Topeka, KS – Darla Buckman, Acting State Director for USDA Rural Development, announced that the Guaranteed Rural Housing (GRH) Loan Program fund usage has already reached an all-time high in Kansas for this Fiscal Year (FY09). This record funding surpasses previous annual records occurring in 2006, 2007, and 2008. So far during FY09, the Agency has funded 1,358 GRH loans for $125,775,739. Applicants for this residential housing program are low to moderate income persons or families who work with a loan broker or mortgage lender approved by USDA Rural Development. The Agency guarantees the loan made by the Approved Lender.
Acting State Director Buckman commented, “The Agency and our Approved Lenders are firmly committed to helping families become homeowners of safe and economical housing. This amount speaks well of the dedication that our Agency staff and Approved Lenders have for making this program successful in Kansas. Fund usage also shows how popular the GRH program has become. The three year total to date in Kansas alone, 329,505,343 has been approved to help 3,904 families buy their own homes.”
Available in towns of less than 20,000 in population and in rural areas, the GRH loan is fairly unique in being a home purchase mortgage that can finance up to 102% of appraised value without the costs or requirements of mortgage insurance. No down payment is required, and the loan is a 30-year, fixed rate mortgage based on current Fannie Mae or VA rates. Although many applicants are first time homebuyers, it is not a requirement.
Tim Rogers, Housing Programs Director said, “The Agency is pleased to provide this record level of housing assistance for Kansas. Whether it’s guaranteeing a homeownership loan in Hiawatha, helping with needed home repairs in Cowley County or providing rental housing assistance in Atchison, USDA helps thousands of Kansans each year improve their quality of life along with helping communities expand their local economic development opportunities.”
USDA Rural Development’s mission is to increase economic opportunity and improve the
quality of life for rural residents. Rural Development fosters growth in homeownership,
finances business development and supports the creation of critical community and technology infrastructure.

Ron Yarbrough
Certified Mortgage Planning Specialist