The U.S. Department of Agriculture, Rural Development has announced a decrease in the home mortgage interest rate for its section 502 Homeownership Direct Loan Program.

South Dakota Senior State Family Housing Specialist, Krista Mettscher says there are two separate home ownership programs where applicants can apply and qualify for home financing with zero money down

Mettscher says the Direct Program and the guarantee program have separate income categories

Mettscher says a credit score of 640 or greater is preferable, however they can still work with a lower score. Mettscher says it can also be helpful to gather together monthly bills, and also to make sure you have a good idea of what your income is before applying for either of the loans.

You can visit the Rural Development USDA website for more on the loans