(Marcy, NY – June 14, 2011) June is Homeownership month. This year’s theme is “Rural Housing/Rural Jobs.”

Activities and events in communities across the country will focus on housing’s role in creating jobs and stimulating economic activity.

According to the National Association of Realtors (NAR), the sale of an existing median- priced home ($173,000 in 2010) generates $58,529 in economic activity. This includes $15,570 in direct real estate industry support (fees for real estate agents, title companies, mortgage brokers); $5,235 in furniture, home furnishings, landscaping, etc; and $9,987 in stimulated economic activity. New home sales generate even more economic activity, including the costs of construction materials and construction jobs, according to NAR.

USDA Rural Development has been very successful in helping rural residents live the American dream of homeownership. Through May 31 of the current fiscal year, which started October 1, 2010, Rural Development has financed approximately 80,000 home loans.

The Obama administration is committed to ensuring that America’s rural communities are vibrant and thriving economically. USDA has made an unprecedented commitment to this goal by supporting affordable rural housing.

During and uncertain housing market, USDA Rural Development has helped contribute to the nation’s economic recovery.

USDA Rural Development has two loan programs that provide affordable homeownership opportunities to rural Americans: the Single Family Housing Guaranteed Loan program, and the Single Family Housing Direct Loan program. Interested parties should contact the local USDA Rural Development office in Marcy at 315-736-3316 ext 4. A list of other offices is available at http://www.rurdev.usda.gov/StateOfficeAddresses.html.

USDA uses sound underwriting criteria to ensure borrowers are able to repay their loans. By doing so we’re helping to keep people in their homes.

USDA is helping to build the foundation of a new rural economy that will be built on a set of pillars that combine the successful strategies of today and the compelling opportunities of tomorrow.

Expanding and preserving homeownership is a major part of the foundation for a stronger, more prosperous rural America.

While most Americans are familiar with the historic mission of the USDA, many may not know the Department plays a major role in helping to provide homeownership and home repair assistance to millions of citizens living in rural areas.

For more than 60 years, USDA has worked to increase homeownership opportunities for rural Americans through a combination of guaranteed (by lender partners) and direct loan funds.

A healthy American economy depends on a prosperous rural America, which supplies much of our nation’s food and water and safeguards our environmental heritage. Its role in establishing our nation’s energy independence is growing every day.

Direct Loan Program

The direct loan program provides government loans to low-income families or individuals desiring to live in an eligible rural area. Borrowers must be able to afford mortgage payments, including taxes and homeowners insurance, and have a reasonable credit history. Direct loans are for 33 years, although 38-year terms are available in some cases. Payment assistance also is available for many qualifying borrowers.

Guaranteed Loan Program

The guaranteed loan program is administered in partnership with private lenders and is designed to assist low- and moderate-income borrowers. In the program, the loan is made by a bank, credit union or other financial institution, and Rural Development guarantees a large percentage of the loan on the borrower’s behalf. The guarantee enables lenders to offer more affordable mortgage terms. The loans have a two percent guarantee fee and this can often be rolled into the mortgage, enabling lenders to finance up to 103.5 percent of an appraised home’s value.

The First Step

Rural Development operates an extensive income and property eligibility web site at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do. Potential applicants can find out if the home they’re interested in is in an eligible area – the loan programs are restricted to rural areas – and find income limits for their locations.

Prospective homebuyers should call the USDA Rural Development Service Center in Marcy, NY at (315) 736-3316 Ext. 4 to obtain detailed information on the loan programs and assistance in helping prospective home buyers determine which program is right for them. The Marcy Office serves Herkimer, Madison and Oneida Counties.