USDA Rural Development reduces interest rate on home mortgages

The U.S. Department of Agriculture Rural Development Tuesday announced a decrease in the home mortgage interest rate for its Section 502 Homeownership Direct Loan Program. Effective January 1, 2007, the new interest rate has been reduced to 5.75 percent, down from the 6 percent rate. This rate decrease makes this a good time for low-income families to purchase a home through the USDA Rural Development program.

The Section 502 direct loan program is available to eligible very-low and low income households to purchase an existing home, purchase a site and construct a dwelling, or purchase a newly constructed dwelling in rural areas. Financing under this program is available for

up to 100 percent loan-to-value, and no down payment is required. Eligibility is based on household size and income. Applicants must have acceptable credit histories, and debt-toincome ratios. Depending on household incomes, mortgage payments may be subsidized to as low as 1 percent interest rate. To view rural eligibility requirements and/or the area’s income limits, visit http://eligibility.sc.egov.usda.gov, or contact the Murphy, NC USDA Rural Development office at 837 2721 ext. 4.

The counties of Cherokee, Clay, Graham and Swain are served by the Murphy, NC USDA Rural Development Office