USDA Rural Development’s Direct Loan Program Offers Financing Options for Homebuyers

U.S. Department of Agriculture Rural Development Acting State Director Dave Schwobe announced that funding is available for Wisconsin residents to purchase a home without a down payment through Rural Development’s Direct Loan Program.

“Home ownership should be an achievable dream,” Schwobe said. “In many cases, USDA Rural Development’s Direct Loan Program provides the only way for rural residents to buy a home.”

Financing is available to households that are below 80 percent of the median household income for the county. The income limit for most counties in Wisconsin for a one-person household is $34,150 and a six-person household may earn up to $56,600 and be eligible. Higher income limits may be applicable in some counties. These loans are made directly through USDA Rural Development’s Area Offices. The current interest rate is 3.25 percent but if you qualify for a subsidized rate, your interest rate could be as low as one percent. Monthly principal and interest payments on a $100,000 loan would be $413 plus taxes and insurance. If the household qualifies for a subsidized rate, the principal and interest payment could be further reduced to $297 per month.

For more information on USDA Rural Development’s Direct Loan Program and to verify if your income and property qualify, call 715.345.7611 or visit rd.usda.gov/wi.