USDA Rural Development's new income limits may increase rural home ownership
Increased income limits through U.S. Department of Agriculture Rural Development may increase opportunities for rural families to own their own home.
As the High Plains Journal reports, the USDA announced the new 2017 income limits for its direct and guaranteed home ownership loan programs that may make more households eligible to obtain 100 percent financing.
The income limits are based on the county and the size of household.
USDA Rural Development loan programs are available to assist low and moderate income households obtain home ownership when conventional financing is not available.
USDA Rural Development loan programs offer affordable fixed rates with no down payment. The current interest rate for the direct program is 3.25 percent. The interest rates for the guarantee program are negotiated with the approved lender.
Barriers to obtaining affordable housing may include lack of cash reserves for down payment and the availability of suitable financing.