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.
The 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. The program is available in rural communities of generally 35,000 people or less.
The maximum loan amount is $20,000 at a 1% interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. 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.
Time is limited to receive funds for the current fiscal year. Contact a USDA Rural Development Housing Specialist in your area today, to see if you qualify:
• USDA Rural Development, 1005 High Avenue NE, Willmar, Minn. 56201-2680. (320) 235-5612
• USDA Rural Development, 1810 30Th Street NW, Suite 3, Faribault, Minn. 55021-1843, (507) 332-7418
• USDA Rural Development, 1424 E College Drive, Suite 500, Marshall, Minn. 56258-2090. (507) 537-1401 • USDA Rural Development, 1567 Mcmillan Street, Suite 2, Worthington, Minn. 56187-2801. (507) 372-7783
USDA Rural Development loans and grants provide assistance that supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov/mn.