USDA RURAL DEVELOPMENT
SINGLE FAMILY HOUSING INFORMATION SESSION
www.rurdev.usda.gov/pa
Thomas P Williams, State Director
Mission Statement: “Enhance the ability of rural communities
to develop, to grow, and to improve their quality of life by
targeting financial and technical resources in areas of greatest
need through activities of greatest potential.”
RURAL DEVELOPMENT
SINGLE FAMILY HOUSING PROGRAM INFORMATION SESSION
Topics that will be covered:
 502 Direct Loan Program
 504 Home Repair Program
 502 Guaranteed Loan Program
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502 DIRECT LOAN PROGRAM
Purpose:
To provide low-income individuals or households the opportunity to
buy or build a decent, safe, and sanitary dwelling.
100% financing based on appraised value
** 1% subsidized interest rate **
Only one time $25.00 credit fee
•No mortgage insurance, funding fee,
organization fee or administration fee
CREDIT
No score required
 Credit score of 640+ =fast track
(If no bankruptcy, foreclosure, federal unsatisfied
judgments or liens)
How to Apply : 1st Step
LOAN APPLICATION PACKAGERS
A loan application packager, who has real estate and/or
mortgage experience, may submit a complete loan
application package on behalf of an applicant.
Only a non-profit or public entity is eligible to receive a
packaging fee for service.
504 HOME REPAIR LOANS AND GRANTS
PURPOSE: TO PROVIDE LOANS TO HOMEOWNERS TO REPAIR, IMPROVE, OR
MODERNIZE THEIR HOMES OR PROVIDE GRANTS TO ELDERLY VERY-LOW
INCOME HOMEOWNERS TO REMOVE HEALTH AND SAFETY HAZARDS.
504 HOME REPAIR LOANS AND GRANTS
Purpose:
•To provide assistance to very low income (50% of median income) owners of modest
single-family homes in eligible rural areas.
Loans
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for repairs to improve or modernize 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.
(504) 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.
Pennsylvania’s GRH Program consistently has one
of the FASTED turn times in the industry!
Average 2-3 business day turn time!!
MAJOR ADVANTAGES
•Partner with private sector lenders
•Can combine GRH with PHFA
•Not limited to 1st time home buyers
•No cap on purchase price
•102.75% pf appraised value can include repairs and rehab
•Reasonable allowances for applicants with less than 12 months at current
employer
•(Ex: Remains in the same line of work, recent graduate or member of the
military, re-entering the workforce after an absence to care of a family member,
medical illness or other reasonable circumstance)
•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
GUARANTEED RURAL HOUSING LOAN PROGRAM
Eligible Loan Purposes:
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Purchase a new or existing single-family dwelling.
Refinance existing GRH loans
New construction must comply with applicable building codes.
Must meet property standards of HUD Handbook 4000.1
Home must be located in an eligible area.
Maximum Loan Amounts:
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Applicant’s income and repayment ability will dictate the maximum loan amount.
No county loan limit.
Loan amount cannot exceed the appraised value of the property.
Closing costs, guarantee fee, legal fees, title services, costs of establishing an
escrow account, and other prepaid items may be included as long as the total
loan does not exceed the appraised value.
Loans may be for up to 100% of the appraised value plus guaranteed fee .
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GUARANTEED RURAL HOUSING LOAN PROGRAM
Loan Rates and Terms:
30 year term.
Fixed interest rate set by approved lender
 Rate can not be higher than the 30 year, 90 day actual / actual Fannie Mae rate plus 100 basis points.
Fees:
A one time Guarantee Fee of 2.75% of loan amount and .5% of average annual
balance charged to the lender. (may be passed on to the applicant and may be
financed)
Mortgage insurance is not required.
There is no limit on seller contribution to closing costs unless set by the lender.
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2014 ACCOMPLISHMENTS
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South Central Pennsylvania
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GENERAL INFORMATION
All funding has been received from the CR.
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Eligibility areas remain based upon 2010 census.
Guaranteed program is centralized in RD State Office.
Lenders send application packages to general mail box (pagrh@pa.usda.gov)
502 Program centralized.
Applications returned to RD State Office for review, then sent to specialists in area offices
for processing.
Income and property eligibility site:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1
Rural Development, PA website:
www.rd.usda.gov/pa
CONTACT INFORMATION
RD PA State Office Housing Line: (717) 237-2186
Chester.Pogorzelski@pa.usda.gov (717) 237-2277
David.Corwin@pa.usda.gov (717) 237-2279
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