USDA: No-down-payment home loans to build or purchase available at USDA Rural Development

CONTACT: Kelly Edwards

PHONE: 715-340-1264

E-MAIL: kelly.edwards@wi.usda.gov

STEVENS POINT, WI — The USDA Rural Development Wisconsin Guaranteed Rural Housing (GRH) loan program is on pace for another record setting year, according to Wisconsin USDA Rural Development housing officials.

“USDA Rural Development’s GRH Program continues to be an excellent resource for applicants who want to build or purchase a home,” said USDA Rural Development State Director Stan Gruszynski. “In Fiscal Year 2009, USDA Rural Development in Wisconsin set a record by assisting over 3,700 individuals and families with over $400 million in Guaranteed Loans – a number that we’ll likely surpass this year. The Federal Government is working hard to improve rural communities throughout the Nation and Wisconsin continues to benefit from those efforts through the GRH loan program.”

The USDA Rural Development Guaranteed Rural Housing Program allows applicants to finance the purchase price, closing costs and repairs up to 100 percent of the appraised value of the home. There is no purchase limit and no down payment; while interest fixed rates are amortized over 30 years. Additionally, there is no Private Mortgage Insurance (PMI) required.

GRH loans are financed through participating lenders, such as banks, credit unions, and mortgage brokers; and are guaranteed by the Federal Government, providing protection in case of loss. Financing is for new construction, existing homes or modular homes meeting HUD guidelines. There are no restrictions on the size or design of the home.

Applicants have no minimum credit score requirement, but mortgages are limited by the applicant’s repayment ability. GRH loans also feature favorable income limits for owners. For example, the adjusted annual family income in Columbia County for a family of one to four cannot exceed $77,850; while a family of five to eight members cannot exceed $102,750.

USDA Rural Development charges a one-time guaranteed fee of 2 percent of the loan amount to the lender. This fee is typically passed onto the applicant, however, it may be rolled into the loan amount, allowing a loan of up to 102 percent of the appraised value of the home.

The agency has six area offices located throughout the state, ensuring personal access. For the office nearest you, visit http://www.rurdev.usda.gov/wi/programs/rhs/sfhg/index.htm

or call 715-345-7620 for assistance. Further information is available by visiting the website at http://www.rurdev.usda.gov/wi.