The U.S. Department of Agriculture's rural development division announced it is accepting applications for fiscal year 2011 funding. The 502 Direct Housing loan program is available to eligible very low- and low-income households to purchase an existing home or build a new home in rural areas or small towns.
Financing under this program is available for up to 100 percent loan-to-value. No down payment is required, closing costs are around $2,500 and, if possible, may be included in the loan. Rural Development does not charge any points or application fees and does not require mortgage insurance.
Eligibility is based on household size, income, acceptable credit and debt-to-income ratios. Depending on household income, mortgage payment may be subsidized to as low as a 1-percent interest rate. However, part of this assistance may be recouped if there is equity in the home when it is sold or refinanced.
The house payment does include an escrow for real estate taxes and homeowner's insurance. The home to be purchased must be modest in size and in good repair and in an eligible area. Applicants cannot own a home.
For more information on either program or an application, contact the Findlay Area Office at (419) 422-0242. USDA Rural Development website is eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do more information and complete descriptions of programs available.