Section 502 Guaranteed Rural Housing Loan Program Overview

The Section 502 Guaranteed Rural Housing Loan Program is a fantastic option for those looking to purchase, build, or improve a home in a rural area. This program offers favorable loan terms, including a low interest rate and a low down payment requirement.

To be eligible for the program, you must have a low to moderate income and purchase or build a home in a rural area. The program is designed to help low-income individuals and families achieve homeownership.

The loan amount is based on the home's value and the borrower's income, with a maximum loan amount of $300,000. This can be a significant advantage for those who may not have the funds for a larger down payment.

The Section 502 Guaranteed Rural Housing Loan Program is a government-backed loan program that provides affordable housing options for low-income individuals living in rural areas.

This program is designed to help low-income borrowers purchase, build, or improve homes in rural areas where housing options are limited.

The program offers a 100% financing option, meaning borrowers can purchase a home without making a down payment.

Borrowers can use the loan to purchase a home, build a new home, or make improvements to an existing home.

The loan can be used to purchase a home with a maximum value of $30,000 or a mobile home with a maximum value of $20,000.

The program has income limits that vary by county, but generally, borrowers must have a gross income that does not exceed 50% of the area median income.

The Section 502 Guaranteed Rural Housing Loan Program offers flexible guidelines for borrowers who want to purchase a home in a rural area. This program is perfect for those who don't have a lot of money saved up for a down payment.

One of the key benefits of this program is that it allows borrowers to include closing costs in the loan amount under certain circumstances, subject to program restrictions. This can be a huge help for people who need to cover additional expenses related to buying a home.

Here are some of the specific benefits of the Section 502 Guaranteed Rural Housing Loan Program:

Delivery Requirements are crucial to ensure a smooth loan delivery process. Section 502 Guaranteed first mortgage loans require a special feature code of 087.

To report the correct special feature code, you need to know the type of loan. For example, if the subject property is a manufactured home, you'll need to report both 087 and 235.

The RD Section 502 Leveraged (Blended) Loan Program requires a combination of special feature codes, specifically 118 and 220.

Here's a summary of the special feature codes required for different loan types:

Note that Section 502 loans are assumable as of the note date, and when selling such loans to Fannie Mae, the Assumption Indicator in the Loan Delivery application must be "True" (which means assumable).

The Section 504 regulations require grantees to ensure that their single-family housing direct programs are accessible to people with disabilities.

Grantees must provide reasonable accommodations and modifications to ensure equal access to the program for people with disabilities.

The regulations also require grantees to develop a plan to ensure equal access to the program for people with disabilities.

This plan must include procedures for providing reasonable accommodations and modifications, as well as procedures for resolving complaints of discrimination.

Grantees must also ensure that their program is accessible to people with disabilities, including those with mobility impairments, visual impairments, and hearing impairments.

The regulations also require grantees to provide auxiliary aids and services, such as sign language interpreters and Braille materials, to ensure equal access to the program.

The Kentucky Program is designed to help low-income residents in rural areas purchase, build, or improve homes.

It provides a 1% interest rate for the first 20 years of the loan, making it a very affordable option for those who qualify.

This program is a great example of how the Section 502 Guaranteed Rural Housing Loan Program can benefit individuals in specific states, in this case, Kentucky.

In Kentucky, the program is administered by the Kentucky Housing Corporation, which works to ensure that the program is accessible to those who need it most.

The Kentucky Program has been successful in helping hundreds of families in rural Kentucky purchase homes and start building a better life for themselves.

To qualify for a Section 502 Guaranteed Rural Housing loan, borrowers must meet certain requirements. These loans are designed for those who need flexibility with down payment and reserve requirements.

Borrowers who want to include closing costs in the loan amount under specific circumstances may also be eligible. This is subject to GRH Section 502 program restrictions, so it's essential to review the program's guidelines.

People who need flexibility with no cash-out refinancing as permitted under the GRH Section 502 program are also eligible. This can be a significant benefit for those who want to refinance their existing mortgage without taking out additional cash.

The following groups may benefit from the Section 502 Guaranteed Rural Housing loan program: