The U.S. Department of Agriculture Rural Development agency is reducing its interest rate on direct home loans to four percent. The change is effective on March 1.
This is the second consecutive month that Rural Development has reduced its direct home loan interest rate. The previous rate was 4.375 percent.
Under the direct home loan program, low- and very-low income families and individuals receive a loan directly from USDA Rural Development to buy, build or improve homes in rural areas.