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News Release
Release No. STELPRD4011222
ContactJoan Messina217-403-6248
Printable Version  Printable Version
BUYING A HOME THE AFFORDABLE WAY
Home purchase assistance

Champaign, IL, Jul 05, 2011 -- Contact: Joan Messina (217) 403-6248

Buying a Home the Affordable Way

Champaign, Ill., July 5, 2011—Summer is prime time for purchasing homes. For potential buyers with moderate to low income, it can be a frustrating time if they have not saved enough for a down payment or can’t qualify for a conventional home loan. USDA Rural Development offers two affordable home loan programs that can help these homebuyers. Both programs feature no down payment, no monthly mortgage insurance payments, and fixed interest rates.

“USDA Rural Development provides affordable home loans because homeownership can play an important role in the quality of life in rural communities,” said Colleen Callahan, the agency’s state director. “Not only is homeownership the key to the American Dream, it is often the key factor in creating jobs, maintaining viable rural communities and improving the local economy.”

Homebuyers with moderate incomes are eligible for the agency’s Guaranteed Rural Housing loan program. Borrowers using the guaranteed program work with local community lenders, using conventional lender's forms and experience no delays in closing the sale. Rural Development guarantees the lender’s loan with 100 percent financing to borrowers purchasing homes in communities with up to 20,000 residents. Besides requiring no down payment and no monthly mortgage insurance premiums, the agency does not limit the maximum purchase price of the home.

Rural Development also offers affordable direct home loans for homebuyers with low income. These loans offer subsidized interest rates and up to a 38 year term. Maximum loan and income limits apply for direct loans and vary by county.

Home repair loans may be available to very low income homeowners at one percent interest for up to 20 years. These funds may be used to make home repairs, install essential features or remove health and safety hazards.

More information on Rural Development housing programs is available online at www.rurdev.usda.gov/IL_HousingPrograms.html or by calling Rural Development Specialist Nicki Morgan at 217-403-352-4781 ext 4.

-more-

Rural Development has more than 40 programs that foster growth and economic stability in rural areas by providing affordable financing and technical assistance. Support is available for regional food systems, broadband and biofuel infrastructure, homeownership, business development and community needs. More information on USDA Rural Development programs is available on the web at www.rurdev.usda.gov/il. USDA is an equal opportunity provider, employer and lender.

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Caption: Jerry Krebs, Jr. (left) accepts a plant as a housewarming gift form Coldwell Banker Realtor Mike Staton and Prairie State Bank & Trust Lender Kathi Bottorff. Krebs worked with Staton and Bottorff to purchase his home in Mattoon using an affordable USDA Rural Development loan guarantee.

Last Modified:05/11/2012 
 
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