USDA Rural Development provided nearly $104 million in Fiscal Year 2009 to assist more than 1,200 rural Nebraska households to achieve homeownership under the Direct and Guaranteed homeownership loan programs. 

USDA Rural Development Guaranteed and Direct homeownership loans assist low and moderate income households to purchase or construct a home in a rural community. 

Properties eligible for Rural Development financing are those located in communities with a population of 20,000 or less but including Columbus and Norfolk. Individuals or families must meet established income guidelines, have an acceptable credit history, and show ability to repay the proposed loan. 

The USDA Guaranteed loan term is 30 years at an affordable fixed rate. This fixed rate provides for stable principal and interest payments over the life of the loan. No private mortgage insurance is required. Households applying for a guaranteed housing loan must have an income below the established moderate income guideline. 

For example, in most counties in Nebraska, a one to four person household could have income up to $73,600. In some counties, the amount is greater. Parties interested in the guaranteed loan program should make application through one of USDA Rural Development’s approved lenders. A list of approved lenders is available at www.rurdev.usda.gov/ne on the Guaranteed Homeownership Loan page.

The USDA Direct loan program offers a 33 year term at an interest rate, which is currently 5.0 percent. This rate may be reduced through interest rate subsidy available to qualified applicants. Households applying for a direct housing loan must have an income within the very low and low income established guidelines. 

For example, the low income limit for a four person household in most counties in Nebraska is $42,950. It can be greater in some counties. Through the Direct loan program, a loan is made directly through the USDA Rural Development office and is limited to applicants who cannot obtain other conventional financing, including the USDA Guaranteed program. Households interested in the Direct loan program should contact their local USDA Rural Development office. 

Contact Beth Fries or David Willis at 308-534-2360 ext. 4, or visit http://www.rurdev.usda.gov/ne to locate the office nearest you. 

For income limit guidelines and to determine if a property is located in an eligible area visit http://eligibility.sc.egov.usda.gov