USDA Rural Development is offering low interest home loans to assist eligible rural Texans; a program that Economic Development Director Rick Langford said would help fill the housing needs of Henrietta.
The Henrietta Growth Corporation has five lots for sale in the Western Estates addition, located north of high school and elementary campuses, listed with local real estate brokers at $8,000 each. Langford is trying to promote Western Estates to homebuilders, but said the USDA loan programs offer low to moderate-income families an opportunity to purchase a lot and build in the addition.
Langford urges anyone interested in purchasing or building a new home, in Western Estates or any other area of Henrietta, to look into the USDA programs, and expects some to be surprised that they qualify.
According to a recent press release from USDA Rural Development, applicants that have an income below 80 percent of the area median family income could qualify for a direct homeownership loan. Applicants below 115 percent of the area median family income could qualify for a guaranteed homeownership loan.
“With mortgage interest rates continuing at low levels, now is the time to stop paying rent and purchase your own home,” said Paco Valentin, USDA Rural Development State Director, in the press release. “We may be able provide eligible applicants the opportunity to move into a home without a down payment.”
The USDA offers two programs for families with low and moderate income. A family of four with an income of $50,150 or less could qualify for the Direct Rural Housing Program. A family of four with an income of $74,050 or less could qualify for the Guaranteed Rural Housing Program. The income limit for a family of 5-8 seeking a Guaranteed Rural Housing Program loan increases to $97,750. Additional adjustments for those who are elderly, or have child care costs or medical expenses are available.
The Direct Rural Housing Program provides low-interest, no-down-payment loans to help eligible families living in rural communities and rural areas to purchase their own homes. Closing costs may be included in the loan and applicants may be eligible for payment assistance, which would subsidize the interest portion of the house payment down to as low as 1 percent, lowering the overall monthly payment amount. In many cases, the total monthly house payment, including taxes and insurance, may actually be less than a family is paying for rent.
The Guaranteed Rural Housing Program can allow the closing costs associated with purchasing a home to be financed into the loan up to a maximum loan to value ratio of 102 percent and the borrower is not required to pay mortgage insurance. A one-time-only two percent guarantee fee is due at closing or may be rolled into the loan. Private lenders, such as mortgage companies and commercial banks, make USDA Rural Development Guaranteed Loans with a 30-year term and a competitive fixed interest rate.
The Guaranteed Rural Housing Program does not have loan limits and the maximum loan is determined by the applicant’s income and repayment ability.
Those interested in building or buying a home and think they may qualify for a loan program should contact the USDA Rural Development Sub-Area Office in Decatur at (940) 627-3531, Extension 4, or visit the Rural Development website at http://www.rurdev.usda.gov/tx/. For more information about lots available at Western Estates, contact Langford at (940) 538-6768, or by e-mail at email@example.com.