Rural Development Accepting Single-Family Housing Apps
South Dakota Ag Connection - 03/15/2019
USDA Rural Development State Director Julie Gross announced this week that the agency has two home loan programs that are available to provide affordable homeownership opportunities to rural Americans. The programs are administered by USDA Rural Development's housing program and are called the Single-Family Housing Guaranteed Loan program and the Single-Family Housing Direct Loan program. Both allow for 100 percent financing at affordable rates and terms. The Guaranteed loan program provides homeownership loans through approved lenders. The interest rate is negotiated between the lender and applicant. The Direct loan program loans are made directly through USDA Rural Development offices and the current interest rate is 3.50% and may be subsidized to 1% for qualifying households.
Funding is available now for Fiscal Year 2019 and applications are currently being accepted. Additional information on both programs is available on Rural Development's website at www.rd.usda.gov. Then click on the Single-Family Housing links for detailed information.
"Affordable housing is essential to the vitality of rural communities," said Gross. "USDA programs are successful in providing homeownership to rural South Dakotans. For example, in Fiscal Year 2018 homeownership was brought to 1,194 rural South Dakota families totaling more than $162.7 million.
Eligibility for both housing programs is based on income, acceptable credit and repayment ability and the property must be located in rural areas with populations not exceeding 20,000. USDA uses sound underwriting criteria to ensure borrowers are able to repay their loans. By doing so, USDA Rural Development is helping to keep people in their homes. You can visit the Agency eligibility website at http://eligibility.sc.egov.usda.gov to determine if you are within the established income limit based on the size of household and county and if the property is located within an eligible area.
For details or questions about Rural Development's housing programs, please send an email to SFHDirectSD@rd.usda.gov or call (605) 330-4515, Ext. 4.