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PROGRAM OFFERS FINANCIAL RELIEF FOR RURAL BORROWERS
Rural Alabama homeowners may be able to reduce their monthly mortgage payments thanks to a pilot program launched Feb. 1 by the United States Department of Agriculture.
According to a release issued by USDA Agriculture Secretary Tom Vilsack, the Single Family Housing Guaranteed (SFHG) Rural Refinance Pilot Program will help rural borrowers refinance their mortgages to reduce their monthly payments.
“This pilot program will help homeowners to take advantage of historically low interest rates,” said Vilsack. “By working closely with lenders, we are helping rural homeowners protect one of the most important investments they will ever make.”
USDA Rural Development estimates 235,000 homeowners will be eligible to refinance their loans. Terms cannot exceed 30 years, and no cash out is permitted to the borrower. To qualify for the reduction, borrowers must have made their mortgage payments on time for 12 consecutive months.
The two-year pilot program will operate initially in 19 states, applying only to homeowners who have loans that were made or guaranteed by USDA Rural Development. States eligible were among those hit hardest by the downturn in the housing market.
Other states selected for the program include Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, South Carolina and Tennessee.
For more information, contact Guaranteed Loan Coordinator Brian Yarbrough at (256) 532-1677 ext. 4, or email brian.yarbrough@al.usda.gov.
To listen to the full-length interview with Vilsack regarding the new program, click the link below:
http://ocbmtcreal.usda.gov/player/player.html?base=http://ocbmtcreal.usda.gov/&uri=/USDA/secy&stream=020112b
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