Champaign, IL, May 10, 2011 -- Contact: Elizabeth Messervey (618-993-5396 ext. 124)
USDA Rural Development Offers Very Affordable Home Repair Loans
Marion, Illinois, May 10, 2011—Help is available for homeowners who have suffered damages due to the recent severe weather and have limited resources with which to make repairs. USDA Rural Development can make one-percent home repair loans to eligible homeowners with modest incomes.
“We are concerned that homeowners in many southern Illinois counties have had damage to homes as the result of flooding,” said Illinois Rural Development State Director Colleen Callahan. “As water recedes and the threatening conditions pass, we encourage homeowners needing financial help with repairs to give us a call.”
Funds can be used for a wide range of repairs, including plumbing, electrical, flooring, and foundation problems. Funding can also be used for repairs or replacement of damaged heating and air conditioning systems, roofs, windows and siding.
The loan limit for an individual applicant is $20,000. Loans have a one percent interest rate and can be repaid over a period of up to 20 years. The program allows the homeowner to make multiple repairs and keep payments affordable. For example, a loan of $5,000 over 20 years would cost the homeowner about $23.00 a month.
Homeowners with very-low income, base of the county in which they live, can apply. For example, a two member household in Saline Co. with an adjusted gross income of $21,850 would be eligible. A family or four with household income of $27,300 would also be eligible. Applicants must own and occupy the home, be able to repay the loan and have an acceptable credit history.
Grants may be available to homeowners 62 or older with very low income and without the ability to repay a loan. Grant funds are limited but may be used to remove health and safety hazards or make the home accessible. Grants have a life-time limit of $7,500. These grants are often combined with loans to increase the amount available for repairs.
A quick call to the Rural Development office in Marion can answer any questions about the agency’s repair loan program. They can be reached at 993-5396, ext 120. Information is also available online at www.rurdev.usda.gov/il.
Rural Development provides financing and technical assistance to foster growth in homeownership, business development, and critical community and technology infrastructure. USDA is an equal opportunity provider, employer and lender.