Home loan program sees notably low interest rate

Tuesday, February 10, 2009

USDA Rural Development has lowered its interest rate for its Section 502 direct home loans by 1 percent to one of the lowest rates ever.

Lowered from 5.375 to 4.375 percent, the home loans help eligible applicants purchase an existing home or construct a new residence.

Last year the program loaned about $28.5 million to 326 families in Missouri. One home buyer has been helped this year in Cape Girardeau County.

Eligibility is based on a homeowners' adjusted gross income. For a family of four, the income must not exceed $45,100 and for a family of three income must not surpass $40,600. The maximum loan limit is $130,200 and requires no down payment.

Cape Girardeau is the only city within Cape Girardeau County ineligible for the loans, which are available only to areas with populations of 20,000 or less.

"This has been the lowest since I've been here," said Debra Walker, area technician for the Jackson Rural Development office. "We've been in the 5 percent rate before but this is the lowest in the eight years I've been working in this area."

More information about the loan program is available online at eligibility.sc.egov.usda.gov, in person at 480 W. Jackson Trail in Jackson, by calling 243-3158 or by e-mailing randy.flowers@mo.usda.gov or debra.baker@mo.usda.gov.

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