CHIPPEWA COUNTY - USDA Rural Development is offering a subsidized government program designed to assist low income, credit worthy families and individuals in purchasing existing or building new homes in rural areas.
To qualify, applicants must be under the low-income limit for the county in which they would live, have an acceptable credit history, and meet certain debt to income ratios. The current interest rate is 6 percent fixed (33 years); no down payment is required; and funds for repairs (and sometimes closing costs) may be included in the loan. The unique feature about USDA Rural Development mortgages is that the payments can be subsidized, meaning that part of the monthly payment is paid by the government, based on the applicant's circumstances.
The loan officer who serves this area is Sue Williams who can be reached at 906-632-9611, ext 114. She can prequalify you over the telephone if you supply her with your annual gross household income and monthly debt payments. Deductions to the annual gross income are made for the number of children in the household, child care expenses and persons with disabilities.
USDA Rural Development does not compete with other lenders. In fact, USDA Rural Development will participate in a joint loan where another lender contributes part of the money as a first mortgage and USDA Rural Development contributes the balance of funds as a second mortgage. If an applicant appears to qualify for a joint loan, they will be asked to apply for at least 20 percent of the loan with another lender.
USDA Rural Development serves as the lead federal agency for rural development needs by offering financial and technical assistance to individuals, businesses and communities. USDA Rural Development programs include funding for day care centers, fire trucks and other community facility projects; the purchase, construction or repair of homes; and loans and guarantees to rural businesses to save or create jobs. For more information on the programs offered by USDA Rural Development, visit the website at www.rurdev.usda.gov/mi.
