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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