USDA Rural Development has funding availabile for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.
USDA’s Direct Home Loan Program offers financing to qualified very low- and low-income applicants that are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as 1% with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. Generally, rural areas with a population less than 35,000 are eligible.
The maximum loan amount for repair is $20,000 at a 1% interest rate, repayable for up to 20 years. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace.
Contact a USDA Rural Development employee today in your area to see if you qualify. For more information on Single Family Housing in the following counties: Blue Earth, Dakota, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Mower, Olmsted, Rice, Scott, Steele, Wabasha, Waseca, and Winona Counties; please contact USDA Rural Development at 1810 30th St. NW, Suite 3, Faribault, Minn. 55021 or (507) 332-7418 ext. 4. You can also visit USDA’s website at www.rd.usda.gov/mn.