ST. PAUL, Minn., Apr 29, 2014 -- Rural Development
375 Jackson Street | Suite 410
St. Paul, Minnesota, 55101
Release No.: 00030
Nikki Gillespie, (651) 602-7786
USDA Rural Development Announces Home Loan Availability
ST. PAUL, Minn. – USDA Rural Development State Director Colleen Landkamer today announced the availability of funding for low-interest home loans for individuals and families looking to achieve homeownership.
Rural Development’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 one percent with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. The program is available in rural communities of 20,000 people or less in population.
“USDA Rural Development serves people that can really use the assistance,” said a borrower in Pine City, Minn. “Because of my restricted income, Iwas unsure of whether I would qualify for a loan that fit my budget, but Rural Development has an application process and programs suited for people with limited income.”
To ensure quality customer service, applicants to the Direct Home Loan Program work one-on-one with a local Rural Development staff person throughout the entire application process. In addition, USDA Rural Development strives to safeguard your homeownership future by requiring a homeownership education course to help you better prepare for this exciting step.
“During the homeownership classes they really make sure that you understand everything there is to know about owning a home,” said a single father in Cambridge, Minn. who was able to purchase an affordable home for he and his son after years of renting. “Payments, budgets, expenses, home maintenance – the homeownership course covers all of that, so you are fully prepared before buying the house.”
In addition to providing home ownership opportunities, Rural Development’s home loan programs increase economic development and job creation in rural communities. According to the National Association of Realtors, the sale of an existing median-priced home generates over $58,000 in economic activity. This includes direct real estate industry supports, home furnishings, appliances and landscaping and other economic activity.
Rural Development has invested approximately $2.3 billion since 2009 to increase homeownership in rural Minnesota. In addition to the Direct Home Loan Program, Rural Development offers a home loan guarantee program. The guarantee program is targeted at median-income individuals and families and “guarantees” loans made through traditional lenders such as banks or mortgage brokers.
A home repair program through Rural Development helps low-income homeowners make essential home repairs such as replacing a furnace, installing new windows or fixing a leaky roof. The maximum repair loan is $20,000 repayable over 20 years at one percent interest. Grants are available to homeowners over the age of 62 and must be used to remove health or safety hazards.
Rural Development has 12 offices around the state to assist customers. To find the office that serves your community, please visit www.rurdev.usda.gov/mn or call 651.602.7800.
USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users)