GRH- Another Niche Opportunity for Processors

Written By: Stacey Sprain,
Certified Ambassador Loan Processor (CALP)

In addition to FHA and VA loan processing, another government lending program making a market comeback is Guaranteed Rural Housing (GRH). For areas and borrowers that meet the program criteria, this is truly one of the last 100% programs left standing.

You’ll find important information regarding area eligibility and income limit restrictions at USDA’s Income and Eligibility Site at: Click Here>> . When at the site, go to Property Eligibility and choose Single Family Housing where you will need to read the licensing agreement disclaimer and click “accept.” Then simply click on the state map where the subject property is located and a list of eligible and ineligible areas will be reflected.

To determine area income limits, simply choose “Income Limits” and then “Guaranteed” which will bring up a list of state links. Click on the state link for the subject property and refer to the chart to determine the area’s income limit restrictions based on family size. Applicants can qualify at 115% of the median income for the area.

GRH loans are fixed for 30 year terms and borrowers can finance 100% of the purchase price of the property plus the 2% required GRH guarantee fee. The total LTV can be approved at 102% of the purchase price. There is no monthly mortgage insurance requirement, sellers can contribute up to 6% toward buyer closing costs and prepaid expenses and gift funds from relatives are also permitted. All loans are manually underwritten to 29/41 ratios and ratios can be approved higher when compensating factors are present.

As far as credit, there are no minimum fico score requirements. Bankruptcies and foreclosures must be discharged for a minimum of three years and overall, underwriting looks for a positive credit history for at least the past 12 months.

If you are interested in learning more about the Guaranteed Rural Housing Program in your area, you will find link information for your state contact at: Click Here>>. I have found the GRH offices very willing to help with questions and most will even happily agree to help with live or web training for those who are interested in learning.

Chase is the biggest GRH source in the country and they offer daily training on the GRH program. I highly recommend spending the hour to listen in. They offer the following training calls:

Monday
Time: 9:00 CDT
Phone: 800-972-9818
Code: 90635974

Tuesday
Time: 10:00 CDT
Phone: 800-972-9818
Code: 71941417

Tuesday
Time: 3:00 CDT
Phone: 800-972-9818
Code: 71941417

Wednesday
Time: 3:00 CDT
Phone: 800-972-9818
Code: 90635974

Thursday
Time: 1:00 CDT
Phone: 800-972-9818
Code: 71941417

Friday
Time: 9:00 CDT
Phone: 800-972-9818
Code: 90635974

You’ll also find Chase’s GRH website helpful at: Click Here>>.

You’ll find Chase GRH Program Guidelines and forms at: Click Here>>.

To locate your area account executive for Chase GRH, go to: Click Here>>, scroll down the page and click on your state.

For processors looking for additional business opportunities, I would suggest learning all you can about GRH because if the program is available in your area, you may be able to promote the GRH program to originators in your area who may be unaware of the opportunities and that can mean more processing and more revenue for you!

About the Writer. As one of NAMP's volunteer writers, Stacey Sprain is currently a NAMP member in good standing and is a NAMP Certified Ambassador Loan Processor (CALP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.