Guaranteed Rural Housing
Reach more borrowers in rural communities
Reach underserved markets more easily with loans guaranteed by USDA’s Rural Housing Service (RHS) under its Section 502 Guaranteed Rural Housing (GRH) Loan Program.
Through the GRH program you can meet the needs of rural borrowers who have the necessary income and credit history, but not the down payment required to qualify for a conventional mortgage.
Freddie Mac purchases assumable and non-assumable GRH loans through our Fixed-rate Cash, Fixed-rate Guarantor and MultiLender Swap executions. Sellers must obtain Freddie Mac approval to sell Section 502 GRH mortgages to Freddie Mac, and these mortgages must be sold with recourse. The terms under which Freddie Mac purchases GRH loans are included in Chapter 4205 of the Single-Family Seller/Servicer Guide (Guide).
Full and complete information about the GRH loan program is available from RHS offices.
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Download a Section 502 GRH Loan Program fact sheet for more details.
The Section 502 GRH Loan Program allows you to:
- Broaden your market reach with a competitive affordable housing product designed specifically for rural areas
- Expand Community Reinvestment Act (CRA)-eligible origination volume
- Leverage Freddie Mac as your secondary market outlet for GRH loans
Benefits for Your Borrowers
The Section 502 GRH Loan Program helps your borrowers by:
- Providing flexible guidelines on down payment and reserve requirements
- Allowing certain closing costs to be included in the loan amount under certain circumstances, subject to GRH Section 502 program restrictions
- Allowing additional flexibility with no cash-out refinancing as permitted under the GRH Section 502 program
Get More Information
- Contact RHS to learn more about the Section 502 GRH Loan Program
- Call your Freddie Mac representative
- Print a Section 502 GRH Loan Program fact sheet.
The information in this document is not a replacement or substitute for information found in the Single-Family Seller/Servicer Guide and/or the terms of your Master Agreement and/or Master Commitment.