PROGRAM OBJECTIVES:
Rural Development is a rural credit Agency of the U.S. Government serving the needs of borrowers unable to secure acceptable credit elsewhere.
Our current interest rate (fixed) is 4.875% and through a subsidy it may be adjusted down to as low as 1%. This means that on a $100,000 loan, your mortgage payments could be anywhere from $297 to $540 per month excluding taxes and insurance. No down payment 100% Financing.
QUALIFICATIONS TO APPLY FOR A 502 LOAN:
- Must be a resident who resides as a U.S. Citizen or a non-citizen who has been legally admitted for permanent residency.
- Must have stable and dependable income that is adequate with repayment ability to service the applicant’s monthly debt. The housing costs cannot exceed PITI of 29% of the household GROSS income and a debt ratio that does not exceed 41% for GROSS income in order to meet the qualifying ratios for eligibility.
- Must have a credit history which indicates a reasonable ability and willingness to meet obligations as they become due.
- Be without adequate housing. Loans are made to individuals and families that intend to occupy the dwelling on a permanent basis.
- Unable to obtain a loan form other commercial resources at reasonable rates and terms.
- Must have an adjusted annual income which does not exceed the applicable low income limits. See chart below.
LOAN PURPOSES:
Loans may be made up to 100% of the appraised value and may include some closing costs. Loan funds are used to buy existing homes (and/or make repairs if needed) or new construction. Existing homes must be modest, structurally sound; functionally adequate; in good repair or will be placed in good repair with USDA Rural Development funds.Loan amounts, rates and terms depend on the county the house is in. Properties can be existing or new construction.
CONTACT:
For more information regarding the 502 Loan Program or assistance completing a pre-qualification application contact the Dodge City/Ford County Development Corporation at (620) 227-9501