Handbook
| American Recovery and Reinvestment Act Program Guide | |||||||||
| Rural Housing Insurance Fund Program | |||||||||
| Progress Indicator |
|
||||||||
| Federal Program Information | |||||||||
| Federal Program Description |
Direct and guaranteed loans for use in rural areas to buy, build, or improve a permanent residence. New manufactured homes may be financed when they are on a permanent site, purchased from an approved dealer or contractor, and meet other requirements.
Eligible properties must be located in an eligible rural area.
Applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI); low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI.
Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history.
Guaranteed loans are amortized over 30 years. The interest rate is negotiated with the lender.
|
||||||||
| CFDA Number | 10.410 | ||||||||
| Assistance Type | Direct Loans | ||||||||
| ARRA Citation | Division A, Title I, H.R. 1-3 | ||||||||
| ARRA Reporting |
|
||||||||
| Federal Agency | Department of Agriculture | ||||||||
| NYS Information | |||||||||
| NYS Program Title | Rural Housing Insurance Fund Program - Section 502 Direct & Guaranteed Loans | ||||||||
| NYS Agency | DHCR- No NYS Program, DHCR serves as a referral to Federal Guidance. | ||||||||
| Contact | Gary Hallock | ||||||||
| GHallock@nysdhcr.gov | |||||||||
| Phone | 518-474-3022 | ||||||||
| Program Funding | |||||||||
| National Total | ARRA appropriates $67 million for Section 502 Direct Loans (which will support an additional $1 billion in Section 502 direct lending) and $133 million for Section 502 Unsubsidized Guaranteed Loans (which will insure an additional $10.472 billion in unsubsidized guaranteed lending). | ||||||||
| NYS Share | Unspecified | ||||||||
| Flow of Funds |
For Section 502 Direct Loans – a prospective homeowner applies directly to the USDA/RD field office which makes and holds the mortgage – funds flow from USDA Washington through the USDA field office to the individual borrower. For Section 502 Unsubsidized Guaranteed Loans – a prospective homeowner applies directly to an approved commercial lender who pays USDA/RD a fee in return for which USDA/RD insures a portion of the mortgage – federal appropriations and lender fees capitalize an insurance loss reserve fund. |
||||||||
| Deadline | 9/30/2010 | ||||||||
| Awards and Outcomes | |||||||||
| Website | http://www.recovery.gov/transparency/pages/home.aspx?State=NY | ||||||||
