Low-interest loans offered for low-income families


Staff reports

The United States Department of Agriculture Rural Development is currently accepting loan applications from low-income families to purchase or repair homes in rural Indiana communities.

The low interest rate, extended loan term and the possibility of reduced payment allows the applicant to qualify for a higher loan amount needed to purchase decent, safe and sanitary housing for themselves or their family, Indiana’s Acting State Director Alan Krapf said in a news release.

The loans provide 100 percent financing, require no down payment or private mortgage insurance, no points and no origination fees.

They also have a fixed interest rate for a term of 33 or 38 years. Low-income applicants may qualify for subsidized payments and effective interest rate as low as 1.0 percent. Loan funds may also be used to assist current eligible homeowners with repairs at reasonable rates and terms.

Applicants must have an acceptable credit history, meet income guidelines, have repayment ability to service the new loan and any existing obligations, be a United States citizen or legally admitted for permanent residence, and own and personally occupy the home on a permanent basis.

To learn more, contact an Indiana USDA Rural Development Area Office or visit rd.usda.gov/in.

Time is limited to receive these funds. Qualified applicants have until the end of September to apply.

The local area office is at 600 N. State Road 7 in North Vernon.

Information: 812-346-3411, ext. 4.

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