Lyn Graham is one of the few local mortgage originators offering the Guaranteed Rural Housing Loan. This is a great deal for many who dream of owning a home, but lack a traditional down payment to realize this dream. Guaranteed Rural Housing, or GRH, has many benefits that are lacking in today’s more stringent lending market.
Below are just of the few benefits of the rural housing program:
- No Down Payment Required
- 101% Loan to Value Ratio (100% plus 1% guarantee fee)
- Ability to finance closing costs
- No Monthly Mortgage Insurance
- Competitive rates
For the borrower to qualify, they must have a credit history that indicates a reasonable willingness to meet obligations as they come due. Their income cannot exceed the moderate-income limits for their area. Generally, the amount you can borrow is based on your monthly income. For example, your mortgage payment should account for no more than 29% of your gross monthly income. Your entire monthly debts, including your mortgage payment, car loans, student loans, and credit cards should be no more than 41% of your gross monthly income, not including child care, food, healthcare, and utilities.
Example Monthly Income (gross) $4,000 Your monthly mortgage payment should be no more than $1,160, including real estate taxes and homeowners insurance. Your total monthly debt, including the mortgage payment, and all other loans should be no more than $1,640.
Property Eligibility The GRH program is designed for homes that are located in a rural area. This means open country, and places with a population of 10,000 or less. In some cases, cities and towns with 10,000-25,000 will be considered. Eligible properties include new, or proposed home construction, and existing homes. Private well water quality must meet local and state codes.
If you would like to know if you will qualify for this program, contact Lyn Graham! I am your local Guaranteed Rural Housing expert!