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Van Buren loses rural development status for loans

A western Arkansas city has lost its rural development status for home loans.
Credit: George Doyle Getty Images
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VAN BUREN, Ark. (AP) - A western Arkansas city has lost its rural development status for home loans.

The Southwest Times Record reports families looking to build homes under rural development loans will have to search for property outside of Van Buren city limits.

According to Karen Phillips with a western Arkansas development council, the city had been at risk of being cut from the program because of its population of 23,000.

Phillips says she thought the city could still meet the program's requirements after a federal farm bill was signed into law in February. It raised the population number for loan eligibility up to 35,000.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)But Phillips says another stipulation in the law makes the city ineligible because areas have to be "rural in character" to qualify.

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