Housing loan applications are accepted by USDA Rural Development
USDA Rural Development state director Chuck Banks announced the agency is accepting applications for USDA Rural Development's Single Family Housing Direct Loan Program and Single Family Housing Direct Repair Loan Program for the balance of fiscal year 2004 funding.
"USDA Rural Development in Kansas still has funding available for direct lending to eligible borrowers interested in purchasing their own home or repairing their existing residence. The Agency is strongly committed to improving homeownership opportunities across rural Kansas," said state director Banks.
USDA Rural Development's Single Family Housing Direct Loan Program is or qualified applicants to purchase new or existing housing in rural areas. No down payment is required and closing costs are about $2,500. The agency does not charge any points or application fees and does not require mortgage insurance. Most loans qualify for payment assistance on the monthly house payment, making the mortgage payment affordable for the family. A portion of this assistance may be recouped if the house has increased in value at time of sale or refinancing.
To qualify USDA Rural Development's Single Family Housing Direct Loan Program, applicants must have a household income less than 80 percent of the county median income, have acceptable credit history and have sufficient income available to make the mortgage payment including real estate taxes and hazard insurance escrow. Applicants cannot have liquid assets in excess of $7,500 or the ability to obtain the loan from a conventional bank. The purchased home must be modest, in good repair, and located in an eligible rural area, which includes most towns of population up to 20,000. The average loan limit for counties in Kansas is $111,584, with a range from $102,900 to $152,300.
USDA Rural Development's Single Family Housing Direct Repair Loan Program is to help very-low income applicants remove health and safety hazards or repair their homes. To qualify, applicants must have a household income less than 50 percent of the county median income and own and occupy the property they want to repair. Applicants must have acceptable credit history and have sufficient income to pay back the loan.
For more information on either program, as well as the availability of other Agency programs, contact USDA Rural Development at (316) 283-0370, ext. 4, 1405 South Spencer Road, Newton, KS 67114, or log onto the state's Rural Development website at: www.rurdev.usda.gov/ks.
