1. www.rurdev.usda.gov/pa Thomas P Williams, State Director USDA RURAL DEVELOPMENT SINGLE FAMILY HOUSING INFORMATION SESSION

2. Mission Statement: “ Enhance the ability of rural communities to develop, to grow, and to improve their quality of life by targeting financial and technical resources in areas of greatest need through activities of greatest potential.”

3. RURAL DEVELOPMENT SINGLE FAMILY HOUSING PROGRAM INFORMATION SESSION Topics that will be covered:  502 Direct Loan Program  504 Home Repair Program  502 Guaranteed Loan Program

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6. 502 DIRECT LOAN PROGRAM Purpose: To provide low-income individuals or households the opportunity to buy or build a decent, safe, and sanitary dwelling.

7. 100% financing based on appraised value

8. ** 1% subsidized interest rate **

9. Only one time $25.00 credit fee No mortgage insurance, funding fee, organization fee or administration fee

10. No score required  Credit score of 640+ =fast track (If no bankruptcy, foreclosure, federal unsatisfied judgments or liens) CREDIT

11. How to Apply : 1 st Step

12. LOAN APPLICATION PACKAGERS A loan application packager, who has real estate and/or mortgage experience, may submit a complete loan application package on behalf of an applicant. Only a non-profit or public entity is eligible to receive a packaging fee for service.

13. 504 HOME REPAIR LOANS AND GRANTS PURPOSE: TO PROVIDE LOANS TO HOMEOWNERS TO REPAIR, IMPROVE, OR MODERNIZE THEIR HOMES OR PROVIDE GRANTS TO ELDERLY VERY-LOW INCOME HOMEOWNERS TO REMOVE HEALTH AND SAFETY HAZARDS.

14. 504 HOME REPAIR LOANS AND GRANTS Purpose: To provide assistance to very low income (50% of median income) owners of modest single-family homes in eligible rural areas. Loans for repairs to improve or modernize a home. make it safer or more sanitary, or remove health and safety issues. pay connection fees for public water and/or sewer. 1% interest rate, 20 years, maximum outstanding balance of $20,000. Grants For homeowners 62 and over who cannot repay a loan, grant funds are available to remove health or safety hazards, or remodel dwellings to make them accessible to household members with disabilities. $7,500 maximum lifetime grant.

15. (504) GUARANTEED LOAN PROGRAM Purpose: To assist low and moderate income (115% of median income) applicants to purchase new or existing homes. This is made possible by the guarantee of loans made by conventional lenders. Homebuyers make application directly with the participating lender.

16. Pennsylvania’s GRH Program consistently has one of the FASTED turn times in the industry! Average 2-3 business day turn time!!

17. MAJOR ADVANTAGES Partner with private sector lenders Can combine GRH with PHFA Not limited to 1 st time home buyers No cap on purchase price 102.75% pf appraised value can include repairs and rehab Reasonable allowances for applicants with less than 12 months at current employer (Ex: Remains in the same line of work, recent graduate or member of the military, re-entering the workforce after an absence to care of a family member, medical illness or other reasonable circumstance) Non-Taxable Income (child support, social security, etc.) can be grossed up 125% for repayment income purposes Deferred/Non-Fixed Payment Student Loans- Use only 1% of the outstanding loan balance

18. GUARANTEED RURAL HOUSING LOAN PROGRAM Eligible Loan Purposes: Purchase a new or existing single-family dwelling. Refinance existing GRH loans New construction must comply with applicable building codes. Must meet property standards of HUD Handbook 4000.1 Home must be located in an eligible area.

19. Maximum Loan Amounts: Applicant’s income and repayment ability will dictate the maximum loan amount. No county loan limit. Loan amount cannot exceed the appraised value of the property. Closing costs, guarantee fee, legal fees, title services, costs of establishing an escrow account, and other prepaid items may be included as long as the total loan does not exceed the appraised value. Loans may be for up to 100% of the appraised value plus guaranteed fee. 19

20. GUARANTEED RURAL HOUSING LOAN PROGRAM Loan Rates and Terms: 30 year term. Fixed interest rate set by approved lender  Rate can not be higher than the 30 year, 90 day actual / actual Fannie Mae rate plus 100 basis points. Fees: A one time Guarantee Fee of 2.75% of loan amount and.5% of average annual balance charged to the lender. (may be passed on to the applicant and may be financed) Mortgage insurance is not required. There is no limit on seller contribution to closing costs unless set by the lender.

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22. 2014 ACCOMPLISHMENTS 22

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25. GENERAL INFORMATION All funding has been received from the CR. Eligibility areas remain based upon 2010 census. Guaranteed program is centralized in RD State Office. Lenders send application packages to general mail box (pagrh@pa.usda.gov) 502 Program centralized. Applications returned to RD State Office for review, then sent to specialists in area offices for processing. Income and property eligibility site: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1 Rural Development, PA website: www.rd.usda.gov/pa

26. CONTACT INFORMATION 26 RD PA State Office Housing Line: (717) 237-2186 Chester.Pogorzelski@pa.usda.govChester.Pogorzelski@pa.usda.gov (717) 237-2277 David.Corwin@pa.usda.govDavid.Corwin@pa.usda.gov (717) 237-2279