Thursday, October 6, 2016

USDA Rural Development announces record-low interest rates

USDA Rural Development announces record-low interest rates:



The U.S. Department of Agriculture Rural Development has announced a decrease in the home mortgage interest rate for its 502 Direct Homeowners…



The U.S. Department of Agriculture Rural Development has announced a decrease in the home mortgage interest rate for its 502 Direct Homeownership Loan program. The interest rate is reduced to 2.875% percent for home mortgages.
This is the lowest interest rate ever offered by the Agency. Homeownership opportunities are available under this program with no down payment, and provide for long term, fixed interest rate financing.
The low interest rate makes it a good time for eligible families to purchase a home through the USDA Rural Development 502 direct loan program. Depending on household income, mortgage payments may be further subsidized to as low as one percent interest. The lower rates make the monthly payments affordable, and often may be less than rent. For example, a $100,000 loan at 2.875% would have a monthly principal and interest payment of $392.


If applicants qualify for full subsidy at one percent interest, the monthly payments would be further reduced down to $297. The cost of taxes and insurance would need to be added to the monthly payment.