Effective Feb 1, the interest rate on USDA Rural Development home loans has been reduced to 4.375 percent.
Home prices are at the lowest level in years. Low prices and the rate decrease make this an excellent time for eligible families to purchase a home in rural areas through the USDA Rural Development program according to Don Harris, Housing Programs Director for USDA Rural Development in Tennessee.
USDA Rural Development staff helped more than 300 homebuyers secure financing in rural Tennessee last year. By working with applicants up front to ensure they are financially ready for the responsibilities of homeownership, Rural Development also kept the delinquency rate on its home loans to less than four percent in Tennessee.
Rural Development housing programs help families and individuals in rural areas improve their economic security through affordable home loans and homebuyer education opportunities. In most cases, Rural Development home loans may be made without a down payment.
Depending on an applicant's income, monthly payments may be based on an interest rate as low as one percent. Loans are typically made for 33 years at a fixed interest rate. Monthly payment assistance may also be available for those who qualify.
Eligibility for assistance is based on family income and varies by county. Rural Development staff will help applicants calculate their adjusted family income and complete the application process.
Rural Development also has very low-interest loans for home repairs related to health, safety and accessibility. Applicants must own their home. Those over 62 may qualify for a home repair grant in some cases.
USDA Rural Development invests financial and technical resources in rural communities through housing, community and business development programs. In fiscal year 2008, Rural Development assisted more than 678,000 Tennessee families and businesses with more than $435 million in financial assistance through loans, loan guarantees and grants.
To schedule an appointment to discuss homeownership, or for more information on the guaranteed home-loan program or business development programs available in Tennessee contact the Rural Development Area Office at 423 756-2239, ext. 2, or 800 342-3149, ext. 1492.