Overview of the Guaranteed Rural Housing
ï‚·ï€ This is the lenderâ€™s loan. Lenders underwrite and approve loans using their own formsÂ Â Â
along with some Rural Development (RD) forms.
ï‚·ï€ 100% financing.Â Â No down payment required. The GRH fee may be included in the loan
amount in excess of the RMV for up to 102% financing.
ï‚·ï€ Guarantee fee is 2.0 of loan amount.Â Â
ï‚·ï€ Single family homes, townhouses and approved condos in eligible rural areas.
ï‚·ï€ Income limitsÂ â€Â 115% of the HUD median income limits.
ï‚·ï€ Repayment Ratios: PITI = 29% & total debt ratio = 41%.Â Â Ratio waivers are availableÂ Â w i t h
ï‚·ï€ Loans saleable in secondary market and to SHFA.
ï‚·ï€ Closing costs can be included in the loan (points cannot be included unless applicant is
low income). If sale price is less than appraised value borrower can include closing
costs up to appraisal amount.
ï‚·ï€ No limit on seller contributions.
ï‚·ï€ Fixed Interest RatesÂ â€Â Rate may not exceed the FNMA 90 day yield rate plus 60 basis
points rounded up to the next full quarter percentage. See Fannie Mae website:
ï‚·ï€ 30 year term.
ï‚·ï€ No loan amount limit.