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USDA Rural Development

USDA Rural Development. Grants & loans for non-profits Homeownership Home Repair Serve rural areas. USDA Rural Development Mutual Self-Help Grants. Public & private non-profit organizations Used to operate a mutual self-help program Covers admin expenses, necessary tools

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USDA Rural Development

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  1. USDA Rural Development • Grants & loans for non-profits • Homeownership • Home Repair • Serve rural areas

  2. USDA Rural Development Mutual Self-Help Grants • Public & private non-profit organizations • Used to operate a mutual self-help program • Covers admin expenses, necessary tools • Up to 15% of cost of modest housing times the number of homes to be built • Serve applicants up to 80% MHI

  3. USDA Rural Development Technical & Supervisory Assistance (TSA) Grants • Public & private non-profit organizations • Used to fund homeownership & financial counseling and delivery of housing programs • Covers admin expenses • Serve applicants up to 80% MHI • Nationally competitive under a NOFA

  4. USDA Rural Development Site Loans • Public & private non-profit organizations • Used to acquire and develop land • Covers admin expenses • Repaid from the sale of lots within 2 yrs • Serve applicants up to 115% MHI

  5. USDA Rural Development Home Ownership Programs • Guaranteed Rural Housing (GRH) Loans: market interest rate made by local lenders • Direct Loans: subsidized interest rate made by local USDA Rural Development Offices • 100% LTV

  6. Affordable • GRH loans are guaranteed by USDA Rural Development eliminating the requirement for Private Mortgage Insurance • Direct loans are subsidized to reduce the monthly payment

  7. Flexible • Can include money for repairs • Can be used for new construction

  8. Income Limits • Based on family size for the county of residence as a % of Median Household Income: • GRH – 115% • Direct – 80%

  9. Repayment Ability • 29% PITI (Principal + Interest + RE Taxes + Insurance) • 41% TD (Total Debt)

  10. Credit History • If credit score is at least 660 and there are no judgments, we don’t analyze credit history • Credit issues may be waived if we determine: • Loan will reduce housing costs or • Circumstances were temporary, beyond applicant’s control, and have been resolved

  11. Loan Limits • Direct varies by county ($113,700 - $154,800) • GRH limited by repayment ratios and income limits

  12. Other Requirements • U. S. citizen or a qualified alien • Cannot already own an adequate home • Personally occupy the home • Unable to get a conventional loan (20% down) • Rural areas only

  13. USDA Rural Development Repair Loans and Grants • Used to make essential repairs • Serve rural homeowners up to 50% MHI • Grants limited to those 62 and older who cannot repay a loan

  14. USDA Rural Development Repair Loans and Grants • Maximum loan: $20,000 at 1%, 20 yrs • Maximum grant: $7,500 lifetime • Grant must be repaid if house sold within 3 years

  15. Eligibility Web Site • http://eligibility.sc.egov.usda.gov/eligibility/mainservlet • Shows if a specific property is in an eligible area • Maps of ineligible areas • Check income eligibility

  16. Where to go for more information • Contact local USDA Rural Development Office serving your area • http://www.rurdev.usda.gov/in/ • (317) 290-3100 ext 558 • Paul.Neumann@in.usda.gov

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