USDA Rural Development / Low-Income HomeOwner Loans for "Credit Qualified" Only

No help from Uncle Sam for the poor with bad or no credit history.

FOR IMMEDIATE RELEASE Media Contact: Tim Jones (315) 477-6436

timothy.jones@ny.usda.gov

USDA RURAL DEVELOPMENT’S INNOVATIVE HOME LOAN PROGRAMS

CAN HELP LENDERS AND HOME BUYERS


SYRACUSE, N.Y., Feb. 11, 2009 - Interested in a home loan that requires no down payment, no private mortgage insurance and offers low, fixed interest rates?

If so, the U.S. Department of Agriculture Rural Development agency’s home loan program might be right for you.

Rural Development’s Single Family Housing Program

Rural Development serves as the USDA’s economic and community development arm and has the mission of improving economic conditions and the quality of life in rural America.

The agency’s Single Family Housing (SFH) Program supports this mission by offering direct and guaranteed home loans to help rural New Yorkers buy or build safe, decent and affordable homes. Home ownership is an economic cornerstone for individuals and communities and owning a home is an integral part of the American dream. The direct and indirect impacts of housing development also provides a stimulus for manufacturing, trade industries and related professional services, benefitting the larger economy.

Last year, Rural Development’s SFH program invested more than $97 million in New York, helping more 1,000 families and individuals buy, build or repair homes.

Direct Loan Program

The direct loan program provides government loans to low-income families or individuals. Borrowers must be able to afford mortgage payments, including taxes and homeowners insurance, and have a reasonable credit history. Direct loans are for 33 years, although 38-year terms are available in some cases. Payment assistance also is available for many qualifying borrowers.

Guaranteed Loan Program

The guaranteed loan program is administered in partnership with private lenders and is designed to assist low- and moderate-income borrowers. In the program, the loan is made by a bank, credit union or other financial institution, and Rural Development guarantees a large percentage of the loan on the borrower’s behalf. The guarantee enables lenders to offer more affordable mortgage terms. The loans have a two percent guarantee fee and this can often be rolled into the mortgage, enabling lenders to finance up to 102 percent of an appraised home’s value.

The First Step

Rural Development operates an extensive income and property eligibility web site at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do. Potential applicants can find out if the home they’re interested in is in an eligible area - the loan programs are restricted to rural areas - and find income limits for their locations.

Prospective homebuyers and lenders interested in enrolling in the guaranteed program can also call the USDA Rural Development Service Center nearest them or call Rural Development’s state office at (315) 477-6416. A list of local offices with phone numbers and counties served is provided on the last page of this press release.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. In fiscal year 2008, the agency invested more than $273 million in rural New York, raising its total investment in the state to more than $1.75 billion since 2001. Additional information on Rural Development programs may also be found at www.rurdev.usda.gov/ny.





#








USDA Rural Development Service Centers in New York

Location
Phone Number
Counties Served

Batavia
(585) 343-9167, ext. 2200
Niagara, Erie, Orleans, Genesee, Wyoming

Bath
(607) 776-7398, ext. 4
Schuyler, Chemung, Steuben, Allegany, Cattaraugus, Chautauqua

Canandaigua
(585) 394-0525, ext. 4
Seneca, Wayne, Ontario, Yates, Monroe, Livingston

Canton
(315) 386-2401, ext. 4
St. Lawrence, Clinton, Franklin

Cortland
(607) 753-0851, ext. 4
Broome, Tioga, Chenango, Tompkins, Cortland, Cayuga, Onondaga

Greenwich
(518) 692-9940, ext. 4
Rensselaer, Washington, Saratoga, Warren, Essex, Hamilton

Johnstown
(518) 762-0077, ext. 4
Fulton, Montgomery, Otsego, Delaware, Schoharie, Schenectady, Albany, Greene

Marcy
(315) 736-3316, ext. 4
Madison, Oneida, Herkimer

Middletown
(845) 343-1872, ext. 4
Columbia, Ulster, Sullivan, Orange, Dutchess, Putnam, Suffolk, Westchester, Rockland

Watertown
(315) 782-7289, ext. 4
Jefferson, Lewis, Oswego



http://www.rurdev.usda.gov/ny/toolbarpages/newsroom_10.04.06.htm