The dream of buying a home in rural Nebraska is getting cheaper.
Home mortgage rates from the USDA’s Rural Development Agency have dropped to 2.875%.
Krista Mettscher, a rural housing specialist with the agency in Lincoln, says there are income and other limits with the low rate, but even those with credit issues may qualify.
“Generally speaking, if you have a credit score of about 640, you can get in with some reduced documentation,” Metscher says. “We can do some loans with credit scores under the 640, it just may take a little additional documentation.”
Mettscher says some people could find even lower interest rates.
“You can qualify for a subsidized interest rate based on your household size and income,” she says. “You might even qualify for anything from the 2.875 down to a 1% interest rate on a 33-year loan.”
There are mortgage limits of between $170- and $190,000, depending on the county. The program is available in most rural communities.
By Jerry Oster, WNAX, Yankton