Watseka Family Part of Homeownership Month Celebration

Representatives from U.S. Department of Agriculture Rural Development kicked off the observance of June 2008 as National Homeownership Month by stopping at the home of Watseka resident Sherry Bruner. Bruner and her two children lived in a trailer until the January flood waters lifted the trailer off its foundation and bent the frame when the trailer settled back on the foundation.

Bruner and her two children moved into their new home on Fourth Street on May 19 thanks to Rural Development financing set aside for flood victims.

The federal agency offers home loan programs for homebuyers in communities which typically have less than 20,000 population and are in non-metro areas. The agency is taking the opportunity this month to let Illinois residents know that buying a home may not be out of reach.

"This is a great time for people who live in rural areas to buy their first home or upgrade to a new home," said Rural Development Housing Director Barry Ramsey. "Our home loan programs make buying a home very affordable because they require no down-payment and no monthly mortgage insurance payments. Homebuyers don’t have to have been affected by the flood to qualify."

"I met with Sherry on Feb. 14 about a repair loan for her trailer," said Brian Bend, an Area Specialist with Rural Development in the Pontiac office. "We eventually agreed that it would not be cost effective to repair her home. I suggested she consider a home outside the flood plain."

Bruner found a home in her price range that she liked. About four weeks after she made an offer, she closed on her home. "After living with family since January, she and her children Dakota and Taylor were very excited to move into their own home," Bend said.

According to Bend, the agency’s guarantee program is easy to use. Homebuyers with moderate incomes work with local lenders of their choice. The lender makes the credit decision, but Rural Development does not have a minimum credit score or limit the price of the house. Homebuyers work with the lender’s forms. Rural Development turns around a lender’s request for a guarantee commitment within 48 hours. Using the program causes no delay in closing the purchase price.

"We’re inviting local homeowners and first time homebuyers to check with a local lender about the cost of buying a home with a Rural Development guarantee," said Ramsey. "Homebuyers will be surprised at how affordable their monthly payment can be when there’s no down payment, no mortgage insurance premiums, competitive fixed rate interest, and a 30 year term."

Low cost financing is also available directly from Rural Development to families and individuals with lower incomes to ensure they can buy, build or improve a safe home. Rural Development’s direct loans include a payment subsidy, so they do have a maximum purchases price. However, these limits are generous, ranging from $142,000 up to $200,000 depending on the county.