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Requirements are the same as for the 203(b) loan, i.e., the borrower must intend to make the property his/her principal residence Benefits: This program allows the borrower to finance in the cost of certain energy saving improvements. The cost of these improvements does not calculate into the maximum loan amount. The traditional ratios of 29 and 41 may be increased to 31 and 43 if the energy efficient measures are done. Nature of Program: It is assumed that the savings in energy costs will offset the additional mortgage payment caused by the improvements. Trained specialists called "Raters" are available to do a survey of the needs of the property, to recommend improvements and to inspect the final product. Any approved HUD lender can administer the program Contact: U.S. Dept. of Housing and Urban Development (Section 523 and 524) Eligibility: A private or public nonprofit organization that will provide the developed sites to qualified borrowers on a cost of development basis in open country and town of 10,000 population or less and places up to 25,000 population under certain conditions. Applicants from towns of 10,000 to 25,000 population should check with local RD office to determine if the agency can serve them. Benefits: To assist public or private nonprofit organizations interested in providing sites for housing, to acquire and develop land in rural areas to be subdivided as adequate building sites and sold on a cost development basis to families eligible for low- and very-low-income loans, cooperatives, and broadly based nonprofit rural rental housing applicants. Nature of Program: For the purchase and development of adequate sites, including necessary equipment which becomes a permanent part of the development; for water and sewer facilities if not available; payment of necessary engineering, legal fees, and closing costs; for needed landscaping and other necessary facilities related to building, such as walks, parking areas, and driveways. Restrictions: loan limitation of $200,000 without national office approval; loan funds may not be used for refinancing of debts, payment of any fee, or commission to any broker, negotiator, or other person for the referral of a prospective applicant or solicitation of a loan; no loan funds will be used to pay operating costs or expenses of administration other than actual cash cost of incidental administrative expenses if funds to pay those expenses are not otherwise available. Repayment of loan is expected within two (2) years. Contact: Local Office: Headquarters Office: (Section 515) Eligibility: Applicants may be individuals, cooperatives, nonprofit organizations, state or local public agencies or profit corporations, trusts, partnerships, limited partnerships, and with the exception of state or local public agencies, be able to finance the housing either with their own resources or with credit obtained from private sources on terms and conditions that allow rent or occupancy charges to be established within the payment ability of low- to moderate-income persons. However, applicants must be able to assume the obligations of the loan, furnish adequate security, and have sufficient income for repayment. They must also have the ability and intention of maintaining and operating the housing for purposes for which the loan is made and be willing to honor the long-term commitment associated with the 515 loan. Loans may be made in communities up to 10,000 people in Metropolitan Statistical Area (MSA) and some communities up to 20,000 population in non-MSA areas. Applicants in towns of 10,000 to 20,000 should check with the local RD office to determine if the agency can serve them. Benefits: To provide economically designed and constructed rental and cooperative housing and related facilities suited for rural residents. Nature of Program: Loans can be used to construct, purchase and substantially rehabilitate rental or cooperative housing or to develop manufactured housing projects. Housing as a general rule will consist of multi-units with two (2) or more family units and any appropriately related facilities. Funds may also be used to provide approved recreational and service facilities appropriate for use in connection with the housing and to buy and improve the land on which the buildings are to be located. Loans may not be made for nursing, special care, or institutional type homes. Contact: Local Office: (Section 502) Eligibility: Applicants must have repayment ability from an adequate and dependable available income that does not exceed the applicable income limit for the county and the number of persons in the household. The applicant must not own a dwelling which is not structurally sound; the dwelling must be functionally adequate or large enough to accommodate the needs of the applicant; be without sufficient resources to secure the necessary credit from other sources upon terms and conditions which the applicant could reasonably be expected to fulfill; be a natural person who resides as a citizen in any of the 50 states or its Territories or a noncitizen who is legally admitted for permanent residence; possess legal capacity to incur the loan obligations and reached the legal majority in the state; personally occupy the home on a permanent basis; have a credit history which indicates a reasonable ability and willingness to meet obligations as they become due. For direct loans, applicants must be eligible for interest credit and income may not exceed the low-income limits set forth for the county and number of persons in the household. The applicants income may not exceed the moderate income level for the county and number of persons in the household for a guaranteed loan. Benefits: Assists low-income rural families through direct loans to buy, build, rehabilitate, or improve decent, safe, and sanitary dwellings for use by the applicant as a permanent residence. Loan guarantees to lenders which otherwise would not make the loan are available. The guaranteed loans assist eligible households that do not exceed median income limits in obtaining adequate housing. Nature of Program: Direct loans may be used to buy, build, rehabilitate, improve or relocate a dwelling; purchase a minimum adequate site; provide adequate safe water supply and/or adequate sewage disposal facility; provide site preparation; provide special design features because of physical or disability. Single-family houses financed must be located in a rural area including any town, village, city or place which has a population not in excess of 10,000 or in certain circumstances a population not in excess of 20,000. Contact: Local Office: Headquarters Office: |
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