9,921 units (50% elderly, 50% family), located in 60 counties 8 Guaranteed Loans – 527 units, located in 8 counties Average income of residents is $11,500 RD-wide approximately 14,700 properties nationwide, encompassing 500,000 apartment units

  15. USDA RD Housing Programs Contact Information Website: https://www.rd.usda.gov/pa 502 Direct Housing: Main Line (717) 237-2186 504 Repair Loans and Grants: Main Line (717) 237-2186 502 Guaranteed Loans sfhg-apu@rd.usda.gov for all lender questions David Corwin, Housing Programs Director (717) 237-2279

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