12

What types of homes can be built and financd 

with Rural Development?

Site Built Homes

Built from the ground up and built entirely at the home site.

Conforms to all state, local, or regional codes where the home is 

located.

Often called a “stick-built” home.

A well built, cared for site-built home generally increases in value 

over time.

Modular Homes

Built in modules at a factory. 

Built to conform to all state, local, or regional building codes at their 

destinations. 

Modules are transported to the home site on truck beds, then joined together by 

local contractors.

Local building inspectors check to make sure the structure meets requirements 

and that finish work is done properly.

Modular homes are sometimes less expensive per square foot than site built 

homes. 

A well-built modular home should have the same longevity as its site-built 

counterpart, increasing in value over time.

Manufactured Homes

Built in a factory.

Conform to a federal building code, called the HUD code, rather than to 

building codes at their destinations.

Homes are built on non-removable steel chassis.

Sections are transported to the home site on their own wheels.

Multi-part units are joined at their destinations. 

Segments are not always placed on a permanent foundation, but they must 

be on a permanent foundation to qualify for Rural Development financing.

Building inspectors check the work done locally (electric hook-ups, etc.), but 

they are not required to approve the structure.

Manufactured housing is generally less expensive than site-built and 

modular homes.

Manufactured homes often decrease in value over time.

Only NEW manufactured homes built by approved dealer-contractors 

qualify for Rural Development financing. For a list of approved dealers, 

LOG ON: www.rurdev.usda.gov/fl/guarrhs.htm

Mobile Homes

These are not attached to a permanent foundation and are NOT eligible 

for any financing program through Rural Development. 

Real Estate 

Professionals Guide 

to Rural Development 

Financing

Rural Development finances dreams! 

www.rurdev.usda.gov/fl/guarrhs.htm
2

At USDA Rural Development 

we don’t work for the government—

we work for the people! 

EXPAND CUSTOMER BASE 

WITH GUARANTEED LOANS 

OFFERING:

100% LTV

Not limited to lesser of contract or appraisal

(wrap in closing costs)

No cash reserve requirement

No minimum FICO score. Alternate credit is acceptable.

No cap on ratios. 660 FICO is excellent compensating factor.

No limitation on source of closing costs.

Can use unrestricted gifts, SHIPP, HOME. 

No need to document gifts

Competitive prime rate

Any mortgage lender may participate without special RD 

approval

11

Rural Development + You = A Rewarding Partnership 

At Rural Development we invest in people, families, businesses, 

and communities. We are committed to supporting rural 

communities. 

Rural Development cannot do this alone. We need dedicated 

lenders, real estate professionals, builders, contractors, 

appraisers, and other professionals to help us achieve our 

mission. 

Helping more people achieve the dream of homeownership —

the ultimate American dream — is a worthwhile and rewarding 

experience. We want you to join us by offering the best 

financing programs to the rural citizens of Florida. 

Together we can serve more people! 

Together we can make a difference! 

Ideas to Boost Your Business! 

Who can you partner with to make your business stronger? 

Insurance agents: Renters buy insurance. Partner up to get a list of 

prospects! What client does the agent have who only buys auto insurance? 

Most people buy all their insurance from one agent to cash in on discounts 

for multiple policies. Their client may also be a renter looking for a home. 

Certified Financial Planners work with all types of borrowers. When their 

clients decide to move from apartment to home, to a larger home, to 

investment properties, where will they refer that client? You could also 

send clients in your database their way. 

Accountants are busy working for all types clients who are renters and 

homebuyers. Having access to their database is a fantastic way to 

prospect. Accountants may, in turn, offer all of your past clients a discount 

on filing a return with them to increase their business. 

Attorneys represent buyers and sellers, as well as work with divorces and 

estates. These are all people in need of real estate and lending assistance. 

These are some of the business professionals with whom it would be a 

good idea to form alliances. Be prepared to GIVE prospects before you 

RECEIVE! 
10

To determine property eligibility, log onto the website and... 

1. On the left menu under “Property Eligibility,” click on “Single 

Family Housing.” 

2. Click “Accept” to move forward to the property site. 

3. IF YOU HAVE AN ADDRESS, type in the complete address including 

zip code. 

4. Click “Get Map.” The address will be mapped to its exact location 

AND indicate whether or not it is in an eligible area. 

5. IF YOU HAVE NO ADDRESS, click on Florida in the US Map. 

7. If the “quick list” to the right does NOT list the county in which you 

 are interested, all property in the county is eligible. If the county is 

 listed, click on the name to see the ineligible area(s) within the 

 county. 

Shaded (orange) area is not eligible; lightly shaded area

 is eligible

Zoom in on the map for more detail if necessary

FLORIDA HAS 67 COUNTIES 

ONLY Broward, Monroe, and Pinellas counties are NOT eligible.

To determine income eligibility:

1. Click on “single family” under “Income Eligibility” (on the left)

2. Choose your state and county

3. Fill in blanks for family and income information

4. Look for the conclusion “ELIGIBLE FOR”

In less than 2 minutes, you can determine if your client is income 

eligible. If the conclusion says they are eligible for BOTH the 

Guaranteed and Direct loan, you should recommend they contact their 

local RD office.

Where are the regulations? 

For detailed information on what counts (or not) for income and the 

deductions, go to www.rurdev.usda.gov/regs, click on “Instructions”, 

Look for the Instruction 1980-D.

 CALL YOUR LOCAL RURAL DEVELOPMENT OFFICE

FOR ASSISTANCE! 

WE’RE HERE TO HELP! 

Log onto http://eligibility.sc.egov.usda.gov

Save the link as a favorite for future reference! 

What resources are 

available on the web? 

3

What types of home financing 

does Rural Development offer? 

Rural Development offers two separate homeownership 

programs. This guide is designed to give you a working 

knowledge of those programs and makes it easier for you to 

assist your clients. 

Guaranteed Financing

100% financing

Clients work with a participating traditional mortgage 

 lender of their choice.

Normal timeframe for purchase contracts and closings

No monthly mortgage insurance 

Competitive fixed 30 year interest rates

Generous income limits

No maximum purchase price limit 

NO RECAPTURE! Recapture is never a factor with 

guaranteed financing.

Homes must meet FHA minimum property standards per 

HUD Handbook 4150.2. Practically conventional! 

 Direct Loan Financing 

100% financing 

Client works with local Rural Development office for the 

loan. 

Closing timeframe MAY be longer (45-60 days).

Maximum purchase price limits vary by county. 

Very low to low income limits apply.

Competitive fixed rates—33-38 year loan terms 

SOME CLIENTS MAY QUALIFY FOR SUBSIDIZED 

PAYMENTS. When the government is helping them make 

their monthly housing payments, they could be subject to 

recapture upon selling the home. 

Homes are inspected and repairs may be necessary to 

place the home in a “like new” condition. Repair costs 

may be rolled into the loan and completed after closing. 

Funding is subject to availability each fiscal year. 

Keep reading to find out WHY the programs are 

structured this way so that you can help more 

clients buy the home they want! 
4

Managing the Guaranteed 

Loan Transaction

Timeframe: 3 to 6 weeks 

Normal purchase contract time 

1. Clients meet with a participating mortgage lender of their 

choice to determine if they qualify. 

2. Clients go house shopping and enter into a purchase

 contract.

3. Clients sign loan documents with the lender.

4. Lender orders the appraisal.

5. Lender contacts the agent, seller, and client IF there are 

any necessary repairs or predications. Repairs can be 

completed prior to closing OR funds are escrowed at 150% 

of the estimated cost for repairs to be completed after 

 closing.

6. Lender submits the underwritten loan package to the 

 local Rural Development office for guarantee review. 

 Rural Development issues a conditional commitment to 

 the lender.

NOTE: Underwriting lenders are now signing up for the 

Agency’s new web based processing system. 

 

7. Lender closes the loan and submits the guarantee fee to 

 Rural Development.

8. Rural Development issues the guarantee to the lender.

9. Lender services the loan.

That’s all! 

Guaranteed financing is fast and flexible! 

9

FLORIDA/VIRGIN ISLANDS OFFICE DIRECTORY BY COUNTY

There are six(6) Area offices and two sub offices.

USEFUL WEB SITES:

Www.rurdev.usda.gov/fl/guarrhs.htm; www.rurdev.usda.gov/fl

http://eligibility.sc.egov.usda.gov; www.rurdev.usda.gov/rhs

Www.rurdev.usda.gov/regs (find directives and regulations)

7 OFFICE PH

COUNTY LOCATION PHONE # EXT FAX #

Liberty Marianna (850) 526-2610 5 (850) 526-2849

Madison Lake City (386) 719-5590 7 (386) 754-4139

Manatee N. Ft. Myers (239) 997-7331 4 (239) 997-1425

Marion Ocala (352) 732-7534 5 (352) 732-9728

Martin N. Fort Myers (239) 997-7331 4 (239) 997-1425

Monroe NOT ELIGIBLE

Nassau Lake City (386) 719-5590 7 (386) 754-4139

Okaloosa Crestview (850) 682-2416 4 (850) 682-8731

Okeechobee N. Fort Myers (239) 997-7331 4 (239) 997-1425

Orange Davenport (863) 420-4833 7 (863) 424-7333

Osceola Davenport (863) 420-4833 7 (863) 424-7333

Palm Beach N. Fort Myers (239) 997-7331 4 (239) 997-1425

Pasco Davenport (863) 420-4833 7 (863) 424-7333

Pinellas NOT ELIGIBLE

Polk Davenport (863) 420-4833 7 (863) 424-7333

Putman Ocala (352) 732-7534 5 (352) 732-9728

Santa Rosa Crestview (850) 682-2416 4 (850) 682-0096

Sarasota N. Ft. Myers (239) 997-7331 4 (239) 997-1425

Seminole Ocala (352) 732-7534 5 (352) 732-9728

St. Croix St. Croix, VI (340) 773-9146 4 (340) 692-9607

St. Johns Lake City (386) 719-5590 7 (386) 754-4139

St. Johns(VI) St. Croix, VI (340) 773-9146 4 (340) 692-9607

St. Lucie N. Fort Myers (239) 997-7331 4 (239) 997-1425

St. Thomas St. Croix, VI (340) 773-9146 4 (340) 692-9607

Sumter Ocala (352) 732-7534 5 (352) 732-9728

Suwannee Lake City (386) 719-5590 7 (386) 754-4139

Taylor Lake City (386) 719-5590 7 (386) 754-4139

Union Lake City (386) 719-5590 7 (386) 754-4139

Volusia Ocala (352) 732-7534 5 (352) 732-9728

Wakulla Marianna (850) 526-2610 5 (850) 526-2849

Walton Crestview (850) 682-2416 4 (850) 682-8731

Washington Marianna (850) 526-2610 5 (850) 526-2849
8

FLORIDA/VIRGIN ISLANDS OFFICE DIRECTORY BY COUNTY

OFFICE PH

COUNTY LOCATION PHONE # EXT FAX #

Alachua Ocala (352) 732-7534 5 (352) 732-9728

Baker Lake City (386) 719-5590 7 (386) 754-4139

Bay Marianna (850) 526-2610 5 (850) 526-2849

Bradford Lake City (386) 719-5590 7 (386) 754-4139

Brevard Davenport (863) 420-4833 7 (863) 424-7333

Broward NOT ELIGIBLE

Calhoun Marianna (850) 526-2610 5 (850) 526-2849

Charlotte N. Fort Myers (239) 997-7331 4 (239) 997-1425

Citrus Ocala (352) 732-7534 5 (352) 732-9728

Clay Lake City (386) 719-5590 7 (386) 754-4139

Collier N. Fort Myers (239) 997-7331 4 (239) 997-1425

Columbia Lake City (386) 719-5590 7 (386) 754-4139

Dade NOT ELIGIBLE 

DeSoto N. Fort Myers (239) 997-7331 4 (239) 997-1425

Dixie Ocala (352) 732-7534 5 (352) 732-9728

Duval Lake City (386) 719-5590 7 (386) 754-4139

Escambia Crestview (850) 682-2416 4 (850) 682-0096

Flagler Ocala (352) 732-7534 5 (352) 732-9728

Franklin Marianna (850) 526-2610 5 (850) 526-2849

Gadsden Marianna (850) 526-2610 5 (850) 526-2849

Gilchrist Ocala (352) 732-7534 5 (352) 732-9728

Glades N. Fort Myers (239) 997-7331 4 (239) 997-1425

Gulf Marianna (850) 526-2610 4 (850) 526-7534

Hamilton Lake City (386) 362-2681 4 (386) 754-4139

Hardee N. Fort Myers (239) 997-7331 4 (239) 997-1425

Hendry N. Fort Myers (239) 997-7331 4 (239) 997-1425

Hernando Davenport (863) 420-4833 7 (863) 424-7333

Highlands N. Fort Myers (239) 997-7331 5 (239) 997-1425

Hillsborough Davenport (863) 420-4833 7 (863) 424-7333

Holmes Crestview (850) 682-2416 4 (850) 682-0096

Indian River N. Fort Myers (239) 997-7331 4 (239) 997-1425

Jackson Marianna (850) 526-2610 5 (850) 526-2849

Jefferson Marianna (850) 526-2610 5 (850) 526-2849

LaFayette Lake City (386) 719-5590 7 (386) 754-4139

Lake Ocala (352) 732-7534 5 (352) 732-9728

Lee N. Fort Myers (239) 997-7331 4 (239) 997-1425

Leon Marianna (850) 526-2610 5 (850) 526-2849

Levy Ocala (352) 732-7534 5 (352) 732-9728

5

Guaranteed Financing: 

Best 100% Loan Option on the 

Market! 

NO MATTER HOW YOU DO IT— 

SOLD IS A FANTASTIC FEELING! 

The Guaranteed Program is fast and easy. Here are a 

few more highlights that make it the BEST option! 

#1: TRULY A 100% PRODUCT

 Closing costs, major repairs, etc. may be rolled into 

 the loan when appraised value is more than contract price.

#2: FLEXIBLE CREDIT/QUALIFYING RATIOS

 No minimum credit score, lenders determine client

 eligibility. Non-traditional credit histories are accepted.

 Expanded qualifying ratios based on good sense.

 

 RURAL DEVELOPMENT HELPS GET DEALS DONE! 

#3: FLEXIBLE APPRAISALS

 New guidance on HUD Handbook 4150.2 allows appraisers 

 deemed qualified by the lender to determine if minimum

 property standards are met. The lender will 

 determine if any reported deficiencies require repair. 
6

Understanding the 

Direct Loan Transaction

1. Clients meet with Rural Development to apply for financing. 

2. Rural Development orders a credit report, verification of 

 employment and verification of rent.

3. Rural Development interviews the clients and issues a 

 Certificate of Eligibility for a specific pre-qualified amount. 

 The certificate is valid for 45 days and may be extended up to 

 60 additional days upon request AND AVAILABILITY OF

 FUNDS. 

4. Clients may enter into a sales contract on a home (PLEASE 

 ALLOW AMPLE TIME TO CLOSE—WRITE THE CONTRACT

 FOR 45-60 DAYS MINIMUM.) If you are concerned about the 

 availability of funds prior to signing a contract, call your 

 local Rural Development office for fund verification. 

5. Rural Development performs a walk-through of the home. 

6. Clients choose a Florida licensed home inspector to do the 

inspection. Rural Development uses the inspection to ensure the 

house meets structural, mechanical standards. 

7. Rural Development reviews the home inspection and determines 

what repairs may be necessary. 

8. Clients get estimates from contractors of their choice to make the 

necessary repairs. 

9. Rural Development orders the appraisal and submits the repair 

specifications to the appraiser who determines a 

“subject to repairs” value. 

10. Repairs are made to bring the home into “like new” condition or 

funds for repairs may be held in escrow. REPAIRS DO NOT HAVE 

TO BE COMPLETED PRIOR TO CLOSING. 

11. Closing is held at a title company of the buyer’s or seller’s choice. 

Timeframe: 5-8 weeks

Direct housing loans are very popular.

Borrowers should call early in the fiscal year 

because funding is limited.

7

 Q: Why are the guaranteed and 

 direct loans so different? 

A: The programs address the 

clients’ specific needs. 

Direct vs. Guaranteed

Because direct loan clients have lower incomes and limited 

assets, Rural Development wants the home to be free of any 

“surprises” that can drain a bank account quickly. 

EXAMPLE: If you came home tonight and your furnace did not 

work, you would consider buying a new furnace a major repair. 

Rural Development is more “picky” about the condition of direct 

loan homes because a major repair could be financially 

paralyzing for our direct clients. 

Guaranteed clients have moderate incomes, and there is no 

limit to the assets they may hold. If a major repair occurs, they 

are more likely to be in a position to afford the cost of repairs. 

Minimum property standards for guaranteed loans are not as 

strict as standards for direct loans. 

Direct clients may qualify to have their payments subsidized, 

which means their payments will be lower because the 

government is helping them make their house payment. 

Therefore, when they sell the home, they may need to pay a 

recapture. This is only fair. Why should the clients take money 

at the closing that they did not contribute? 

Guaranteed clients get their loans from participating mortgage 

lenders. NO RECAPTURE IS EVER DUE! Guaranteed clients 

must make full payments to the lender of their choice. 

 

Do you have clients who cannot qualify for financing 

with a lender? Maybe they could qualify for a direct 

housing loan!