usda rural development single-family housing programs presented by: elsie meeks | south dakota state...
TRANSCRIPT
![Page 1: USDA Rural Development Single-Family Housing Programs Presented by: Elsie Meeks | South Dakota State Director Jenny Rydberg | MN Area Specialist Andrew](https://reader030.vdocument.in/reader030/viewer/2022032703/56649d0d5503460f949e25ef/html5/thumbnails/1.jpg)
USDA Rural DevelopmentSingle-Family Housing Programs
Presented by:
Elsie Meeks | South Dakota State Director
Jenny Rydberg | MN Area Specialist
Andrew Gag | MN Area Specialist
USDA Rural Development
2014
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DiscussionTopics
• Brief overview of USDA Rural Development
• Direct home loan (purchase) programs
• Guaranteed home loan (purchase) program
• Direct home loan/grant repair program
• South Dakota Housing Initiatives
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OUR MISSIONUSDA Rural Development’s mission is to improve economic opportunity and enhance the quality of life in rural America.
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2009-2013
$2.3 billion benefitting American Indians & Alaska Natives
Including:
• Housing Loans | $594.1 million 4,724 loans
• Water/Wastewater | $388.6 million
• Community Facilities | $368.2 million
• Broadband/Telecom | $294 million
• Electric | $558.3 million
• Rural Business and Cooperative Programs $96 million
Investments
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Community Facilities Loan/Grants• Fire/Rescue
o Fire Halls
o Trucks/Ambulance/ Other Equipment
• Healthcare
o Hospitals / Clinics
• Public Service Buildings
o Library / Community Center / Daycare
• Streets/Sidewalks/Bridges(limited)
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MN CF Projects
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RURAL BUSINESS PROGRAMS• Business & Industry Loan Guarantees
• Rural Business Enterprise Program
• Intermediary Relending Program
• Rural Economic Development Loans & Grants
• Rural Cooperative Development Grants
• Rural Business Opportunity Program
• Value-Added Producers Grants
• Small, Socially Disadvantaged Producer Grants
• Many Energy Loan and Grant Programs
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Multi-Family Housing Programs
Section Program
588 Housing Preservation Grants
515 Direct Loans
538 Guaranteed Loans
www.rurdev.usda.gov/HMF_MFH.html
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HOME PURCHASE PROGRAMS
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Section 502 Home Loan
Program
• Home loans for low and
very-low income individuals
• Income limits apply (based
on household size & county)
• Loan limits apply -- by
county
• Applications are filed with
Rural Development area
offices
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PROGRAMHIGHLIGHTS
• Loans up to 100% of appraised value
• Closing costs may be financed
• Fixed interest rate, 33-year term
• Payment assistance available
• Subsidy is subject to change annually
• Subsidy is subject to recapture at the time of sale or
refinance
• Homebuyer education required for first time
homebuyers
• Home inspection and/or technical certification
required
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
32 39 43 40 42 25 16 6 25 6 15 12 6 10
250
222 202268 290 252
225 219 196 192
341
188144
156160
231209
282 291 278236
274
438
619
891884
209
1100
Direct On Trust LandDirect TotalGuaranteed Total
502 SFH Loan Activity to AI/AN
Fiscal Years
Nu
mb
er
of
Loan
s 502 Direct 2000 – 2013
Total Loans = 3,145
Trust Land = 317
10% on Trust Land
12
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ELIGIBILITY• Individuals or families who do not own a
dwelling or current dwelling is inadequate
• Unable to obtain credit from other sources
• Must personally occupy the property financed
• Have adequate and dependable income
• Have an acceptable credit history
• Adjusted household income cannot exceed 80% of median county income
• Home must be located in a rural area, defined as population of 20,000 or less
• Legal capacity to incur loan obligation
• U.S. Citizen, permanent resident or qualified alien
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Direct Loan Purposes
• Purchase New (end or permanent loan)
o Stick or Modular
o Manufactured (must be approved dealer-
contractor, owned site, permanent
foundation)
• Purchase Existing
o Stick or Modular
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APPLICANTCHALLENGES
• Adequate Cash for Closing Costs
• Meeting Debt to Income Ratio
• Annual vs. Repayment Income
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HOMEBUYER EDUCATION
• Required for all applicants• Acceptable Programs
• Homestretch• Framework• E-Home America• Pathways
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ACCEPTABLE CREDIT• No outstanding judgments obtained
by the United States in Federal Court.
• More than one credit score listed on their Residential Mortgage Credit Report that result in a reliable credit score of 640 or higher.
UNACCEPTABLE CREDIT• Little or no credit history
• Past foreclosure
• Collection accounts
• Judgments
• Two or more 30-day late payments on revolving debt
• One 30-day late payment on installment debt
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PATHWAY TO BETTER CREDIT
• Collection Accounts
• Must be paid off for 6 months
• Judgments
• Must be settled for at least 12 months
• Bankruptcy
• Debt must be discharged 36 months
prior to an application
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EMPLOYMENTREQUIREMENTS
• Stable and Dependable
• Reasonably expected to continue for at least
two years
• Would like to see two-year history of receiving
the income but not required.
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• Evidence of tribal action for legally binding and effective foreclosure procedures and will enforce those procures upon notice of default from a lender and or Agency.
• Evidence of tribal adoption procedures ensuring that the federally guaranteed loan will always have first lien priority.
• A copy of the tribe’s lease for use on residential land.• Signed tribal affirmation stating tribal understanding of the
importance of maintaining and enforcing the above procedures.• Signed tribal affirmation stating tribe agrees to permit the
agency and/or lender and agents to access mortgaged properties for the purpose of evaluating and servicing loan-related items.
Tribal Trust Mortgage Requirements
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Websites for income limits, property eligibility, etc.
• For income and property eligibility:
http://eligibility.sc.egov.usda.gov/eligibility
• Rural Development Website: http://www.rurdev.usda.gov
• MN Offices and Contacts:
http://www.rurdev.usda.gov/MN-Contacts.html
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GUARANTEED HOMELOANS
• Applications are made with approved
local lenders or mortgage companies
• Any licensed lender can originate loans
and reserve funds
• Interest rate is negotiated between
lender and applicant and Rural
Development guarantees the loan
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Guaranteed Loan Purposes
• Purchase New (end or permanent loan)
o Stick or Modular
o Manufactured (must be approved dealer-
contractor, owned site, permanent
foundation)
• Purchase Existing
o Stick or Modular
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PROGRAM HIGHLIGHTS
• Designed for moderate income families
• No maximum purchase price or loan limit
• Loans made up to 102% of appraised value
• 30 year term-fixed interest rate
• No restrictions on size or design of home
• No mortgage insurance required
• Non-traditional credit histories accepted• Expanded qualifying ratios: 29/41% (waivers possible per eligibility)• No asset limitations, closing cost or seller concessions limitations• Repairs may be financed up to 100% of appraised or “as improved”
value• Credit scores – No Minimum
– >680 – streamlined=no further review of credit – <680 – review per Rural Development regulations
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ELIGIBILITY• Live in rural area, defined as community
with population of 20,000 or less (unless exception made up to 25,000)
• Income cannot exceed adjusted annual income established for each county.
• Income limits available at http://eligibility.sc.egov.usda/eligibility/welcomeAction.do
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HOME REPAIRPROGRAM
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Fiscal Years
Nu
mb
er
of
Loan
s FY 2013 Highlights
Total Grants =175Total Loans = 4734.2% On Trust
Lands
504 SFH Activity to AI/AN
27
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ELIGIBILITY• Individual or family homeowners of single-
family dwellings in need of repair.
• Property value NOT in excess of the applicable area loan limit
• Adjusted income NOT in excess of the applicable income limit for the county
• Live in a rural area, defined as community with population of 20,000 or less (exceptions can be made for communities with populations up to 25,000 in certain cases)
• Must lack personal resources to pay for the needed repairs
• Asset limits apply -- $20,000 elderly; $15,000 non-elderly
• Must be U.S. Citizen, permanent resident or qualified alien
• Posses legal capacity to incur loan obligation
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PROGRAM HIGHLIGHTS
Loan Qualifications
• Very-low income homeowners with homes in need of repair
• Must have an acceptable credit history
• Maximum loan is $20,000
• Fixed interest rate of 1% with a term up to 20 years
• Mortgage required for loans over $7,500
• Appraisal required for loans over $15,000
Grant Qualifications
• Homeowners 62 years of age or older unable to make payments on a 1% loan
• Limited to removal of identified health and safety hazards or to make accessible
to household members with disabilities
• Maximum life-time grant is $7,500
• Maximum loan/grant combination is $27,500
• Grant must be repaid if home sold within three years of grant approval
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PARTNERSHIP• Tribal Housing Authorities• Community Action Agencies
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Rural Development Housing Programs in South Dakota