Program available to make homeownership easier in rural Nebraska
March 18, 2016
The USDA is offering homeownership opportunities with no down payment.
Eligibility is based on income, acceptable credit, repayment ability and a property located in a rural area.
Revisions to the USDA Guarantee Rural Housing program guidelines, effective March 9, allow additional families to qualify for home ownership. Now, applicants who have credit scores of 640 or greater, at least two established trade lines on the credit report, and a 12 month payment history will typically have acceptable credit history. Applicants who do not meet this credit threshold may still be eligible via alternative credit history.
Eligibility is subject to income limits not exceeding 115 percent of the median household income of the property's county. The program provides loans through approved lenders. A list is available at http://www.rd.usda.gov/ne. The interest rate, now below 4.5 percent, is negotiated between the lender and applicant.
A direct loan program is available to households below 80 percent of the median household income for the county. Loans are made directly through USDA Rural Development offices. Current interest rate is 3.25 percent and may be reduced to 1 percent for qualifying households.
All communities in Nebraska are eligible for housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha and South Sioux City/Dakota City. More information is available on these programs at the Agency website at http://www.rd.usda.gov/ne.
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— Staff reports