Greenbriar Sustainable Living Inc V.GRB

USDA 502D - Direct Home Loan Program - Navajojoe

[JefffCEO]

Navajojoe ...

Your are incorrect.

The program for Sage Ranch is the USDA 502D "Direct" loan program where the USDA is the actual lender, not a backstop for a regular lender.

Here are the highlights to the USDA 502D direct loan program:

- USDA is the actual lender

- Purpose is to provide safe, sanitary and decent housing and create prosperity for people in Exurbs or rural areas.

- Maximum home price is $548,000

- Maximum income of $103,500 with 1 to 4 people, up to $136,600 with 5+ people.

- USDA loans with banks have a 640 credit score minimum, HOWEVER the USDA 502D program does not have a minimum credit score

- As of September 30th, 2022, the interest rate is 3.5% HOWEVER the USDA 502D will subsidize you down to 1% annual interest for a 33 to 38 year amortization.

- No down payment

- USDA covers 2 years of auto, mortgage and tax payments if loss of job.

- Owner cannot then rent out his house to another person

- Owner must provide proof of income and citizenship or residency status.


Greenbriar is 1000% recession proof.

[Hubbie87]

Seems like an amazing time to have 1000 homes where housing is scarce to be financed by the USDA and virtually given away with those terms. 

[Paddymelt]

Thanks again Jeff. It is your extensive knowledge of all things GRB that give me confort. Some CEO's of junior companies like to play the part,with little to no skin in the game. The markkets are terrible at the moment but i believe you have positioned GRB for success . Thanks again.

[SvenVandeBroek]

Indeed Paddymelt, Jeff is very knowledgeable on the areas of large infrastucture projects and finance. He and his wife own 15% of the company. The other insiders of GRB account for nearly another 10%. It's currently not known what the interest of Paul Morris is in GRB. Here are the differences between the SFH Housing Guaranteed Loan Program in general and the SFH Direct Home Loan Program

[navajojoe]

This post has been removed in accordance with Community Policy

[navajojoe]

This post has been removed in accordance with Community Policy

[Letsmakemoney9]

In 2022, USDA loan limit in Tehachapi, county of Kern, CA is $291,100 while FHA limit is $356,362 for a single-family home. https://www.lendersa.com/usda-vs-fha/ca/tehachapi

[navajojoe]

This post has been removed in accordance with Community Policy

[Letsmakemoney9]

So instead of get 548,000$ loan , the maximum is only 290,000 $ so this is  almost 50% of the original number .  So the house buyer still need to put a cash down for 150k $ to 250k dollar to buy a house in sage ranch . Whoever has this much cash more likely not qualify for the maximum income requirement in USDA . 

[nbinvestor11]

Jeff: What is the benchmark(might not be correct term) for the USDA rate?  I am sure it moves with prime or something similar. As of September 30th, 2022, the interest rate is 3.5% HOWEVER the USDA 502D will subsidize you down to 1% annual interest for a 33 to 38 year amortization. Per the website - a reduced rate is for low or very low income...Can you expand with what low or

[shneps]

https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-direct-home-loans/ca

[shneps]

Loan limit is $345,000 for a home under 2,000sq. ft. in Kern County. https://www.rd.usda.gov/files/RD-SFHAreaLoanLimitMap.pdf

[shneps]

I did a simple calculation of how units in the Sage Ranch development are actually eligible for the USDA loans based on the $345,100 loan limit for homes under 2,000 sq.ft. Technically the only eligible buildings would be the apartments (204 DU), the one floor Cottage Homes A (44 DU), Cottage Homes B (66 DU) for a total of 314 units or 31% of the overall development. As for the ADU's that

[navajojoe]

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[shneps]

Interesting to see the SEC has had Greenbriar remove the ProForma Altus Report pdf from the corporate presentation site. Reviewing the Altus Report you can see the following -  "Additionally, we are carrying a budget of $17,224,210 for site servicing costs. These costs are based on an engineer’s estimate completed by DeWalt Corporation dated June 4, 2019. We note this estimate also