12/19/06 Rural Development`s GUS

USDA Rural Development has a new method of underwriting home loans in rural Idaho. GUS or Guaranteed Underwriting System will replace the current manual system. Idaho state director Mike Field says their partners, the banks and mortgage companies, urged Rural Development to become more efficient. FIELD "It's going to provide the same kind of convenience to the banking and mortgage community that they are used to and so it will allow for an electronic application process so that we can speed up this time line that it takes to make a mortgage loan." Those loans may be for 100 percent of the appraised value, no money down, fixed interest rates, and no mortgage insurance. There is a two percent guarantee fee charged by Rural Development for each loan but that fee may be rolled into the loan thereby reducing cash needed to close. Eligibility requirements include size of the community and more generous household income limits. To apply borrowers can choose their own participating local lender which includes banks, credit unions, mortgage companies and Idaho Housing and Finance Association. Loans can be used to finance new construction or to purchase an existing home. Voice of Idaho Agriculture Bill Scott