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Guaranteed Rural Housing (GRH aka known as RHS)
The Guaranteed Rural Housing program; which is administered by the Rural Housing Service; which is a division of the United States Department of Agriculture (USDA), has a basic objective of assisting eligible households to obtain adequate, decent, safe, and sanitary dwellings for their own use in rural areas by guaranteeing sound rural housing loans which otherwise would not be made without a guarantee.
Program Benefits
- 100% financing based on the appraised value of the property. Actually you can borrow the 2% fee that they charge for the guarantee, making it 102%.
- No down payment requirements
- No monthly mortgage insurance payment requirements.
- There is no limit to the amount that the seller can pay for the borrower in closing costs and prepays.
- Borrower can receive gifts from disinterested third parties to assist in closing costs
- These are 30 year fixed interest rate loans.
- There are no first-time homebuyer requirements-however, the borrower can not own adequate housing at closing.
- There are no credit score requirements from RHS; however, all of our lenders are requiring a 640 score if you have scores.If you have no credit score we can use non-traditional credit such as rent, utilities, telephone, insurance etc. to establish credit. A true no score is one showing nothing on the credit report.
Program Negatives
- Household Income Limits
- Some Areas in Kentucky are not eligible for this loan. These areas are: Certain areas in the counties of: Boone; Bullitt; Campbell; Clark; Fayette: Hardin; Jefferson; Kenton; Madison; and Meade County. Plus certain areas in and around the Cities of: Ashland; Bowling Green; Fort Campbell; Henderson; Hopkinsville; Owensboro; and Paducah. click on this link to determine area eligibility and Income limits(guaranteed) http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
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