Lincoln, Nebraska, Nov 08, 2011 -- 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, 2011, the interest rate was reduced to 3.50 percent for home mortgages. This is the lowest interest rate ever offered by the Agency.
Homeownership opportunities are available under this program with no down payment, and provide for long term, fixed interest rate financing. Applicants must have acceptable credit history and repayment ability. Credit scores of 640 or greater are typically considered as acceptable, however, credit scores below 640 may also be considered if there are mitigating circumstances.
The low interest rate 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. The program is available to households with incomes at 80 percent or less of the county median income, for the purchase of an existing home or for new construction in rural areas. “Rural” are those communities with a population of 20,000 or less, and the communities of Columbus and Norfolk. To view rural eligibility requirements and/or area income limits, visit http://eligibility.sc.egov.usda.gov.
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.