Loan Limits Increase In USDA Rural Development Home Loan Program

Loan Limits Increase In USDA Rural Development Home Loan Program (Rockbridge Weekly)

Lexington, VA, March 1, 2007 – USDA Rural Development has published new modest housing loan limits for its Single Family Housing (502) Direct Program for qualified applicants to buy or build homes in rural areas. Qualifying as eligible rural areas are: Alleghany, Bath, Botetourt, and Rockbridge. The new loan limit for the counties of Bath, Botetourt, and Rockbridge are $200,000.00. Alleghany County’s new loan limit is $199,000.00.

Eligible applicants are qualified for a loan amount up to this new loan limit based upon their debt-to-income ratios. These loans may be made to individuals and families within the very low and low income categories. An applicant must have an acceptable credit history and adequate and dependable income sufficient to meet all obligations. The applicant must become the owner occupant of the property.

Loans may be made up to 100 percent of the appraised value for the purchase of a home; and in some cases, this may include closing costs. Borrowers need less up-front cash for loans made under the program. Further, the standard term for a loan is 33 years with a 38-year loan available to those who are eligible. Loans are subsidized, and interest rates may be reduced to as low as 1 percent.

Further information may be obtained by calling the Lexington USDA, Rural Development office at 540-463-7124 Ext. #116.