NEWS RELEASE                                                         Contact: Kathy Beisner (302) 697-4333

INCREASE IN DOLLARS AVAILABLE FOR RURAL HOME LOANS

Camden , DE January 28, 2004 – President George W. Bush on Friday signed into law the omnibus spending bill, which includes an increase in rural home loans available.  The announcement reflects an 11% increase nationally over last year’s funding, according to Marlene Elliott , Delaware and Maryland Director for USDA Rural Development.

“Although we continue to see a rise in the number of homeowners because of the low interest rates that are available, there remains a gap between the homeownership rates of minorities and nonminorities, said Elliott.  The boost in available homeownership dollars reflects the Bush Administration’s committment to making sure this continued growth reaches all of our citizens regardless of race, creed, color, or place of birth.”   President Bush has called upon the entire housing industry to expand minority homeownership across the nation and has set a goal to help at least 5.5 million minority families become homeowners by the end of this decade. 

 USDA Rural Development is helping the President increase minority homeownership by encouraging minority participation in their homeownership programs by 10% by the year 2010.  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 home ownership 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 Drew Clendaniel , Rural Housing Program Director.  “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  6.375% 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 communites and rural residents to improve their quality of life.   Anyone in Delaware or Maryland interested in Rural Development’s housing programs should call the USDA Service Center nearest them -- listed in the blue pages under Agriculture, visit their website at www.rurdev.usda.gov, or call the Delaware and Maryland State Office at (302) 697-4300.  TTY users should call (302) 697-4303.

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USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer.  Complaints of discrimination should be sent to: USDA, Director, Office of Civil Rights, Washington, D.C. 20250-9410