Lincoln, Nebraska, Nov 01, 2010 -- The U.S. Department of Agriculture Rural Development has announced a decrease in the home mortgage interest rate for its Section 502 Homeownership Direct Loan program. Effective November 1, 2010, the interest rate was reduced to 4.0 percent. This reduction in interest rate is a 20 month low and makes it a good time for eligible families to purchase a home through the USDA Rural Development direct loan program. Depending on household incomes, mortgage payments may be further subsidized to as low as one percent interest rate.
USDA Rural Development offers home loans with no down payment and low interest rates for qualifying applicants in rural communities. Maximum mortgage limits range from $145,000 – $170,000 for home purchases in Nebraska, depending on the county.
Individuals or families must be within income guidelines that are established by county. For example, a four person household in many counties in Nebraska cannot exceed $42,950; however, some counties may have higher income limits. Applicants must have acceptable credit history and repayment ability. Properties eligible for Rural Development financing must be located in rural communities, which are those communities with a population of 20,000 or less; but include Columbus and Norfolk. You can visit the agency eligibility web site at http://eligibility.sc.egov.usda.gov to determine if you are within the established income limit based on the size of household and county and if the property is located within an eligible area.
For further information, contact the USDA Rural Development State Office in
Lincoln, Neb. at (402) 437-5518 or your local office which can be found by visiting http://www.rurdev.usda.gov/ne/Contact_Us.htm.