Greg Branum, Missouri State Director for USDA Rural Development, announced that $150 million in guaranteed rural housing loans have been made in rural Missouri so far this fiscal year.

"Owning your own home is part of the American Dream," said Branum. "The new increased loan limits on the maximum home mortgage available for the guaranteed program even makes it easier for more individuals and families to own their dream home." 

With this program, a conventional lender (bank, saving and loan, mortgage company, etc.) actually make the loan and Rural Development guarantees repayment of the loan.  "We are so fortunate to have several approved guaranteed lenders across Missouri," Branum added.

Through the Farmington Local Office, serving the four county area of Iron, Madison, St. Francois, and Ste. Genevieve Counties, nearly $ 15,000,000 in guarantees have been provided to approximately 200 rural residents this year," said Kevin Hinkebein, Rural Development Manager, based out of Farmington.

Branum points out that through Rural Development's Guaranteed Housing Loan Program more individuals and families may be eligible to become homeowners of a new home or an existing home.  For households that qualify for financing, no money down is required since 100% 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.

To be eligible for Guaranteed Rural Housing financing, applicants must have an adequate and dependable income, be legally able to incur the debt, have an income that does not exceed the moderate income limit for the area, have a satisfactory credit history and have adequate repayment ability.  For example, in the four counties mentioned, in order to meet the income requirement, a household would need to have an adjusted annual income less than $54,850 for a two person household, $61,700 for a three person household and $68,550 for a four person household.  There are no restrictions on the size or cost of the home financed, the amount of the household's income determines the maximum loan amount. 

In order to utilize the Guaranteed Rural Housing Program, homebuyers should make application directly with a participating conventional lender.  When contacting a lender, interested homebuyers are encouraged to relay to the lender that they are interested in a USDA Guaranteed Rural Housing Loan. 

Anyone seeking more information about homeownership financing or any other USDA Rural Development program may visit the homepage at http://www.rurdev.usda.gov/mo/ or by contacting, Kevin Hinkebein, Rural Development Manager, at kevin.hinkebein@mo.usda.gov by e-mail, or visiting the office at 812 Progress Drive, Farmington, Missouri, or calling  (573) 756-6413 extension 4 .

"Committed to the future of rural communities."

"USDA is an equal opportunity provider, employer and lender."

To file a complaint of discrimination write USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W.,

 Washington, DC  20250-9410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD).