 The State Bank of Lincoln was one of just a few Illinois lenders
that saw the new program as a way to help their customers with
moderate to low income qualify to buy a home. With a guarantee from
Rural Development, the bank was able to offer home loans with no
down payment, a fixed interest rate and a long term. Since its
adoption of the guaranteed loan program, the bank has used the
program to make affordable home loans to thousands of rural
homebuyers. The bank has also become a USDA nationally approved
lender, making guaranteed loans in multiple states.
Jeanne Scheurer, State Bank of Lincoln vice president, says:
"This is a good program for borrowers that have no money to put
down, and the Rural Development's housing staff is easy to work
with. We are able to assist borrowers that we otherwise could not
help."
Colleen Callahan, Rural Development state director, presented a
plaque to Steve Aughenbaugh, bank president, in recognition of the
bank's 20th anniversary with the loan program.
Callahan said, "The State Bank of Lincoln has been an integral
part of the progress of this community and the surrounding area for
more than a century. Their early adoption and continued commitment
to the GRH program is a good example of how they seek out ways to
help their community prosper."
In the first year of the program, with strong support from the
State Bank of Lincoln, a total of 93 Illinois buyers used the USDA
guarantee to purchase their homes. By 1995, the number of guaranteed
home loans had grown to 540, surpassing Rural Development's direct
home loan program that was authorized 46 years earlier. The program
continues to expand, topping 4,500 guarantees last year throughout
rural Illinois.
Rural Development has continued to find ways to keep the GRH
program responsive to the changing needs of homebuyers and the
housing market. In 1998, the program's loan limitation was lifted so
that moderate-income homebuyers could purchase any home they could
afford in a rural community. In 2001, the agency permitted existing
USDA customers to refinance their mortgages at a reduced interest
rate. The American Reinvestment and Recovery Act provided $10
million in supplemental funding to support homebuyers during the
housing crisis.
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Other recent adaptations included a change in the fee structure
that ensured funding for guarantees would be available year-round
and not dependent on annual congressional appropriations. This year,
Rural Development in Illinois and 18 other states, where homeowners
were hardest hit by financial markets, were selected to offer a
streamlined refinancing program to existing USDA housing customers
to obtain a reduced interest rate loan with lower closing costs.
Finally, in response to tightening federal budgets, Rural
Development centralized the processing of GRH loans to ensure quick
and consistent responses to guarantee requests.
Interested homebuyers can call the State Bank of Lincoln at
800-847-1536 or Rural Development at 866-481-9575 for more
information on the guaranteed home loans.
Rural Development has more than 40 programs that foster growth
and economic stability in rural areas by providing affordable
financing and technical assistance. In addition to housing, support
is available for regional food systems, broadband and biofuel
infrastructure, business development, and community needs. More
information on USDA Rural Development programs is available on the
Web at
www.rurdev.usda.gov/il.
[Text from file received from
USDA Rural Development,
Illinois]
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