USDA Rural Development
502 Guaranteed Housing Loan Program
WHAT ARE THE SPECIAL ADVANTAGES OF THE LOAN?

• No Down Payment
• No Mortgage Insurance
• No Cash Reserves Required
• No stated maximum loan amount; maximum loan based on repayment ability
• Loan up to 102%* of appraised value allowed…not the lesser of Sale Price or Appraisal
• No First Time Homebuyer Requirement
• New and Existing Homes OK
• Fully amortized 30-year fixed rate loan
• No Prepayment Penalty
• No Seller Contribution Limit
• No limitation on source of funds for closing costs
• 100% gifted closing cost or down payment assistance is permitted
• Loan amount can include closing costs and repairs up to 102%* of appraised value
• While an RD GRH loan is not FICO Score driven RD does reward you for higher scores.  Borrowers with a 620 mid-score or higher get an automatic “Credit Waiver” and do not need to explain credit derogatory including BANKRUPTCY and no Rental verification is required.**

*Appraisal may be exceeded by amount of Guarantee Fee; **Exception: Any applicant with delinquent Federal debts, regardless of credit risk score and any applicant with an unsatisfactory payment history on a previous Rural Development loan, regardless of credit risk score.  For general information purposes only.  Loan approval subject to Lender underwriting guidelines and RD regulations 1980-D and applicable ANs.

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