The U.S. Department of Agriculture Rural Development agency has federal money available in its Single Family Housing Direct Loan program for eligible low-income rural residents who wish to purchase or build a home. No down payment is required and loan repayment is based on the applicant’s income.

“It’s not uncommon for rural families to think they can’t afford to purchase a home without substantial savings or a large down payment,” said Ohio Rural Development Loan Specialist Lori McCoy. “Yet, last year alone, our Direct Loan program helped more than 200 income-eligible families in Ohio realize the dream of homeownership. We’re on track to help even more families in 2017, continuing our important work as the cornerstone of affordable housing.”

USDA Rural Development offers 100 percent financing with a 33-year term and a fixed interest rate; currently 3.25 percent. Some loans qualify for payment assistance, which can drop the effective loan rate to as low as 1 percent. This often results in a monthly payment lower than the cost of the borrower’s rent.

USDA-financed homes must be located in eligible rural areas, which can be found here: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

The home must be considered modest, and the purchase price cannot exceed established loan limits (recently increased to $170,000 in Clermont County and $180,000 in Butler, Hamilton and Warren Counties, for example).

Applicants must have a stable source of income, a satisfactory credit history, and be able to demonstrate repayment ability.

They also must meet established county income limits, which in Butler, Clermont, Hamilton and Warren Counties are as follows:

Income limits may be higher in some areas. To find your county’s information, visit https://www.rd.usda.gov/files/RD-DirectLimitMap.pdf, select Ohio on the map, and then locate your region or county.

To learn more about home ownership or home repairs for current homeowners, please call the following number: (937) 393-1921 ext. 4, or you can also email lori.mccoy@oh.usda.gov.

To learn more about all USDA Rural Development programs, please visit the following website www.rd.usda.gov.