If yours is among the families in search of a new home this summer but you can't find a lender willing to finance your mortgage, the USDA Rural Development Guaranteed Rural Housing loan program might be able to help you.
The program provides a guarantee for your home loan with no down payment needed. It is administered by a local lender who takes the application, processes it and determines the acceptability of the home to be financed.
Lyons Federal Bank in Lyons is among the banks which has partnered with USDA Rural Development to provided 54 Kansas homebuyers nearly $3.3 million in GRH loans over the past six years.
Benefits of the program include no down payment or mortgage insurance required, no cost or loan limitations, 30-year, fixed-rate mortgages and 100 percent financing. Funds can be used to purchase an existing home or to build a new home in a rural area. Eligible homes must be located in a community with a population of 20,000 or less.
To participate in the GRH program, individuals and families must meet the program's income eligibility requirements. In most cases a family of four with an adjusted annual income of up to $74,050 may qualify for a GRH loan.
Cathy Snadelec, vice president of Lyons Federal Bank said they like the GRH program because it is the best option available for clients in the communities the bank services.
"The program doesn't require a down payment on a home which is a huge relief to our lower-income clients," she said. "The partnership with USDA Rural Development has allowed several residents in our county to purchase a home and that keeps individuals in the rural areas to support local businesses and their community."
To see if your family might qualify for a GRH loan, you can contact USDA Rural Development regional offices in Garden City, Hays, Iola, Manhattan or Newton.
For additional information about this program or other USDA Rural Development programs, visit the Agency's website at www.rurdev.usda.gov/ks.