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USDA Rural Development Administrator, Tammye Trevino, has announced the “All the Way to 20 K” campaign for the Single Family Housing Section 502 Direct Loan Program. The campaign goal is to obligate 100% of this fiscal year’s funding which will assist nearly 20,000 families to become successful homeowners.
The Agency has received American Recovery and Reinvestment Act appropriations, which when added to the Agency’s regular annual allocation, has increased Agency funding to the highest level in 15 years. Funds must be obligated by September 30, 2010.
Program funds are for lower income families for home purchase, repair, and in certain situations re-finance. The program offers 100% financing; fixed interest rate (currently 4.875%); 33 year term; no origination fee; no points; and no mortgage insurance.
A subsidy called payment assistance is available for borrowers that qualify. Payment assistance can reduce the interest on loan down to as low as 1%, which lowers the family’s monthly mortgage payment. Homes purchased must be in good repair and be located in an eligible rural area (which includes most towns of population up to 20,000). The direct program can be an important component for building strong rural communities.
USDA Rural Development has reorganized staff to deliver this unprecedented amount of funding. Contact your closest USDA Rural Development Area Office for more information, or visit our web site at www.rurdev.usda.gov/ks (information may also be found by using a search engine and searching for USDA Rural Development Kansas).
Garden City Area Office – 620-275-0211
Hays Area Office – 785-628-3081
Iola Area Office – 620-365-2901
Manhattan Area Office – 785-776-7582
Newton Area Office – 316-283-0370
