BISMARCK, ND, Nov 04, 2010 -- The U.S. Department of Agriculture Rural Development is lowering the Section 502 Direct Home Loan interest rate for a second time in two months. Effective immediately, the home loan interest rate has been lowered to 4.00 percent.
“By lowering the interest rate, Rural Development aims to help families and individuals purchase affordable homes,” said Jasper Schneider, USDA Rural Development State Director. “Homeownership helps build the foundation for stronger, more prosperous rural communities.”
Under the home loan program, families and individuals may receive a loan directly from USDA Rural Development to buy, build or improve homes in rural areas. The loans require no down payment and the standard term is 33 years. Payment assistance, which can reduce monthly mortgage payments, is also available for those who qualify.
The Section 502 Direct Loan Program is available to low-income households to purchase an existing home, build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Eligibility is based on household size and income. Depending on household incomes, mortgage payments may be subsidized to as low as one percent interest. To view rural eligibility requirements and an area's income limits, you may visit http://eligibility.sc.egov.usda.gov.