Borrower Eligibility

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The borrower must not have sufficient assets to obtain other traditional conventional financing. The borrower may, however, qualify for an FHA or VA loan. In other words, applicants may have liquid assets and be eligible to participate in the GRH Program. Those assets, however, should not be sufficient to meet the down payment and closing cost requirements associated with a conventional uninsured mortgage product (LTV <=80%). This means applicants do have a choice of USDA-Guaranteed Rural Housing, FHA, VA, or a conventional mortgage product with private mortgage insurance.

•	The appraisal determines the maximum loan amount. The applicant may borrower up to 102% of the appraised value for purchase transactions, and 100.5% for a refinance transaction if the guarantee fee is included in the loan amount (financed).

•	Non-Occupying co-borrowers are NOT allowed.