USDA Rural Development has funding available 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 one percent 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 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.
Linda says
If anybody has a solution to my problem, please respond . Thank you
Linda says
I am interested in purchasing a home in the Lake Isabella Ca 93240 area. I am preapproved for a USDA .gov direct rural single-family home loan for $143,000.00. The problem I am having is finding a stick built home for the loan amount most of the homes available are manufactured homes which are not financed with USDA.gov. If you know of any source that can provide information on obtaining a grant or how to qualify for a higher mortgage so that I can purchase a home the information would be greatly appreciated because I am renting an uninhabitable mobile home and I desperately need to move. Most acceptable homes that can be financed with USDA.gov direct loan are selling from $170,000.00 and above.