Single Family Housing Programs

Single Family Housing Loan Guarantees (Section 502)

Private lenders work with HCFP to offer loans to individuals interested in building or purchasing a home.  Loans are made to individuals for up to 100% of the appraised value of the home.  Terms are for 30 years, and the interest rate is negotiated between the lender and the individual borrower.  (The interest rate on the loan must be fixed and cannot exceed the rate specified in the Notice of Funding Availability (NOFA) published yearly in the Federal Register.)  HCFP provides a guarantee to the lender of 90% of the worth of the loan.

Qualified lenders for the Single Family Housing Guaranteed Loan Program include any State housing agency; lenders approved by HUD, the U.S. Veterans Administration, Fannie Mae or Freddie Mac for certain purposes; Farm Credit System institutions; and lenders participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

For more information about the Single Family Housing Guaranteed Loan Program, click here.

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