With homes for sale across the country, buyers continue to have plenty of choices and lots of bargaining power. With the help of U.S. Department of Agriculture (USDA) Rural Development’s No Down Payment home loan programs, those dreams of homeownership may still come true.
“USDA Rural Development offers homeownership opportunities to South Dakotans and we are helping to improve the quality of life for South Dakota residents while assisting with the growth of rural communities,” said U.S. Department of Agriculture (USDA) Rural Development Acting State Director Bruce Jones.
USDA Rural Development’s Rural Housing Direct Home Loan Program offers 100 percent financing with no down payment required for low and lower income individuals or families at a 3.75 percent interest rate. These loans are made directly through USDA Rural Development and are offered for a period of 30-38 years. The repayment on the loan may be subsidized by the Federal Government, based on the household income. Direct loans may be made for the purchase of an existing home or new home construction.
The loan amount is determined by repayment ability of the borrower. Loans made under this program are to individuals and families with income that does not exceed 80 percent of the median income level of the county where they live and who would not otherwise qualify for a conventional loan. County Income limits for the programs are posted on the USDA Rural Development website at www.rurdev.usda.gov and clicking on “Income and Housing Eligibility” on the right hand side of the screen.
Redfield resident Teresa Browne worked closely with USDA Rural Development to make sure she met all the qualifications for the housing program. The first property she found turned out to be a buyer’s nightmare as the property repairs far exceeded her line of credit. Browne shared that she went through a period of feeling devastated and depressed. Then one day, her supervisor at work told her about a friend she knew that had a house for sale. Reluctant and hesitant at first, she overcame despair and forced herself to give homeownership a second chance and went to look at the home. She fell in love with it instantly. This time around the deck was stacked in her favor and things moved forward smoothly. Browne and her daughter and children are on cloud nine and excited to call this house their home.
USDA Rural Development’s Rural Housing Programs offer a broad range of homeownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The Rural Housing Program area of USDA Rural Development has the ultimate goal of providing affordable homeownership opportunities to South Dakota residents. For additional information on USDA Rural Development programs visit www.rd.usda.gov/sd.
For further information on this program, please contact Housing Specialist: Aberdeen Area Office - Roxanne Woodring, roxanne.woodring@sd.usda.gov, or 605-824-3623, servicing Beadle, Brown, Campbell, Day, Edmunds, Faulk, Marshall, McPherson, Roberts, Spink, and Walworth.