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Wednesday, May 4, 2016

Home loans available through USDA Rural Development

Thursday, January 25, 2001

If you are interested in purchasing your own home in rural USA, USDA Rural Development could assist you with their loan program.

They offer mortgage loans with interest rates of up to 6.875 percent with no down payment for individuals who are unable to obtain credit through commercial lenders. Families may receive loans through USDA based on their income. For example, a family of four whose income does not exceed $36,250 would be eligible for a direct loan. (You may receive subsidy that will reduce your payments.) The number of persons living in the household determines the income limit.

The period of payment for a loan is 33 years for the majority of the loans. However, for people who are not able to repay within this period, USDA may authorize loans to be paid in 38 years. Loans processed under this program can be made only toward the purchase and repairs of existing homes or the construction of a new one.

To obtain more information about the direct loan program and to see if you qualify to receive assistance, please contact the USDA Rural Development office, located at 1619 North Lake Avenue in Storm Lake or calling them at 732-1851.