USDA offers loan program for low income families

USDA, acting through Rural Development, is announcing a program in which low income families in rural Bureau County would be able to purchase a home with 100 percent financing.

Rural Development may make rural housing loans to low income families and individuals to buy, build or rehabilitate modest homes in rural areas.

Rural areas include open country and places with populations of 10,000 or less. This program will allow these families to buy a home with no down payment. The greatest benefit of this program is that loans can be made to borrowers who cannot meet the down payment requirements for a conventional loan. Applicants must have an acceptable credit history.

The interest rate on these loans is currently at 3.25 percent fixed rate of interest for 33 years.

In order to qualify for this program in Bureau County, for example, a household of two persons' adjusted income could not exceed $37,650. The adjusted income limit for a household of four is $47,050.

For more information about the Direct Loan Program, contact Rural Development at 815-875-8732, ext. 4.