Where’s the Beef? USDA Home Loans help North Idahoans with Their Dreams!

When most people think of the USDA they think of mad cows or frustrated bulls. Or perhaps the entertaining show NCIS with the famous line where the team announces “NCIS!” to the suspect at which point he replies, “Meat inspectors?”

Few people know that NCIS also provides home loans. No – that’s USDA. That’s right; the U.S. Department of Agriculture has a home loan program. Under the Direct Loan program, individuals or families receive direct financial assistance directly from the Housing and Community Facilities Programs in the form of a home loan at an affordable interest rate.

Most of the loans made under the Direct Loan Program are to families with income below 80% of the median income level in the communities where they live. Since HCFP is able to make loans to those who will not qualify for a conventional loan, the HCFP Direct Loan program enables many more people to buy homes than might otherwise be possible. Direct loans may be made for the purchase of an existing home or for new home construction.

They also have a loan guarantee program, which assures the lender that they will be paid in the event of default. In times of tightening credit this can be the difference between obtaining a new home – or not.

Currently the USDA is approving loans and loan guarantees for Post Falls Idaho and Rathdrum Idaho. Other rural areas in Northern Idaho may qualify as well. Coeur d’Alene Idaho and Hayden Idaho do not qualify for the USDA program. Loan amounts vary but a family of four earning $72,000 annually may qualify for a home costing $275,000 and a family of five earning $92,000 a year may qualify for a home costing as much as $350,000!

The rule for income is up to 80% of the areas median income to qualify for a direct loan and up to 100% of the areas median income to qualify for the loan guarantee. The applicant must be “without adequate housing.” Additionally payment subsidies are available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories.

No down payment may be required!

Idaho Income Requirements

Obviously there is a bit of interpretation in how some terms are defined. The only way to know for certain if you qualify is to apply if you think you might be a candidate for either the direct loan program or the loan guarantee program.

As for the NCIS loans we hear that they do provide free housing as well as free food to qualified applicants. However most people choose not to qualify for their type of housing assistance.