When people hear of USDA, they naturally think of meat inspection and agriculture. However, did you know that the USDA Rural Development offers programs with 100 percent financing for home ownership in rural communities? USDA Rural Development received an allocation of more than $8 million for Nebraska in Fiscal Year (FY) 2015 to assist low and very low income households in rural communities to become homeowners. Adequate funds remain available through the Direct Housing program for FY 15, which ends September 30, 2015.
Nebraska has a population of 1.8 million, and nearly 897,000 residents live in rural Nebraska. Nebraska State Director Maxine Moul, USDA Rural Development said, “USDA Rural Development’s mission is to increase economic opportunity, create and maintain jobs and enhance the quality of life in our rural communities. Home ownership should be an achievable dream and in many cases, USDA housing programs provide the only way for rural residents to buy a home.”
All communities in Nebraska are eligible for USDA Rural Development housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha and South Sioux City/Dakota City.
If rural families are interested in purchasing a home, but have been putting off home ownership because they don’t have a down payment or don’t think they can afford a house payment, they are encouraged to complete a pre-qualification for eligibility. The Rural Development Direct program does not require any down payment and interest rates are currently 3.25 percent but may be subsidized as low as 1 percent for eligible households, which may actually make a mortgage payment less than rent.
Applicants interested in obtaining a direct home loan must have an adjusted income that is at or below the applicable low-income limit based on their size of household and the county where they wish to buy a house.
For example, the income limit for most counties in Nebraska for a one person household is $34,150, two person; $39,050, three person; $43,900, four person $48,800; five person, $52,700; and six person, $56,600. However, higher income limits may be applicable in some counties. A full list of income limits by county and household size are available on the Rural Development website at www.rd.usda.gov/ne .
Applicants must have acceptable credit history and repayment ability. Credit scores of 640 or greater are typically considered as acceptable, however, credit scores below 640 may also be considered with additional credit analysis.
Visit http://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/ne for more information and a list of contact information. You may also contact Single Family Housing Specialist Krista Mettscher at 402-437-5518, krista.mettscher@ne.usda.gov.
President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.