In observance of National Homeownership Month, the staff at USDA Rural Development sponsored a balloon launch at a local daycare.

“One, two, three, let go,” was the command and the balloons flew away in a northwesterly direction. The children stood watching in amazement, each claiming their balloon was the highest in the sky. Finally the balloons disappeared from site.
“Now we are awaiting the result of which balloon flew the farthest. As a direct result of this forthcoming information that child will receive a savings bond from First National Bank, a local lender in Mexico,” said USDA Area Technician Teresa Fulsom.

Rural Development offers very low to low income individuals and families the chance to share in the American Dream of homeownership.  There are programs in place that will assist these individuals and families with the process of purchasing their own home.

Rural Development offers three types of assistance to low and very low income individuals and families.  First there is the 502 Direct loan program where the interest can be subsidized by the federal government, which in turn makes the mortgage payment for the borrower much lower. The current interest rate is 5.375 percent. If a person or family qualifies, that interest rate may be subsidized down to as low as 1 percent. This loan is a 33-year fixed rate loan and for some individuals that qualify, the term may go up to 38 years. 

Secondly, there is the 502 Guarantee loan program. This program is for the moderate income individuals and families. With this program, a conventional lender (bank, saving and loan, mortgage company, etc.) actually makes the loan and Rural Development guarantees 90 percent of the loan. More individuals and families may be eligible to become owners of a new home or an existing home. For households that qualify for financing, no money down is required since 102 percent loans are available under this program. Some or all of the closing costs may also be included in the loan if they are within the appraised value of the home. Loan payments are based on market interest rates with a 30-year fixed term. Both real estate taxes and insurance are typically escrowed and included as part of the monthly payment.

Thirdly, for those individuals and families that already own their homes, RD offers a 504 Loan/Grant program to assist those individuals with the upkeep of their homes. This program is a 1 percent interest loan for the very low income. They may qualify for up to $20,000 at a term of 20 years. The repair program helps with roofs, foundations, heating and cooling, windows and other weatherization issues. This program is also used for handicap accessibility issues such as ramps, widening doors, bathroom fixtures and much more. The grant program is for individuals age 62 or older. This is a $7,500 lifetime grant and is forgivable after 3 years.  The individual must not have the ability to repay a loan at 1 percent in order to qualify for a grant, and must meet the income and age requirements.

The Mexico Sub-area office services Audrain, Boone, Callaway and Howard counties in Missouri. For more information on any program offered through Rural Development call the Mexico office at (573) 581-4177 ext. 4 or email www.rurdev.usda.gov/mo. or visit the office located at 4617 South Clark, Mexico, MO 65265.