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file:///C:/Documents%20and%20Settings/jennifer.jackson/Local%20Settings/Temporary%20Internet%20Files/OLK90/www.rurdev.usda.gov/nySINGLE FAMILY HOMEOWNERSHIP LOANSARE YOU TIRED OF RENTING?ARE YOU READY TO OWN YOUR OWN HOME?
LOANS ARE AVAILABLE TO PURCHASE OR BUILD MODEST HOMES IN HERKIMER, MADISON and ONEIDA COUNTIES
GENERAL REQUIREMENTS: · Steady Dependable Income · Good Credit History· Low Debt· Must be below the following Income Guidelines
No Money Down Subsidized Payments Possible Financed Closing Costs No PMI (Private Mortgage Insurance) Fixed Interest Rate (Currently 4.875%) DON'T MISS YOUR OPPORTUNITY TO BECOME A HOMEOWNER!STOP IN OR GIVE US A CALL AND REQUEST A FREE PREQUALIFICATION
USDA Rural Development 9025 River Road Marcy, NY 13403 315-736-3316 ext 4
The office is accessible to individuals with disabilities. Any requests for reasonable accommodations can be made by contacting the office at the number above or by using our TDD# at 315-477-6447. PLEASE TAKE A NUMBER AND GIVE US A CALL!
July, 2009
USDA Rural Development Single Family Housing Program and Home Repair Loans and Grants Programs
Our agency provides Single Family Housing Programs, which may be of interest to members in your community. Attached are flyers which provide a brief outline of these programs. It is our goal to increase the number of single family homeowners in the area and to help current homeowners with limited income needing home repairs.
We would appreciate if you would make this information available to the general public. As a local official you may be aware of those in need. Any method you choose will help to reach more potential homeowners and existing homeowners in need of necessary repairs. (Several communities have put a link to our web site on their web site.) Please feel free to make copies of any information provided.
USDA Rural Development provides direct loans to persons with very low and low income who cannot obtain credit from other sources. Subsidy programs, which we offer, can assist households who often find a monthly mortgage payment is the same, or even less, than their monthly rent payment.
Our Direct Homeownership Loan Program offers loans for 33 years at the current interest rate of 4.875%. Depending on the borrower's income, taxes, insurance, and number of dependents, the subsidized interest rate could be as low as 1%. Once a loan has closed, subsidy is renewable annually. No down payment is required, and the closing costs may be included in the loan.
The 504 Program provides help to very low income home owner-occupants to make needed repairs. Houses must be modest single family homes in eligible areas. Loan funds are available for repairs to improve or modernize a home, make it safe and sanitary, or to remove health and safety hazards. For homeowners age 62 and over who cannot repay a loan, grant funds may be available to remove health and safety hazards or to remodel dwellings to make them accessible to household members with disabilities.
The Marcy USDA Rural Development office services Madison, Oneida and Herkimer Counties. By visiting http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do, you can view your counties' income limits and eligible rural areas. To qualify for USDA Rural Development financing, applicants must have an adequate credit history and have sufficient income to make the mortgage payment. The home purchased must be modest, in good repair (or be able to be repaired with loan funds) and located in an eligible rural area.
Attachments included are for the Single Family Direct Loans and the Home Repair Loans and Grants. If persons feel they may qualify please call our local office for additional information. Interested applicants will need to complete a pre-qualification application and an authorization to release information.
If your have any questions or concerns please call the local field office
Sincerely,
Paul Jasek Area Specialist
Attachments
Section 502 Program Objective: Section 502 of the Housing Act of 1949, as amended authorizes the Rural Housing Service (RHS) to provide financing to low and very low-income persons who cannot obtain credit from other sources, to obtain adequate housing in rural areas. Loan Purposes: Section 502 funds may be used to buy, build, rehabilitate, improve, or relocate an eligible single family dwelling and improve related facilities for use by the borrower as a permanent residence. Loan Types: 1. Initial Loans 2. Assumed Loans 3. Subsequent Loans 4. Non-program Loans Eligibility Requirements: 1. Must have the legal capacity to incur the loan obligation. 2. Applicants must demonstrate adequate repayment ability. Income must be sufficient to meet debt to income ratio requirements. The monthly principal and interest, property tax, and insurance (PITI) payment cannot exceed 29% of an applicant's repayment income in the "Very Low" income category and 33% in the "Low" income category. When the total of all other recurring monthly debts are combined with the PITI payment, this cannot exceed 41% of the applicant's repayment income. 3. Adjusted household income must not exceed the applicable low-income limit for the area. 4. An applicant must be a United States citizen or a non-citizen who qualifies as a legal alien. 5. Applicants must agree to and have the ability to occupy the dwelling on a permanent basis. 6. Current homeowners are not eligible for initial loans except as follows: a) Refinance an existing loan if the applicant is in danger of losing their home for reasons beyond their control. b) Their current dwelling is not structurally sound, functionally adequate, or large enough to accommodate the needs of the applicant. c) Make necessary repairs to a property financed with an affordable non-RHS loan. 7. Applicant must be unable to secure the necessary credit from other sources on terms and conditions that the applicant could reasonably be expected to fulfill.
8. Dwelling and Site Requirements: 1. Dwelling must be considered modest for the area. The property cannot be designed for income producing purposes, have an in-ground swimming pool, farm outbuildings or have a value that exceeds the maximum limit for the area. 2. Loans may be made only in rural areas designated by RHS. 3. Must have direct access from a street, road or driveway and the site must not be large enough to subdivide into more than one site under existing local zoning ordinances. 4. Site must not include farm service buildings. 5. Existing dwellings must be structurally sound, functionally adequate, in good repair, or to be placed in good repair with loan funds.
Security Requirements: 1. A first mortgage on property is security for a loan. 2. Must have ownership interest that is acceptable to the Agency (title, life, estate, possession rights, undivided interest, secure leasehold interest - certain conditions to apply).
Payment Assistance: 1. Applicants or borrowers who receive loans on program terms are typically eligible to receive payment subsidy if they personally occupy the property and have an adjusted income at or below the applicable "low" income limit for the area. 2. Each borrower on payment assistance will be reviewed at least bi-annually to confirm eligibility and to determine the appropriate subsidy. 3. Payment assistance is subject to recapture.
Other Information: 1. No down payment required. 2. Credit Report Fees: -$25.00 - Individual -$34.00 - Married applicant and co-applicant -$50.00 - Applicant and co-applicant (not married) 3. Escrow for taxes and insurance. 4. Repayment period is 33 years (30 years for manufactured homes). 5. Applicants are required to submit a complete, legible copy of most recently filed Federal Income tax return (with signatures), unless exempted from filing a return. Applicants who do not have a copy of their federal tax returns should contact their Regional IRS office for duplicates. See Attached sheet for Income Limits for the County you wish to live in.
LOAN LIMITS:
HERKIMER COUNTY . . . . . . . . . $172,632.00 MADISON COUNTY . . . . . . . . . . . $172,632.00 ONEIDA COUNTY . . . . . . . . . . . . $184,600.00
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