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Government touts rural home loan programs

The federal government is reminding potential Kentucky homeowners that they may qualify for two U.S. Department of Agriculture Rural Development programs to assist those with low to moderate incomes.

Its Direct Loan Program, which is for those with low- to very low-income individuals, offers no down payment requirement and closing costs may be included in a loan, according to a news release. Maximum loan amounts vary by county and have terms of 33 years and a current full-note interest rate of 4.875 percent. Applicants are also eligible for payment assistance to subsidize the interest on the loan payments.

The Guaranteed Loan Program, which is geared to moderate-income individuals, requires no down payment or private mortgage insurance and offers a 30-year fixed rate mortgage at bank interest rates. The applicant's income cannot exceed a county's income limit, which varies by county and family size.

All or parts of 118 Kentucky counties include eligible areas. Visit http://eligibility.sc.egov.usda.gov or www.rurdev.usda.gov/ky for more information.

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