The U.S. Department of Agriculture Rural Development knows rural Nevada and the people who live there.
In the past year, USDA has gotten to know 804 families in rural Nevada who have purchased their homes using the Guaranteed Home Loan Program. So far this fiscal year, USDA Rural Development has invested more than $132 million in rural home loans, breaking its own record for rural Nevada homeownership for the second year in a row.
In Churchill County, USDA Rural Development has invested $2.96 million in 22 guaranteed home loans this fiscal year.
The Guaranteed Home Loan Program provides a guarantee to private lenders who make the mortgage loan. The program provides 100% financing and works well in concert with other programs, such as Nevada Rural Housing Authority’s mortgage credit certificate, or 4% down payment assistance program.
Housing Program Director Bill Brewer is amazed that the program is continuing to grow in spite of other factors affecting the housing market. “We saw last year as a record-breaking year, but I never thought that would continue at the rate it has,” says Brewer. He sees the Guaranteed Program’s partnership with mortgage lenders, brokers, and other state agencies, as key to the program’s success.
“The Guaranteed Program supports a significant revenue stream within the realty business in the state,” Brewer said. “We work closely with lenders to make sure the program is working for them, and they are happy to be able to show moderate income homebuyers a loan with 100% financing.”
The Guaranteed Program’s flexibility is another key feature, including recent streamlining that allows existing USDA homeowners to refinance homes at today’s rates. Another aspect of the Guaranteed Loan that makes sense administratively, was the addition of a small annual fee in order to make the loan program pay for itself. “Although the 2 percent origination fee was already in place and can be rolled into the overall mortgage, the annual 4/10 of a percent fee on the remainder of the mortgage has helped make the program sustainable for the long term,” Brewer said.