Lifeline for struggling rural homebuyers

by Donald Horne09 Sep 2015
Homebuyers in rural communities have been faced with challenges in securing loans, with a growing number of lenders steering those clients to the federal government’s Guaranteed Housing Program.

“The last several years have been challenging for homebuyers in rural communities,” says USDA Rural Development Wisconsin State Director Stan Gruszynski. “By partnering with local lenders like Carrington we are able to leverage our resources and overcome financial barriers in order to help rural communities move forward.”

Working with clients to help them take advantage of programs like the GHP are crucial to building business, says Carrington Mortgage Services Mortgage Lending Division Executive Vice President Ray Brousseau.

“As the industry does more to help potential borrowers understand how the lending process works and their specific responsibilities,” Brousseau told MPA, “the lenders' ability to meet the needs of a larger population and originate more loans to more customers will improve.”

The GRH program assists homebuyers in obtaining a 30-year fixed mortgage without the down payment typically required by conventional lenders and programs. GRH loans are financed through participating lenders, such as banks and credit unions, and are guaranteed by USDA Rural Development.

The amount of the mortgage is limited by the applicant’s repayment ability and can be made for up to 100% of the appraised value. There are no restrictions on the size or design of the home. Loan closing costs and repairs can often be financed with the home purchase. Eligible areas include rural regions and communities under 20,000 in population, and not part of a larger urban area. 

“Working with our lending partners across the state,” says Gruszynski, “we’ve made a difference to those rural families prepared to realize the responsibility and benefits of owning a home.”
 

COMMENTS

  • by Jeff | 9/9/2015 12:14:44 PM

    There is a little incorrect information. The amount of the mortgage, like any other mortgage, is based on the borrower's ability to repay, but the program also has household income limits, which will also be a determining factor in the mortgage amount. Population limits were also changed to a maximum of 30,000 plus some communities are now exempted from the restriction of being within an MSMA.

  • by vicky | 9/18/2015 1:11:28 AM

    thank you for this information.

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