Mt. Lake Park, MD January 25, 2007 – USDA Rural Development State Director Marlene Elliott announced the availability of homeownership funds to rural residents. For more than 55 years, USDA Rural Development has been helping rural Americans become homeowners and in 2006, assisted 295 low to moderate income families in Maryland purchase their own home.

"Owning a home continues to be the oldest and best form of building equity in America and serves as the bedrock of the Bush Administration’s commitment to rural America, said Elliott. Helping to ensure that all rural residents have safe, affordable housing opportunities is a big job and we work with many nonprofit organizations and financial institutions to get this done."

The agency has a variety of programs that help people buy, build, rent or repair homes in rural areas with a population of 10,000 or less. No down payment is required. "Rural Development’s direct homeownership program is intended to serve rural families that may not qualify for conventional financing but can afford to repay a low interest loan on a modest home," said Tim Taylor, Rural Development Specialist. "The interest rate depends on the families’ income and the number of people in the household. Currently, the interest rate would be no higher than 6% and could be as low as 1% according to eligibility." In addition to the direct loan program, the agency also administers a homeownership guaranteed loan program that is available to families or individuals who may be able to get a loan from a bank but may need some extra support in order to qualify for bank financing.

The mission of USDA Rural Development is to enhance the ability of rural communities and rural residents to improve their quality of life. Rural residents in Garrett and Allegany Counties interested in Rural Development’s housing programs should call Tim Taylor at the USDA Service Center in Mt. Lake Park – (301) 334-6972. You can visit USDA Rural Development’s website at www.rurdev.usda.gov. TTY users should call 302-857-3585.