USDA Rural Development
increases maximum loan amount for home purchases

According to Patrick H. Brennan, State Director for the U.S. Department of Agriculture (USDA) Rural Development in New York, the maximum loan amounts for the Section 502 Single Family Housing Direct Loan Program increased effective October 1, 2004. The new limits will enable families to select from a wider range of existing homes and will also make new construction a more viable alternative where needed, he stated in a press release.

In Monroe, Genesee and Orleans Counties, the new maximum loan limit is now $166,250, in Wyoming County it is now $160,176 and in Niagara County it is now $173,850.

The Section 502 Single Family Housing Direct Loan Program provides affordable loans to low-and very low-income households to purchase or construct homes in a rural area. For most homebuyers, the term of the loan is 33 years and no down payment is required. The current interest rate for this program is 6.00 percent. However, payments are typically adjusted based on household income in order to make monthly mortgage payments more affordable.

Monroe, Genesee, Orleans, Niagara and Wyoming Counties are served by the USDA Rural Development's Batavia Office. For information or to apply for assistance under USDA Rural Development's Section 502 Home Purchase program, visit or contact the office by mail, phone or e-mail at: 29 Liberty Street Suite #2, Batavia, NY 14020, 585-343-0442 ext. 2200, rdbatavia@ny.usda.gov.