USDA Single Family Housing 

Guaranteed Loan Program 

National Homeownership 

Month 2023

Kendra Harmon, Finance & Loan Analyst

Lender and Partner Activities Branch

Washington, D.C. 
Welcoming Rural Americans Home

Over 30 Years
Today’s Agenda:

• Mission Statement

• Single-Close Construction

• Rehabilitation & Repair

• Manufactured Housing

• Tribal Lending Initiative

• Program Updates
Mission & Goals
Single Family Housing Guarantee 

Loan Program

VISION

To create efficiencies and cultivate partnerships to 

strengthen and expand the program to benefit rural 

communities.

MISSION STATEMENT

Provide affordable and sustainable homeownership 

opportunities for low- and moderate-income people in rural 

areas that may not be afforded the opportunity to be 

homeowners otherwise. 
Affordable 

Housing 

Alternatives
Basic Qualifications

1. Home located in rural area 2. Household income below 115% of MHI
SFHGLP Comparison Chart
Program Highlights

• 100% LTV financing (no down payment required)

• 1% Guarantee Fee may be included in loan

• Loan Amount may include typical closing costs, up to 

100% of “As Improved” value

• Maximum loan amount based on “As Improved” value

• No limits on sales price or loan amount

• Not limited to first time home buyers
Single-Close Construction 
Single Close Construction 

Loan Product

Combines the shortterm interim 

construction loan 

with the traditional 

long-term permanent 

residential mortgage

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Single Close Construction Buyer Benefits

Contingency Reserves

Escrow up to 10% of purchase price to 

fund cost overruns to protect from out of 

pocket payments

Realtor Commission 

Paid at time of closing – prior to 

construction

Payment Reserves

Allows up to 12 months of P&I or PITI 

payments to be rolled into loan amount 

Re-amortization

Remaining reserves are applied to reduce 

the principal balance

Less Maintenance

Owners of new construction have less 

maintenance than existing properties

One Closing

Only one loan closing required, saving 

borrower from excess closing costs
Single Close Construction Lender Benefits

Reduced Risk 

To Lenders with 90% guarantee and no capital 

needed from Builders

Loan Note Guarantee at Closing 

Issued after closing before construction 

begins

Servicing Rights

Lenders may sell servicing rights immediately 

after closing

Sellable on Secondary Market

Ability to sell immediately after closing on 

secondary market

Two Products Available 

Securitized and Standard

Expand Client Base

Provides a no down-payment loan product 

for a new build in a low inventory market
Securitized vs Interest Only

Interest rate, construction contingency, and payment reserves are established at close.

LNG issued at signing and construction begins.

Securitized Version

Principal, interest, taxes, 

insurance (PITI) payments are 

made during construction 

from the reserve.

Construction complete. No 

loan mod needed. Excess 

contingency reserve funds 

applied as principal 

curtailment.

Interest Only Version

Monthly interest is paid from 

interest payment reserve on 

construction loan balance.

Construction completed and 

excess reserves applied to 

principal. Loan modification 

to re-amortize the remaining 

balance. 
Lender Qualifications

Lender 

Qualifications

USDA approval to participate in the SFHGLP

Lenders self-certify that staff has two or more 

years experience in making and administering 

construction loans

Lender may employ a construction loan 

management company with two or more 

years experience in lieu of in-house staff 

experience
Monitor fixed price 

construction contract

Approve construction 

contractors that meet 

USDA requirements

Retain evidence of 

contractor/builder loan 

management company

Monitor custodial 

reserve account if 

securitized or maintain 

warehouse line of credit

Approve any change 

orders during 

construction

Lender Responsibilities

Confirm eligibility of 

contractors/builders and 

approve if meets USDA 

requirements
2 or more years experience 

with SFH construction 

State issued contractor’s 

license

Commercial general liability 

insurance

Provide references 

Owner-builders not 

eligible

Builder Responsibilities

Must provide Builder’s 

Warranty
Single Close Construction Loan

Land

Construction 

Hard Costs

Construction 

Soft Costs

Acquisition or payoff balance of 

land owned

Costs outlined in construction 

budget and third party (well, 

septic, driveway, utilities)

Inspections, survey, 

permits, administrative 

fees, payment and 

contingency reserves 
Single Close Construction

Land Value

All costs 

associated 

with 

construction

Reserves

Appraised Value

The appraiser must be 

given all costs associated 

with the construction to 

be included in the final 

market value
Documentation Options

Documentation 

Requirements:

Option #1 Option #2 Option #3

Evidence of certified plans 

and specifications

Copy of the certification from a 

qualified individual or 

organization that the reviewed 

documents comply with 

applicable development 

standards; OR

Certificate of Occupancy issued 

by a local jurisdiction; OR

Building Permit (or equivalent) 

issued by local jurisdiction.

Evidence of construction 

inspections

Certificate of Occupancy issued 

by local jurisdiction showing at 

least 3 construction phase 

inspections, and an acceptable 

1-year builder warranty; OR

Three construction phase 

inspections performed at each 

phase identified in Section 

12.9(B) of our Handbook; OR

Final inspection and a 10-year 

insured builder warranty.

Evidence of thermal 

standards

The final inspection, or 

Certificate of Occupancy issued 

by local jurisdiction; OR

Builder may certify confirmation 

with the IECC standards; OR

A qualified, registered architect 

or qualified, registered engineer 

may certify confirmation with 

IECC standards.
Single Close Construction Loan

Rehabilitation and Repair
Rehabilitation & Repair

Expand your client’s 

inventory options 

through our 

Rehabilitation and 

Repair Loan Product!
Single Close Rehab and Repair Benefits

100% Financing up to 100% of “as improved” 

appraised value.

Purchase Existing while able to customize 

improvements.

One Loan Closing with funding for both 

purchase and eligible rehabilitation.

Realtor Commission is paid at time of 

closing – prior to repairs.

Reduced Risk to Lenders as loans may be 

sold immediately on secondary market 

once the LNG is issued.

Loan Note Guarantee is issued after 

closing – before repairs begin.
Property 

Eligibility

New construction or incomplete 

constructions are not eligible. Home 

must be 12 months or older.

If dwelling must be demolished as part 

of rehab, the existing foundation must 

still be in place.

Properties where the foundation has 

been demolished or where only the 

footings remain are ineligible.

Property Eligibility
Requirements

“As-Improved” value will be used as loan limit with 

copy of repairs and costs to be provided to appraiser.

Maximum construction period of 6 months with any 

extensions approved at Lender’s discretion.

Fully executed fixed-price contract to include start and 

end dates and made part of the security instrument.

If unpermitted work is discovered, code enforcement 

will determine process to permit previous construction 

– all permits must be obtained for new work.

Requirements
Non-Structural Structural

Finance up to $35,000 in repairs COST Finance over $35,000 in repairs

Subject to repair type INSPECTION Qualified inspector is required

Allowed –

10% if utilities are on; 15% if utilities are 

off

CONTINGENCY

Allowed –

10% if utilities are on; 15% if utilities are 

off

Optional RESERVES PITI reserves up to 6 mos when dwelling is 

uninhabitable
Managing Construction

Experience

Contractor Inspector

Originating lenders do not need 

construction experience if 

servicing lender will administer 

construction phase

The lender may engage any 

inspector or consultant deemed 

qualified by the lender to evaluate 

the property

The borrower may not act 

as the general contractor; 

builder/contractors must 

meet USDA requirements
Eligible Loan Purposes

Eligible Loan Costs:

 Upgrade and renovate kitchen, 

bathrooms, floor coverings, etc.

 Create accessible amenities for 

individuals with disabilities

 Structural alterations, additions, or 

reconstruction

 Install energy conservation or 

weatherization features

 Addition of garage; attached or 

detached

 Remove health and safety hazards

 Repair or install utilities
Prohibited Loan Purposes

Prohibited Loan Purposes:

 Investment properties

 Installation of new swimming pools, saunas or hot 

tubs

 Installation of luxury items such as exterior 

fireplaces, backyard kitchens, etc.

 Convert existing structures such as a barn or 

outbuilding into a single family dwelling

 Alterations that allow income producing property

 Repair to new or existing manufactured homes or 

condos

 Repairs or improvements to common spaces such 

as playgrounds or meeting rooms
Manufactured Housing
Manufactured Housing

When used in 

conjunction with the 

Single Close 

Construction product 

Manufactured 

Housing is a great 

purchase option for 

your homebuyer!
Unit must...

Manufactured Homes

Be new (less than 12 

months old and never 

occupied).

Have a minimum 

floor area of 400 

square feet.

Have a remaining 

economic life of at least 

30 years.

Be placed on a permanent 

foundation on land owned 

by the applicant.
Restrictions

Manufactured Homes

Unit may not be approved 

without a site.

Repairs not 

associated with a unit 

already financed by 

USDA are not eligible.

Furniture or any other 

movable articles of 

personal property are 

ineligible.

Additions or modifications except 

for: porches, decks or other 

structures built to engineered 

designs and approved by local 

code officials.
Restrictions

Manufactured Homes

Units with towing hitch 

are not authorized.

Units with running 

gear remaining are 

not eligible.

Units older than 12 

months from date of 

purchase agreement are 

not eligible.

The purchase of a unit that is 

moved from any site other 

than a dealers lot is not 

authorized.
Site & 

Construction

Manufactured Homes

Unit and site to be 

classified, zoned and 

taxed as real estate.

Both unit and site 

must be secured by 

recorded mortgage.

Licensed manufactured 

home dealer required 

from purchase through 

completion.

Certification from dealer and 

builder required stating 

properly joined & sealed and 

not damaged during transport.
Site & 

Construction

Manufactured Homes

Foundation must meet 

HUD Handbook 

requirements.

Itemized cost 

breakdown of complete 

construction package 

required from dealer.

Cash payment or rebate 

must be deducted from 

unit price and not paid to 

applicant.

Dealer certification of 

proposed cost is full price 

of unit required.
Manufactured Homes – Pilot Program

Federal Register :: Single Family Housing Section 502 Direct and Guaranteed Manufactured Housing Pilots

Have been constructed on 

or after January 1, 2006.

Meet all other criteria 

set forth in 7 CFR Part 

3555 and HB-1-3555.

Unit must...

Have no alterations 

or modifications 

since construction in 

the factory except 

for...

Porches, decks, or other 

structures which were built to 

engineered designs or were 

approved and inspected by local 

code officials are acceptable.

States included in the pilot 

are: CO, IA, LA, MI, MS, MT, 

NV, NH, NY, ND, OH, OR, PA, 

SD, TN, TX, UT, VT, VA, WA, 

WV, WI, and WY.
Tribal Lending Initiatives
Memorandum of Understanding

• Predefine the roles in the event of a loan default. Eliminate 

court involvement and legal complexities

• Form is fluid and open to alterations to fit needs of lenders 

and tribes with USDA oversight

• 90% Loan Note Guarantee = 100% coverage for first 35%, 

85% coverage for the next 65%
Tribal Lending Pilots

Appraisals

• Addresses current lack of resources and expertise 

of appraisers with knowledge and experience of 

trust land property

• Allows for desktop appraisals to be completed by 

qualified appraisers with knowledge in trust land

• Allows for a qualified person with expertise of 

build or re-build on tribal land to provide the 

Agency with the cost to build new or re-build for 

existing along with property-specific information
Tribal Lending Pilots

Repair/Rehab

• Will make allowances for properties currently 

owned to be treated as purchases

• Must not have current lien on property

• Will not allow for cash-out; solely for use of funds 

for repairs/rehab for existing property

• Follows all other guidelines as our existing 

rehab/repair product
Memorandum of Understanding –

Department of Hawaiian Home Lands

• Updated MOU in December 2022

• Original MOU executed in 1995

• Current portfolio of loans under this MOU is over $21M

• Partnership between USDA, SFHGLP and DHHL to assist 

low to very-low income households in underserved 

communities in rural Hawaiian areas
2023 Lender Awards
2023 Top 5 Originators

2023

Top Originators

1. Movement Mortgage

2. Guild Mortgage Company

3. Cross Country Mortgage

4. Fairway Independent Mortgage

5. Flat Branch Mortgage

Josh Jones and Rob Cameron with Movement 

Mortgage

accepting their 1st place Top Originator award 

from 

Cathy Glover, Deputy Administrator, Single 

Family Housing
2023 Top 5 Wholesale Lenders

2023

Top Wholesalers

1. United Wholesale Mortgage

2. Flagstar Bank

3. Click N Close

4. Caliber Home Loans

5. Plaza Home Mortgage

Brittany Deiner accepting on behalf of United Wholesale Mortgage

for 1st Place Wholesale Lender with 

Ingrid Ripley, Executive Director, SFHGLP
2023 Top 3 Underwriting Quality

2023 Top Underwriting

1. Plains Commerce Bank

2. Iowa Bankers Mortgage Corp

3. Benchmark Mortgage

Kevin Nelson, accepting 1st Place Underwriting award on 

Behalf of Plains Commerce bank with Cathy Glover, 

Deputy Administrator of the Single Family Housing Program
2023 Top 3 State Lenders

1. HR Mortgage Corp - PR

2. First Home Mortgage Corp - MD

3. Jersey Shore State Bank - PA

2023 Top State Lenders

Nitza Rodrigues and Harry Rodriguez accepting the Top State Lender 

Award on behalf of HR Mortgage Corp with Joaquin Altoro, 

Administrator, Rural Housing Service
2023 Top SFHGLP Product Producers

Single Close Construction: 1st Signature Lending

Rehab and Repair: Union Home Mortgage

Manufactured Origination: 1st Signature Lending

Manufactured Wholesale: American Financial Resources
Handbook Updates
•Effective May 20, 2022

•Temporary revision to Chapter 8 

paragraph F, “Having Acceptable 

Citizenship or Immigration Status"

• 7 CFR 3555.151(b)

• "Individuals with a valid social 

security number and valid 

Employment Authorization 

Document (EAD), such as Form I766, issued by the U.S. Department 

of Homeland Security, are eligible 

to participate in the SFHGLP."

•SAVE will continue to be utilized to 

determine eligibility through GUS. The 

codes have been modified to reflect the 

expanded eligibility.

Citizenship or Immigration Status

Temporary Waiver
GovDelivery Notice Dated January 9, 2023

Revised guidance for sourcing deposits in 

depository accounts:

• All recurring deposits, regardless of 

amounts

• All non-recurring deposits greater than 

$1,000

HB-1-3555, Chapter 9 Update
Notice of Eligible Area Map Review
HB-1-3555, Chapter 4 & 6 Updates
Reminder! Help save time by updating the 

information in GUS without manually 

inputting the change!

• Lenders can update an existing application 

using the import feature

• Ensure that the Lender Loan Number 

recorded in your LOS matches the Lender 

Loan Number in GUS

GUS Reminder
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HB-1-3555

Contact List SFHGLP (usda.gov) Have a question on 

POLICY?

Contact the PAC team!

Have a question on a 

SPECIFIC FILE?

Contact the OPD!

Need TRAINING?

Contact the LPA team!
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HB-1-3555 In-Person Training

St. Louis, MO 8/15-16

Lewisville, TX 9/12-13

Don’t forget to register 

via GovDelivery

USDA Lender & Servicing Training (govdelivery.com)
SFHGLP Product Training Support

sfhgld.lenderpartner@usda.gov
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www.rd.usda.gov

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