USDA enables families to purchase homes

McCOOK, Nebraska -- USDA Rural Development Nebraska State Director Maxine Moul and staff along with housing partners celebrated National Homeownership Month in McCook, Nebraska, recognizing two families for achieving homeownership. This year's National Homeownership Month's theme is "USDA: Bringing Rural America Home."

"I congratulate the families on their new role as homeowners," said Moul. "They will surely enjoy the extra space that their new homes afford them. A home is not only an opportunity for an improved life style, but is also an investment for the families and the community. USDA Rural Development is pleased to be able to assist in the financing of the two home loans through our Guaranteed Rural Housing loan program."

Jesse Hayden and Christina Lee found out that they were going to be proud parents and knew that they needed to make a change in their living quarters. They were living in a single wide trailer, which was adequate for them, but they needed to think about their new addition. They looked at a McCook Economic Development Corporation's Purchase, Rehab, Resale home at 302 East 5th in McCook and they were hooked.

McCook National Bank utilized USDA Rural Development's guaranteed loan program to fund the purchase. Nebraska Investment Finance Authority's (NIFA) low 2.5 percent monies were also used.

MEDC's PRR program funded by the Nebraska Department of Economic Development purchases homes that need updating and then sells them to individuals that fall within the program guidelines. Through the program the couple also received grant funds for closing costs and down payment assistance. There is no interest or payments and the obligation is forgiven after five years if they follow the guidelines. Funding that Nebraska Housing Developers Association (NHDA) had available through Federal Home Loan Bank was also obtained.

These housing partners joined forces to place Hayden and Lee in a 1920's bungalow that offers 1,768 square feet with four bedrooms, two bathrooms and is energy efficient.

The second homeownership story stems from a trailer that was quickly becoming too small for Glenn and Liz Taylor and their two boys, Steven and Matthew.

Glenn is a lifelong resident and Liz is also from the area.

They knew they wanted to raise their boys in McCook, so they started looking for a home that was larger and a property that had a big yard for the boys.

MEDC met the Taylors when they attended a home buyer education class and determined that they qualified within their program guidelines.

AmFirst Bank identified USDA Rural Development's Guaranteed Rural Housing loan program as a good fit for the couple. NIFA's low interest rate was also used.

With the partnership and collaboration of all the entities, the Taylors were able to purchase a 988 square foot, three bedroom home with a large fenced back yard. When asked what part of the house sold them the most, Liz said "Everything, the way our boys reacted to it, the feeling we got just by walking inside."

USDA Rural Development has been successful in helping rural Nebraska residents to live the American dream of homeownership. USDA plays a major role in helping to provide homeownership and home repair assistance to citizens living in rural communities.

Since 1979, Rural Development in Nebraska has assisted more than 22,300 families in becoming homeowners and has provided more than $1.27 billion of home loans in the state.

During the last two fiscal years, USDA programs have provided more than $2.9 million in Red Willow County for home purchases that have assisted 38 families to become home owners. For Fiscal Year 2013, USDA Rural Development in Nebraska received an allocation of almost $146 million for financing home loan purchases in rural communities for the state.

USDA Rural Development has two loan programs that provide affordable homeownership opportunities to rural Americans: the Single Family Housing Guaranteed Loan program, and the Single Family Housing Direct Loan program. Both these programs allow for 100 percent financing and affordable rates and terms.

Eligibility is based on income, acceptable credit and repayment ability and the property must be located in rural areas with populations not exceeding 20,000. However, Norfolk and Columbus are also currently eligible until Sept. 30, 2013.

USDA uses sound underwriting criteria to ensure borrowers are able to repay their loans. By doing so USDA Rural Development is helping to keep people in their homes.

You can visit the Agency eligibility website at http://eligibility. sc.egov.usda.gov to determine if you are within the established income limit based on the size of household and county and if the property is located within an eligible area.