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Loan Programs

USDA Home Loan Program

Low interest, fixed-rate Homeownership loans are provided to low income qualified persons directly by USDA Rural Development. Financing is also offered at fixed-rates and terms through a loan from a private financial institution and guaranteed by USDA Rural Development for low to moderate income qualified persons. Neither one of these home loan programs require a down payment. Contact RCCR at (304) 346-6398 if you are interested in hearing more about the USDA Guaranteed or 502 Direct Programs or to start the application process.

USDA Guaranteed Loan Program
USDA 502 Direct Loan

The United States Department of Agriculture (USDA) Guaranteed Loan is for moderate- income applicants in rural areas who are unable to obtain adequate housing through conventional financing. Applicants may obtain 100% financing to purchase an existing home, purchase a site and construct a home, or purchase a newly constructed home located in a rural area. Mortgage payments are based on the household’s adjusted income.

How to Check for Property Eligibility

To be eligible for a USDA Guaranteed Loan the property must be deemed rural by the USDA. To see if a prospective property qualifies visit the USDA Income and Property Eligibility Site. Once there select “Single Family Housing Guaranteed” and it will take you to a map where you can enter the address of the property.

RCCR offers housing services for the West Virginian Counties of Cabell, Kanawha, Boone, Putnam, Fayette, and Wayne.

Loan Information

Credit Score: A 620 credit score or an establishment of three alternative credit trade lines is required. 

Term: 30 years

Income Limits: Household 4 or under: up to 90,300; 5+: 119,200

USDA Direct 502 Loans offer mortgages in rural areas to low and very-low income applicants. It includes a 33 or 38 year term, depending on household income, with the ability to receive a government subsidy on the interest rate. Applicants may obtain 100% financing to purchase an existing home, purchase a site and construct a home, or purchase a newly constructed home located in a rural area. Mortgage payments are fixed rate with no mortgage insurance required and based on the household’s adjusted income and is typically within 22 to 26 percent of an applicant’s income.

How to Check for Property Eligibility

To be eligible for a USDA 502 Direct Loan the property must be deemed rural by the USDA. To see if a prospective property is rural visit the USDA Income and Property Eligibility Site. Once there select “Single Family Housing Direct” then “Property Eligibility” and it will take you to a map where you can enter the address of the property.

RCCR offers housing services for the West Virginian Counties of Cabell, Kanawha, Boone, Putnam, Fayette, and Wayne.

Loan Information

Credit Score: A 640 credit score or an establishment of three alternative credit trade lines is required. 

Term: 33 or 38 years terms available based on income

Other Information: Other Information: 100% financed fixed rate mortgage, payments based on income

HOME BLEND Program

The Home Blend loan is a 10-year loan that is forgiven monthly at a 0% interest rate. Clients must occupy the property during the term of this loan. If the property is sold or the occupant moves prior to the 10-year expiration the remaining loan balance will become due and payable to the City of Charleston. The HOME BLEND program can be paired with a home built and/or rennovated by RCCR.

 

Eligibility

  • Applicant must be able to qualify for a mortgage based on individual family income/debt ratio and credit.

  • The applicant must obtain a bank loan from a participating lender. 

  • HOME Program will loan the remaining project cost plus assist with closing costs based on individual qualification.

  • Purchaser must invest a minimum of $500, however closing cost can exceed this amount.

  • Applicant must have an acceptable credit report.

  • Applicant must successfully complete a home-buyer education workshop.

The maximum loan amount a client can qualify for is $140,000.00. Each client will borrow 80% of their funds from a participating lender and the additional 20% is provided as a forgivable loan over a 10-year period. This loan has a 0% interest rate. 

Income limits are as follows

  • 1-person household must make less than $37,200.00 per year, 

  • 2-person household must make less than $42,500.00 per year, 

  • 3-person household must make less than $47,800.00 per year, 

  • 4-person household must make less than $53,100.00 per year

  • Families over 4 people can contact the Mayor's Office of Economic and Community Development at 304-348-8035 for more information.

*Income guidelines are subject to change without notice*

Annual income includes all income received by the household including overtime or irregular earnings. This includes social security, SSI, retirement, pensions, interest from savings accounts or stocks, part-time/occasional employment, child support. 

 

The Home Blend program is designed to assist with the purchase of single-family existing houses only (townhouses are acceptable).


Single-family homes must meet the following criteria: 

•    The selling price is equal to or less than the appraisal value. 
•    The home must pass a housing inspection and environmental review. 
•    Must be existing home that meets Charleston City Code.

 

New construction, mobile homes, or condominium cannot be funded with HOME funds. 

Contact our Housing Counselor

If you are interested in one of these loan programs, contact our Housing Counselor (304) 346-6398 x 3

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