# Presentation: 682582

## USDA Rural DevelopmentCommitted to the future of rural communities.

- Single Family Housing Programs

## Section 502Direct Homeownership Loan

- Eligible Applicants: Low and very- low income families and individuals
- Use: Purchase of existing house, construction of new house, repair or renovate a house being purchased *through our program*
- 33-38 year term
- Low interest rates

## Income and PropertyEligibility

- _Income and Property__Eligibility_

- http://eligibility.sc.egov.usda.gov/eligibility

## NYS Loan Limits

**$160,550**

**160,176**

**$303,750**

**$343,790**

**$173,850**

**$140, 038**

**$160,176**

## Section 502Guaranteed Homeownership Loan

- Lenders’ Loan
- Eligible Applicants: Moderate Income households
- No Down Payment
- 100% Financing (also available through Direct)
- No PMI
- 2% one- time guarantee fee

## Section 504 Home Repair Loans and Grants

- Eligible Applicants: Very- low income homeowners
- Grants: Age 62 and over
- Use: Improve or modernize home
-  Grants must be used to remove health or safety hazards, make property handicap accessible
- Maximum outstanding loan: $20,000
- Maximum grant: $7,500
- 1% interest rate, 20 year term

## Section 523 Self- Help HousingLoans and Grants

- Build a home with “sweat equity”
- Applicants apply for a 502 Direct Loan
- Non- profit organization obtains a 523 Technical Assistance Grant to provide support
- Applicants provide substantial portion of labor

## Loan Processing Center

- Similar to commercial loan processing center
- Streamline loan processing from application to closing
- Processing consistency throughout state
- Improve processing time
- Field staff available for developing partnerships and reaching new customers

## Section 502Guaranteed Homeownership Loan

- Lenders’ Loan
- Eligible Applicants: Moderate Income households
- No Down Payment
- 100% Financing (also available through Direct)
- No PMI
- 2% one- time guarantee fee

## Slide 10

|   | RURAL DEVELOPMENT  GUARANTEED RURAL HOUSING | FHA | SONYMA   (State of New York Mortgage Agency) | CONVENTIONAL |
| --- | --- | --- | --- | --- |
| DOWN PAYMENT REQUIRED | NONE | 3% OF OWN FUNDS | 3% OF OWN FUNDS | 5% -20% |
| HOUSING RATIO (PITI) | 29% ** | 29% | 33% | 28% |
| TOTAL DEBT RATIO (TDR) | 41%** | 41% | 38% | 36% |
| PRIVATE MORTGAGE INSURANCE REQUIRED | NONE | .5% MONTHLY MIP | VARIES BASED ON LTV | VARIES BASED ON LTV |
| FUNDING/GUARANTEE FEE | 2.0% OF LOAN AMOUNT-CAN BE FINANCED | 1.5% MIP | N/A | N/A |
| INCOME LIMITS | CAN'T EXCEED MODERATE INCOME LIMITS FOR AREA | NONE | YES -TARGETED AND NON-TARGETED AREAS | N/A |
| LTV LIMITS | APPRAISED VALUE PLUS GUARANTEE FEE   | 97.75%>$50,000 98.75%<$50,000 | 97% OR 100% NEW CONSTRUCTION | 95% |
| LOAN LIMITS | BASED ON APPRAISED  VALUE & REPAYMENT ABILITY | FIXED MAXIMUM SET BY HUD | FIXED MAXIMUM SET BY SONYMA | BASED ON APPRAISED  VALUE & REPAYMENT ABILITY UP TO FIXED JUMBO AMOUNT |
| LENDING AREAS | RURAL | NO RESTRICTIONS | TARGETED AND NON-TARGETED AREAS | NO RESTRICTIONS |
| ELIGIBLE PROPERTIES | SINGLE FAMILY-NEW OR EXISTING OR NEW MANUFACTURED | 1-2 FAMILY                     NEW AND EXISTING | 1-2 FAMILY* | 1-4 FAMILY |
| MAXIMUM TERM | 30 YEARS | 30 YEARS | 30 YEARS | 30 YEARS |
| CLOSING COST - SELLER CONCESSIONS | NO LIMIT | UP TO 6% | UP TO 6% BASED ON LTV | 3%-6% based on LTV |
|   |   |   |   |   |

## Income and PropertyEligibility

- _Income and Property__Eligibility_

- http://eligibility.sc.egov.usda.gov/eligibility

## Slide 12

|   | RURAL DEVELOPMENT  GUARANTEED RURAL HOUSING | FHA | SONYMA   (State of New York Mortgage Agency) | CONVENTIONAL |
| --- | --- | --- | --- | --- |
| DOWN PAYMENT REQUIRED | NONE | 3% OF OWN FUNDS | 3% OF OWN FUNDS | 5% -20% |
| HOUSING RATIO (PITI) | 29% ** | 29% | 33% | 28% |
| TOTAL DEBT RATIO (TDR) | 41%** | 41% | 38% | 36% |
| PRIVATE MORTGAGE INSURANCE REQUIRED | NONE | .5% MONTHLY MIP | VARIES BASED ON LTV | VARIES BASED ON LTV |
| FUNDING/GUARANTEE FEE | 2.0% OF LOAN AMOUNT-CAN BE FINANCED | 1.5% MIP | N/A | N/A |
| INCOME LIMITS | CAN'T EXCEED MODERATE INCOME LIMITS FOR AREA | NONE | YES -TARGETED AND NON-TARGETED AREAS | N/A |
| LTV LIMITS | APPRAISED VALUE PLUS GUARANTEE FEE   | 97.75%>$50,000 98.75%<$50,000 | 97% OR 100% NEW CONSTRUCTION | 95% |
| LOAN LIMITS | BASED ON APPRAISED  VALUE & REPAYMENT ABILITY | FIXED MAXIMUM SET BY HUD | FIXED MAXIMUM SET BY SONYMA | BASED ON APPRAISED  VALUE & REPAYMENT ABILITY UP TO FIXED JUMBO AMOUNT |
| LENDING AREAS | RURAL | NO RESTRICTIONS | TARGETED AND NON-TARGETED AREAS | NO RESTRICTIONS |
| ELIGIBLE PROPERTIES | SINGLE FAMILY-NEW OR EXISTING OR NEW MANUFACTURED | 1-2 FAMILY                     NEW AND EXISTING | 1-2 FAMILY* | 1-4 FAMILY |
| MAXIMUM TERM | 30 YEARS | 30 YEARS | 30 YEARS | 30 YEARS |
| CLOSING COST - SELLER CONCESSIONS | NO LIMIT | UP TO 6% | UP TO 6% BASED ON LTV | 3%-6% based on LTV |
|   |   |   |   |   |

## Building a community from the ground up...

- Single Family Housing and Rural Rental Housing
- Rural Utilities Programs
- Water and sewer loans and grants
- Community facilities loans and grants
- Broadband loans and grants
- Distance Learning and Telemedicine
- Rural Business Programs
- Business and Industry Guaranteed loans
- Rural Business Enterprise Grants
- Revolving loan funds
- Renewable Energy and Value Added grants
- REAP Zones

## Slide 14