Direct Loan Program

Program Objective:
To provice affordable loans to eligible persons to build adequate housing.

Eligibility Requirments for Applicants:
1 Must be without adequate housing in the local commuting area.
2. Must be unable to obtain home financing through commercial sources.
3. Must be a U.S. citizen or permanent legal resident alien.
4. Have legal capacity to incure the loan and not be a minor.
5. Will personally occupy the dwelling to be purchased.
6. Acceptable credit history.
7. Have dependable income to repay the loan.
8. Adjusted annual income within RD limits.
9. Repayment ratios may not exceed 29%-33% PITI (Monthly payment plus taxes and insurance/Income & 41% for Total Debt/Income)

Loan Purposes:
Loans may be made up to 100% or appraised value and may include closing costs provided the appraisal is higher than the sales price.

Loan Amount, Rates & Terms:
The interest rate will depend upon the applicants income and if they qualify for the payment assistance program. Applicants will usually pay between 22% & 2.6% of their income for their monthly payment. Loans are a 33-year term at a fixed interest rate.

Each Family:
Must pay $ 1,000 earnest money at time of contract signing. The earnest money is non-refundable.