NECAC to help with USDA home loans in West-Central Illinois
The not-for-profit North East Community Action Corporation (NECAC) has spent years developing, implementing and managing homeownership programs and housing developments in Northeast Missouri.
Now, the agency has been authorized to process direct home loans for USDA Rural Development in Adams, Pike, Brown, Hancock, McDonough and Schuyler counties in Illinois.
The move is expected to ease the process for low-to-moderate-income people who apply for USDA Section 502 home loans.
“This will help families in West-Central Illinois access USDA loans a lot faster,” said NECAC Deputy Director for Housing Development Programs Carla Potts. “In addition to USDA offices, residents will be able to contact us. We’re very excited about this opportunity.”
Potts said people who are interested in 502 home loans can contact NECAC directly at 573-324-6622 or toll-free at 1-800-748-7636. In addition, the agency will save residents time and travel by reaching out to West-Central Illinois communities in the weeks ahead to discuss the program. NECAC Homeownership Programs Director Debbie Smith is leading the outreach effort and may be reached for information by e-mail at firstname.lastname@example.org.
Section 502 loans are used mostly by income-qualifying people to buy homes in rural areas. Families must be able to afford the mortgage payments, including taxes and insurance. Loans are for 30 years, with the interest rate set by the lender. There is no down payment.
“Section 502 loans are another option that families in our area have to realize the dream of home ownership,” Potts said. “We welcome the opportunity to put more people on the path to owning a home.”
As part of the program, NECAC offers home ownership classes that teach participants about housing opportunities and financing, obstacles to home-ownership, record-keeping, understanding credit, cash flow, meeting with financial institutions, getting a loan, taxes and other topics.
Each year, NECAC homeownership programs put more than 50 families on the road to a house purchase. In addition to USDA Rural Development, the agency works in partnership with the U.S. Department of Housing and Urban Development (HUD), the Federal Home Loan Bank, NeighborWorks America, Rural LISC, the St. Louis HOME Consortium and other organizations to provide home-ownership opportunities.
NECAC was the first non-profit in Missouri to process 502 loans and has closed 14 loans and worked with more than 80 families.