USDA home loan program now has lowest interest rate ever

LINCOLN — Effective July 1, 2020, the interest rate decreased to 2.5 percent for USDA Rural Development’s Direct Homeownership Loan Program. This is the lowest interest rate in the history of the program.

USDA’s Rural Development direct loan program is available to assist low- and moderate-income households to become homeowners when conventional financing is not available. The program offers affordable fixed rates with no down payment. Depending on household incomes, mortgage payments may be further subsidized to as low as an interest rate of one percent.

Properties eligible for Rural Development financing must be in rural communities. All communities in Nebraska are eligible for USDA Rural Development housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha and South Sioux City/Dakota City.” An income eligibility calculator and eligible rural areas are available at: https://go.usa.gov/xfg39

Applicants must have acceptable credit history and repayment ability. Credit scores of 640 or greater are typically considered as acceptable, however, credit scores below 640 may also be considered with additional credit analysis.

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