Rural Home Loans (Direct Program)

What does this program do? Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

Who may apply for this program? A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt. Applicants must: • Be without decent, safe and sanitary housing • Have the legal capacity to incur a loan obligation • Be unable to obtain a loan from other resources on terms and • Meet citizenship or eligible noncitizen requirements conditions that can reasonably be expected to meet • Not be suspended or debarred from participation • Agree to occupy the property as your primary residence in federal programs

Properties financed with direct loan funds must: • Be modest in size for the area • Not have in-ground swimming pools • Not have market value in excess of the applicable area loan limit • Not be designed for income producing activities Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling. Applicants must meet income eligibility for a direct loan. Please contact your local RD office to ask for additional details about eligibility requirements.

What is an eligible area? How much may I borrow? Generally, rural areas with a population less than 35,000 are The maximum loan amount an applicant may qualify for eligible. Visit the USDA Income and Property eligibility will depend on the applicant’s repayment ability. The website for complete details. applicant’s ability to repay a loan considers various factors such as income, debts, assets and the amount of payment How may funds be used? assistance applicants may be eligible to receive. Regardless of repayment ability, applicants may never borrow more Loan funds may be used to help low-income individuals than the area’s loan limit (plus certain costs allowed to be or households purchase homes in rural areas. Funds can financed) for the county in which the property is located. be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Rural Home Loans (Direct Program)

What is the interest rate and Is there a deadline to apply? payback period? Applications for this program are accepted through • Fixed interest rate based on current market rates at loan your local RD office year round. approval or loan closing, whichever is lower. • The monthly mortgage payment, when modified How long does an application take? by payment assistance, may be reduced to as little Processing times vary depending on funding availability as an effective 1% interest rate. and program demand in the area in which an applicant is • Up to 33 year payback period - 38 year payback period interested in buying and completeness of the for qualifying applicants who can’t afford the 33 year application package. loan term. How much down payment is required? What law governs this program? No down payment is typically required. Applicants with • The Housing Act of 1949 as amended, 7 CFR, Part 3550 assets higher than the asset limits may be required to • HB-1-3550 - Direct Single Family Housing Loans Field use a portion of those assets. Office Handbook

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 Add contact information also contact your local office for assistance. You will find additional forms, resources, and program information at www.rd.usda.gov. USDA is an equal opportunity provider, employer, and lender.

Last Updated August 2019 Wisconsin

Direct INCOME LIMITS

County 1-4 Person Household 5-8 Person Household Brown $65,450 $86,400 Calumet $67,050 $88,500 Chippewa $58,650 $77,400 Columbia $62,650 $82,700 Dane $75,500 $99,650 Dodge $59,750 $78,850 Door $57,300 $75,650 Douglas $57,900 $76,450 Dunn $55,300 $73,000 Eau Claire $58,650 $77,400 Fond du Lac $60,250 $79,550 Green $61,500 $81,200 Iowa $59,700 $78,800 Jeﬀerson $61,850 $81,650 Kenosha $65,300 $86,200 Kewaunee $65,450 $86,400 La Crosse $62,900 $83,050 Marathon $58,550 $77,300 Manitowoc $55,100 $72,750 Monroe $55,350 $73,050 Oconto $55,350 $73,050 Outagamie $67,050 $88,500 Ozaukee $65,850 $86,900 Pepin $55,700 $73,500 Pierce $75,500 $99,650 Portage $61,300 $80,900 Racine $60,000 $79,200 Rock $54,700 $72,200 Sauk $56,400 $74,450 Sheboygan $61,500 $81,200 Trempealeau $56,250 $74,250 St. Croix $75,500 $99,650 Walworth $62,650 $82,700 Washington $65,850 $86,900 Waupaca $54,800 $72,350 Waukesha $65,850 $86,900 Wood $56,500 $74,600 Winnebago $62,550 82,550 All Other Counties* $54,700 $72,200 *Milwaukee County Is Ineligible For Rural Development Homeownership Programs

Rural Development • Wisconsin State Office 5417 Clem’s Way • Stevens Point, WI 54482 • (715) 345-7611 • [email protected]

07/22/2019 USDA is an equal opportunity provider, employer, and lender. Single Family Home Loan Guarantees

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

What is an eligible area? • A pro rata share of real estate taxes that is due and payable Check eligible addresses for the loan guarantees. 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. How may funds be used? • Essential household equipment such as wall-to-wall Funds backed by loan guarantees be used for: carpeting, ovens, ranges, refrigerators, washers, dryers, • New or existing residential property to be used as a heating and cooling equipment as long as the equipment permanent residence. Closing cost and reasonable/ is conveyed with the dwelling. customary expenses associated with the purchase may • Purchasing and installing measures to promote energy be included in the transaction. efficiency (e.g. insulation, double-paned glass and solar panels.) • A site with a new or existing dwelling. • Installing fixed broadband service to the household as • Repairs and rehabilitation when associated with the long as the equipment is conveyed with the dwelling. purchase of an existing dwelling. • Site preparation costs, including grading, foundation • Refinancing of eligible loans. plantings, seeding or sod installation, trees, walks, fences and driveways. • Special design features or permanently installed equipment to accommodate a household member who has a physical disability. How do we get started? • Reasonable and customary connection fees, assessments Applicants must contact an approved lender. Information or the pro rata installment cost for utilities such as water, about approved lenders may also be obtained by sewer, electricity and gas for which the buyer is liable. contacting a Guaranteed Loan Coordinator in your state for more information. Single Family Home Loan Guarantees

Who can answer questions? Why does USDA Rural Development Applicants with questions should contact an approved do this? lender. Lenders with questions can contact a Guaranteed This program helps lenders work with low and Loan Specialist in your state. moderate income families living in rural areas to make homeownership a reality. Providing affordable What governs this program? homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the 7 CFR, Part 3555 quality of life in rural areas.

Last Updated February 2015 Wisconsin GRH INCOME LIMITS

County 1‐4 Person Household 5‐8 Person Household Brown $94,100 $124,200 Calumet $96,400 $127,250 Chippewa $86,850 $114,650 Columbia $90,050 $118,850 Dane $108,550 $143,300 Douglas $92,600 $122,250 Eau Claire $86,850 $114,650 Fond du Lac $86,850 $114,650 Green $88,400 $116,700 Jeﬀerson $88,900 $117,350 Kenosha $93,850 $123,900 Kewaunee $94,100 $124,200 La Crosse $90,400 $119,350 Marathon $86,850 $114,650 Outagamie $96,400 $127,250 Ozaukee $94,650 $124,950 Pierce $108,550 $143,300 Portage $88,100 $116,300 Racine $86,850 $114,650 Sheboygan $88,400 $116,700 St. Croix $108,550 $143,300 Walworth $90,050 $118,850 Washington $94,650 $124,950 Waukesha $94,650 $124,950 Winnebago $89,900 $118,650 All Other Counes* $86,850 $114,650 *Milwaukee County Is Ineligible For Rural Development Homeownership Programs

Rural Development • Wisconsin State Oﬃce 5417 Clem’s Way • Stevens Point, WI 54482 • (715) 345‐7623 • Wisconsin‐[email protected]

07/22/2019 USDA is an equal opportunity provider, employer, and lender. Single Family Housing Repair Loans & Grants

What does this program do? Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve, or modernize their homes or provides grants to elderly very-low-income homeowners to remove health and safety hazards. Who may apply for this program? To qualify, you must: • Be the homeowner and occupy the house • Have a family income below 50 percent of the area median income • Be unable to obtain affordable credit elsewhere • For grants, be age 62 or older and not be able to repay a repair loan

What is an eligible area? Is there a deadline to apply? Generally, rural areas with a population less than 35,000 are Applications are available year round as long as funding is eligible. Applicants may check the address of their home to available, and are processed in the order they are received. determine eligibility online. How long does an application take? How may funds be used? Approval times depend on funding availability in your • Loans may be used to repair, improve, or modernize area. Talk to a USDA home loan specialist in your area for homes or to remove health and safety hazards. help with the application. • Grants must be used to remove health and safety hazards.

How much money can I get? How do I get started? Contact a USDA home loan specialist in your area. • Maximum loan is $20,000. • Maximum grant is $7,500. • Loans and grants can be combined for up to What law governs this program? $27,500 in assistance. • The Housing Act of 1949 as amended, 7 CFR, Part 3550 • HB-1-3550 - Direct Single Family Housing Loans and What are the terms of the loan or grant? Grants Field Office Handbook • Loans can be repaid over 20 years • Loan interest rate is fixed at 1%. • Full title service is required for loans of $7,500 or more • Grants have a lifetime limit of $7,500. • Grants must be repaid if the property is sold in less than 3 years • If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination

Last Updated September 2015 Wisconsin Home Repair INCOME LIMITS

County 1-4 Person Household 5-8 Person Household Brown $40,900 $54,000 Calumet $41,900 $55,350 Chippewa $36,650 $48,400 Columbia $39,150 $51,700 Dane $50,200 $66,300 Dodge $37,350 $49,350 Door $35,800 $47,300 Douglas $36,200 $47,800 Dunn $34,550 $45,650 Eau Claire $36,650 $48,400 Fond du Lac $37,650 $49,700 Green $38,450 $50,800 Iowa $37,300 $49,250 Jeﬀerson $38,650 $51,050 Kenosha $40,800 $53,900 Kewaunee $40,900 $54,000 La Crosse $39,300 $51,900 Marathon $36,600 $48,350 Manitowoc $34,450 $45,500 Monroe $34,600 $45,700 Oconto $34,600 $45,700 Outagamie $41,900 $55,350 Ozaukee $41,150 $54,350 Pepin $34,800 $45,950 Pierce $50,000 $66,000 Portage $38,300 $50,600 Racine $37,500 $49,500 Rock $34,200 $45,150 Sauk $35,250 $46,550 Sheboygan $38,450 $50,800 Trempealeau $35,150 $46,400 St. Croix $50,000 $66,000 Walworth $39,150 $51,700 Washington $41,150 $54,350 Waupaca $34,250 $45,250 Waukesha $41,150 $54,350 Wood $35,300 $46,600 Winnebago $39,100 $51,650 All Other Counties* $34,200 $45,150 *Milwaukee County Is Ineligible For Rural Development Homeownership Programs

Rural Development • Wisconsin State Office 5417 Clem’s Way • Stevens Point, WI 54482 • (715) 345-7611 • [email protected]

07/22/2019 USDA is an equal opportunity provider, employer, and lender. Multi-Family Housing Loan Guarantees

What does this program do? The program works with qualified private-sector lenders to provide financing to qualified borrowers to increase the supply of affordable rental housing for low- and moderate-income individuals and families in eligible rural areas and towns. Who may apply for this program? Private lenders may apply for a loan guarantee on loans made • For-profit organizations, including LLC’s to an eligible borrower who is unable to obtain commercial • Federally recognized Tribes credit on reasonable terms without the guarantee. Additional requirements include: Eligible lenders must be approved and active in one of the following programs: • Rent for individual units is capped at 30 percent of 115 percent area median income. • Fannie Mae, Freddie Mac, Ginnie Mae • Average rent for an entire project (including tenant paid • HUD utilities) cannot exceed 30 percent of 100 percent of area • Federal Home Loan Bank members medium income, adjusted for family size. • State or local housing finance agencies • Complexes must consist of at least five units. Eligible borrowers include: • Complexes may contain units that are detached, semi- • Most state and local governmental entities detached, row houses or multi-family structures. • Nonprofit organizations

What is an eligible area? What are the terms of a loan guarantee? Areas that may be served include: • The Agency offers guarantees of up to 90 percent of the Rural areas and towns with 35,000 or fewer loan amount. people - Check eligible addresses. • For-profit entities may borrow up to 90 percent and • Federally recognized Tribal lands. nonprofit entities may borrow up to 97 percent of the total development cost or appraised value, whichever is less. How may funds be used? • Minimum term of 25 years and maximum term of 40 years. Construction, improvement and purchase of multi-family rental housing for low to moderate income families and • Interest rate negotiated between the lender and the individuals is the primary objective for this program. borrower is fixed for the life of the loan guarantee. Funding may also be available for: • Buying and improving land. Who will service the loan? • Providing necessary infrastructure. Loans guaranteed through this program are serviced through the private lender that makes the loan, just • For a complete list see Code of Federal Regulations, as they would be without a guarantee. 7CFR Part 3565.205. Multi-Family Housing Loan Guarantees

Who may live in the rental housing? Who can answer questions? • Low- to moderate- income families or individuals. Contact your State Rural Development office or • Is there a list of qualified private lenders in my area? you can find Rural Rental Properties here to apply as a tenant. • Contact your RD office for a current list of lenders participating in the program. What governs this program? • Code of Federal Regulation, 7CFR Part 3565 How do we get started? • HB-1-3565 Applications for this program are accepted on an annual basis. A Notice of Funding Availability (NOFA) is posted in • This program is authorized by Title V of the Housing the Federal Register. Act of 1949

Last Updated February 2015 Housing Preservation Grants

What does this program do? It provides grants to sponsoring organizations for the repair or rehabilitation of housing occupied by low- and very-low-income (1) people.

Who may apply for this program? • Most State and local governmental entities • Federally recognized Tribes • Nonprofit organizations • Individual homeowners are not eligible

What is an eligible area? How do we get started? Areas that may be served include: Applications are accepted on an annual basis through a • Rural areas and towns with 20,000 or fewer Notice of Funding Availability (NOFA) in the Federal Register. people - Check eligible addresses • Federally Recognized Tribal lands Who can answer questions? Contact your RD State office. How may funds be used? • Applicants provide grants or low-interest loans to repair What law governs this program? or rehabilitate housing for low- and very low-income (1) • Code of Federal Regulation, 7 CFR 1944-N homeowners • RD Instruction 1944-N • Rental property owners may also receive assistance if they agree to make units available to low- and very • RD Instruction 1940-L, Methodology and Formulas for low-income (1) families Allocation of Loan and Grant Program Funds • Eligible expenses include: • RD Instruction 1940-G, Environmental Program ° Repairing or replacing electrical wiring, foundations, • RD Instruction 1901-E, Civil Rights Compliance roofs, insulation, heating systems and water/waste Requirements disposal systems • This program is authorized by Title V of the Housing ° Handicap accessibility features Act of 1949 ° Labor and materials ° Administrative expenses ° For a complete list, see Code of Federal Regulations (CFR) 1944.664

Last Updated September 2015