The dream of buying a home in rural Iowa is getting cheaper. Home mortgage rates from the U.S.D.A.’s Rural Development Agency have dropped to just below 2.875%.
Krista Mettscher, a rural housing specialist with the agency, says there are income and other limits with the low rate, but even those with credit issues could 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 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.”
The program is available in most rural communities across the region.
(By Jerry Oster, WNAX, Yankton)