Tracy L. Jordan, Area Specialist with the USDA Rural Development Charleston Office, announces funding remains for purchasing homes through Rural Development's Section 502 Housing Program. The Charleston office serves Mississippi, New Madrid, Scott, Cape Girardeau and Bollinger Counties.
Many individuals have a dream of someday owning their own home. USDA Rural Development is able to make that iconic American Dream a reality for so many families in rural Missouri. Rural Development offers two single-family home purchase programs; 502 Direct Housing Loan Program and the 502 Guaranteed Housing Loan Program. Both programs provide 100% financing to purchase homes.
Applications for the Direct Loan program can be completed at the Rural Development Office. Presently the interest rate is 3.625% on a fixed 33-year term. Some buyers may also qualify for payment assistance which may reduce the effective interest rate, thus reducing the monthly payment. This payment assistance benefit has the potential of making the monthly payments less than rent payments for some applicants. Real estate taxes and insurance are escrowed as part of the monthly payment and some or all of the closing costs may even be able to be included in the loan.
For those applicants that exceed the income limits of the 502 Direct Loan Program, a Guaranteed Housing Loan may be an option. Applicants may have an income of up to 115% of the median income for the area. These loans are made by approved local lenders and Rural Development guarantees the loan to the lender. Loans have a 30-year term with interest rates determined by the lender. There is no required down payment and some or all of the closing costs may be included in the loan. Applicants must be able to afford mortgage payments, including taxes and insurance, and have reasonable credit histories.
Some of the eligibility criteria for both programs include: be a U.S. citizen or have permanent resident alien status, use the home to be purchased as the primary residence, be of legal age to incur a loan obligation, meet income guidelines for the county that they wish to live in, have good credit history and have repayment ability.
Further information on these housing programs or other Rural Development programs is available by visiting USDA Rural Development's web site at http://www.rurdev.usda.gov/mo. Information on the Section 502 programs can be obtained by contacting Tracy L. Jordan, tracy.jordan@mo.usda.gov, at the Charleston Rural Development office, 831 S Hwy 105, Charleston, MO, 63834. Or by calling (573) 649-9947, Extension 4.