Loan limits increase for homes in rural areas

 

April 3, 2007 - COOKEVILLE, Tenn.—Rural Development Area Director Joe Woody announced today the maximum loan limits for the agency’s Home-Ownership Loan Program has increased to $134,300 for new home loans in rural areas of Middle Tennessee.

 

“Average home prices have increased by 20 percent or more in many parts of the state over the last five years making it harder for many families to buy or build a home,” said Woody. “This increase will help more people in the mid-state take advantage of the low interest loans and other assistance Rural Development has available to help them achieve the dream of homeownership.”

 

Eligibility for Rural Development housing programs is based on family income and varies by county.  For example, depending on where they live a two person household with an adjusted household income up to $31,550 may qualify for a low-interest loan.

 

The 14 counties with rural areas affected by this increase in the maximum loan limit include Cannon, Clay, Cumberland, Dekalb, Fentress, Jackson, Macon, Overton, Pickett, Putnam, Smith, VanBuren, Warren and White.

 

Rural Development’s housing programs are designed to increase homeownership by assisting eligible families and individuals in purchasing or building a home in rural areas of Tennessee. Loans may be made without a down payment, and eligible applicants may qualify for loan financing up to 100 percent of the appraised value.  Depending on an applicant’s income, monthly payments may be based on an interest rate as low as 1 percent.  Loans are typically made for 33 years at a fixed interest rate, with a maximum loan amount of $134,300 in these 14 counties.  Monthly payment assistance is also available for those who qualify.

 

Rural Development also offers a Guaranteed Home Loan program to assist private lenders increase the number of affordable home loans they make in rural areas.

 

USDA Rural Development is committed to the future of rural communities in Tennessee by providing financial and technical assistance through housing, community and business development programs.  In Fiscal Year 2006 Rural Development assisted more than 467,575 Tennessee families and businesses with more than $288 million in financial assistance through loans and grants.

 

For more information on homeownership, guaranteed loan programs or business development programs available in your area, contact the Rural Development Cookeville Area Office at (931) 528-6539 or call toll free at (800) 342-3149 ext. 1493.  Information is also available online at http://www.rurdev.usda.gov/tn.