Rural Development loans help people get into homes (Tulsa, Mutual: low income, mortgage)

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Direct loan program (Section 502)-

• affordable interest rate
• most loans are made at 80% of the median income level in the community where they live.
• can be made to those who will not qualify for a conventional loan, enabling many more people to qualify than might not otherwise.
• loan is guaranteed-individual or family may be able to borrow up to 100% of the appraised value of the home, which eliminates the need of a down payment.

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Mutual Self Help Program (Section 523)

• For very low and low income (must prove) Very low is 50% of the area median income while low is 50-80% of the AMI.
• Must be without adequate housing
• Must be able to afford mortgage (payments are 22-26% of the applicants income)
• Enables future homeowner to work on homes themselves allowing them to pay less for the home. (Homeowner must complete 65% if the work to build his or her own.)
• Loans up to 33 years (or 38 years if income is below 60% of the area median.)
• House must be modest in size, cost and design.

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Home Repair Loan and Grant-

• for very low income families whose homes are in need of repair. Also, provides funds to make home more accessible to someone with disabilities. (Ex: repair a leaky roof, replace a wood stove with central heat, construct a ramp for one with a wheelchair or replace outhouse and pump with running water, a bathroom and a waste disposal system.)
• Homeowners 62 and older are eligible for home improvement grants; other low income families and individuals receive loans at a 1% interest rate directly from HCFP. __________________________________________________ __________________________________________________ __________

Example of income limits (based on 2 people as of 03/18/08) for Tulsa Hud Metro- Very low income $21,900; Low income 35,000. (Payne County- very low income $20,400; Low income $32,650)
http://www.rurdev.usda.gov/rhs/sfh/DSFH_Income_Limits/OK%20Direct.pdf

For more information on the Rural Development program: http://www.rurdev.usda.gov/rhs/sfh/i...ram%20(Section

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I had no idea there was a whole forum on mortgages. I happened to see it when I googled rural development looking for loans.



http://www.city-data.com/forum/searc...archid=7733751