USDA Rural Development cuts low income mortgage interest rates again

Tunkhannock - The USDA Rural Development has announced a decrease in the home mortgage interest rate for some of its loans. The change impacts Section 502 Homeownership Direct Loan program. Effective Nov. 1, the new interest rate has been reduced to 6 percent - down from the 6.25 percent rate that has been in effect. This rate decrease provides an excellent opportunity for eligible low-income families to purchase a home through the program. The Section 502 Direct Loan program is available to eligible, very-low and low-income households to purchase an existing home or build a new home in rural areas. Financing, under this program, is available for up to 100 percent loan-to-value, and no down payment is required. Eligibility is based on household size, income, acceptable credit histories and debt-to-income ratios. Depending on household incomes, mortgage payments may be subsidized to as low as one percent interest rate. Eligibility requirements and the area’s income limits may be seen by visiting the http://eligibility.sc.egov.usda.gov site. Pike and Wayne counties are served by the Wyoming Local USDA Rural Development office. For information on applying for assistance under the USDA Rural Development Section 502 Homeownership Direct Loan program, please visit or contact the office at 1 Hollowcrest Complex, Tunkhannock, PA 18657, or phone 570 - 836-4157, ext. 4.