Home loan limits increased for USDA rural development

Home loan limits increased for USDA rural development

Greg Branum, Missouri State Director for USDA Rural Development, announced increased limits on the maximum home mortgage available through the agency's direct loan program.

“Owning your own home is part of the American Dream,” said Branum. “The new increased loan limits may allow more individuals and families to reach the joy of owning their dream home.”

The new limit is $140,600.00 for residents living in Macon, Monroe, Randolph and Shelby Counties.

USDA Rural Development's direct and guaranteed loan programs provide low-interest, no-down-payment loans to help eligible families living in rural communities and rural areas to purchase existing or new homes. The new lending limits affect only direct home loans from Rural Development. There are no lending limits for guaranteed home loans.

The direct loan program is geared toward low-income individuals. No down payment is required and closing costs may be included in the loan. Eligible applicants are qualified for a loan amount up to this new loan limit based upon their debt-to-income ratios. In addition, the applicant must have an acceptable credit history and adequate and dependable income sufficient to meet all obligations.

Loans may be made up to 100 percent of the appraised value for the purchase of a home, and, in some cases, the loan may include closing costs. The result is borrowers may need less up-front cash for loans made under this program.

Buyers (or borrowers) must personally occupy the dwelling following the purchase. Dwellings must be structurally sound, functionally adequate and in good condition.

The standard term for a loan is 33 years. Depending on an applicant's income, loans may be subsidized and interest rates may be reduced to as low as 1 percent.

Anyone seeking more information about homeownership financing or any other USDA Rural Development program may visit the homepage at http://www.rurdev.usda.gov/mo/ or by contacting Steven E. Gerrish, Rural Development Manager, at steve.gerrish@mo.usda.gov by e-mail, or visiting the office at 2995 County Road, 1325, Moberly, Missouri 65270 or calling (660) 263-7400 extension 4 .