USDA Loan Program Available in Tuscaloosa
Guaranteed loans offer affordable financing to Tuscaloosa homebuyers
May 31, 2012 – The United States Department of Agriculture (USDA) Rural Development has granted a waiver within the city limits of Tuscaloosa, Alabama to allow a Single Family Housing Guaranteed Home Loan Program. This waiver is effective immediately and will provide an affordable mortgage option to eligible individuals and families affected by the April 2011 tornado, as well as newcomers to the Tuscaloosa area.
The Guaranteed Rural Housing (GRH) program is usually limited to rural areas of less than 20,000 in population. However, Tuscaloosa Mayor Walter Maddox and the Alabama congressional delegation made a concerted effort to waive the population requirement as a result of the number of people without homes since the April 2011 storm.
The low-interest loan can be used to purchase an existing home or for the construction of a new home. All applicants must have an adequate and dependable income, be legally able to incur the debt, have a satisfactory credit history and adequate repayment ability. Single buyers or those with families of up to four people are eligible with an adjusted annual income is $74,450 or less. Larger households with five to eight people are eligible up to $98,650.
Interested homebuyers should work directly with an approved participating lender to determine if they meet program eligibility criteria. For a list of approved participating lenders, please click on the links below:
Applicants do not have to be affected by the tornado in order to qualify, but specific regulations apply. For more information about the loan program, please visit the USDA Rural Development website at http://www.rurdev.usda.gov/HAD-Guaranteed_Housing_Loans.html.
For the official press release, please click here.