The U.S. Department of Agriculture (USDA) Rural Development has financing available for home loans to eligible Kansans living in small communities.
“For more than 65 years, USDA has provided home loan programs to millions of rural residents. Last year more than 1,300 Kansans received financing through USDA Rural Development’s housing programs,” said USDA Rural Development State Director Patty Clark. “By providing affordable home financing, USDA is helping families and individuals who value the rural way of life an opportunity to purchase a home in Kansas.”
The agency has two loan programs that can assist potential homeowners: Single Family Housing Direct Home-Loan Program and the Guaranteed Rural Housing Program (GRH).
Direct home loans available through USDA Rural Development feature 33-year loan terms and payment assistance is available. The program is available to low and very-low income residents.
With guaranteed lending a loan is made to a borrower by the lender following the same basic steps as a conventional loan. USDA Rural Development provides up to a 90 percent guarantee to the lender on qualifying loans, reducing the lender’s risk in the event of a default by the borrower.
USDA Rural Development’s guaranteed home loan and direct home loan programs offer competitive interest rates, fixed terms and require no down payment to help eligible families living in rural communities and areas purchase new or existing homes. Loans, and some grants, are also available to help families make needed repairs to their homes.
Typical income limits for a household of four are $75,650 for the guaranteed loan program and $44,150 for the direct loan program. Income limits vary by county and household size, so applicants are encouraged to contact USDA Rural Development staff for limits in their specific area.
Eligible homes must be located in a rural area and/or a community of generally less than 20,000 residents.
Contact USDA Rural Development
For more information on USDA Rural Development housing programs, visit www.rd.usda.gov/ks, e-mail KSDirect@ks.usda.gov or Kansas-GRH@ks.usda.gov, or contact the office closest to your area:
Hays Office: (785) 628-3081, Ext. 4
Iola Office: (620) 365-2901, Ext. 4
Newton Office: (316) 283-0370, Ext. 4
Topeka Office: (785) 271-2700, Ext. 1
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure programs through a national network of state and local offices. Rural Development has an active portfolio of more than $213 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.