Housing Help in Moberly
Annette Schulte, with the USDA, answers phones in her office everyday. Some people on the other end of the line are asking questions about the agency's Rural Development Program. It offers a way for home buyers in rural areas with populations of 20,000 or less to buy their own home.
"It's a three-way process," Schulte said. "The applicant goes to the bank, and the bank seeks a guarantee from the government."
A guarantee means that if an applicant defaults on a loan, the government would reimburse the bank to cover a large portion of its losses.
"Thus making it a loan that the banks like, and that they can offer 100 percent financing for, with no down payment," Schulte said.
To qualify for the program, the home owner must not currently have adequate housing, they must plan on living in the new house, they must be a U.S. citizen, and they must have sufficient income and credit to meet the obligation.
Moberly resident Kristen Harms and her family moved into the home this week after discovering the 30-year fixed mortgage rates.
"It helped us because we didn't have a whole lot of credit built, we didn't have a whole lot of money down, the 100 percent guarantee really helped us," Harms said.
The USDA says the program is becoming increasingly popular as more Americans are looking to own their own homes.
Applications for the guaranteed housing loan program are available through the links on this page.