Guaranteed Loan Program

Guaranteed Loan Program

What does this program do?
This program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

Who may apply for this program?
Applicants must:

  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria

What is an eligible area?
Check eligible addresses for the loan guarantees.

How may funds be used?
Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

How do we get started?
Applicants must contact an approved lender. Applicants can review a partial list of approved lenders and information about all of the approved lenders in your state can be obtained by contacting your state’s Guaranteed Loan Coordinator.

Who can answer questions?
Applicants with questions should contact an approved lender. Lenders with questions can contact a Guaranteed Loan Specialist in your state.

What governs this program?

Why does USDA Rural Development do this?
This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

Interesting facts

  • The Texas Guaranteed Student Loan Corporation (TG) was created by the Texas Legislature in 1979. TG is a public, nonprofit Corporation that administers the Federal Family Education Loan Program (FFELP). (The FFELP was formerly known as the Guaranteed Student Loan Program.)
  • The William D. Ford Federal Direct Loan Program (also called FDLP, FDSLP, and Direct Loan Program) provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education ... rather than a bank or other financial institution."
    Following the...

Additional information

US Small Business Administration Loan Guarantee Program Is
US Small Business Administration Loan Guarantee Program Is ...
Stephen Konkle -- Loan Guarantee Program for International
Stephen Konkle -- Loan Guarantee Program for International ...
My Guaranteed Student Loan (2010) Trailer
My Guaranteed Student Loan (2010) Trailer
The Best-Kept Secret to Improved Bank Profits: The Ultimate Banker's Guide to Making More Money, Doing Fewer Deals and Taking Less Risk That 99% of Bankers Aren't Doing Today
eBooks (The Financial Coach, LLC)
Business Development Specialists Group (BDSG) The SBA Loan & Grants Easy-Step 123 Kit Software Full Premium Gold 4.0 Program By BusinessLoanEasy
Software (Business Development Specialists Group (BDSG))
  • Prepares and Arranges SBA Loans & Grants Fast & Easy!
  • Full 100% Money Back Performance Guarantee - If you complete the steps in the program including the review process, let our accountants arrange the lender and are...
  • Includes: Full Services from our Staff & Handles Everything From A to Z
  • Includes Grant Writer & Connection Interface connecting you to every Grant in the U.S.
  • Includes Thousands of Recommended SBA Lenders & Grant Interface
USDA Loan Guarantee Programs
USDA Loan Guarantee Programs
Loan guarantee program for muLtifamiLy housing smaLL
Loan guarantee program for muLtifamiLy housing smaLL ...
Section 184 Indian Housing Loan Guarantee Program Updates
Section 184 Indian Housing Loan Guarantee Program Updates