A new designation will allow the not-for-profit North East Community Action Corporation (NECAC) to better assist homebuyers in Missouri, Illinois and Iowa.USDA Rural Development has authorized NECAC to serve as an intermediary loan processor for the 502 Direct Loan Program. NECAC will work with nonprofit agencies that package the loans for homebuyers, review loan applications and send them on to USDA for approval.“This is a wonderful recognition and opportunity for NECAC to work with other partner agencies to make the dream of homeownership a reality in the states of Missouri, Illinois and Iowa,” said NECAC Deputy Director for Housing Development Programs Carla Potts.“We hope more nonprofits will join us in this important effort.”NECAC, a 12-county area social service, community health and public housing agency headquartered in Bowling Green, has spent five decades developing, implementing and managing homeownership programs and housing developments in Northeast Missouri.In 2014, the agency became the first not-for-profit in Missouri authorized to process 502 Direct Loans. Last year, the authorization was expanded to allow NECAC to process the loans for homebuyers in Illinois.“We are excited about being an intermediary for three states,” said NECAC Homeownership Programs Director Debbie Smith. “We are very appreciative of USDA because this allows us to expand our reach.”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 33 years, with the interest rate set by the lender. There is no down payment.As part of the program, NECAC offers home ownership classes that teach participants about housing opportunities and financing, obstacles to homeownership, 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.Smith 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, NECAC personnel host regular instructional meetings about homeownership programs and will meet individually with people in the three states.NECAC