Snow Hill, MD March 30, 2006 – USDA Rural Development State Director Marlene Elliott announced the availability of homeownership funds to rural residents. For more than seven decades, USDA Rural Development has been helping to improve the quality of life and increase economic opportunity for all rural Americans. Last year, the agency helped over 400 individuals and families become homeowners in rural Maryland.

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

USDA Rural Development 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 Drew Clendaniel, 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 5-3/4% 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.

USDA Rural Development is committed to the future of rural communities. The agency has invested over $63 billion nationwide since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Rural residents living in Worcester, Somerset and Wicomico Counties interested in Rural Development’s housing programs should call the USDA Service Center located in Snow Hill at (410) 632-0616, ext. 4. You can visit USDA Rural Development’s website at www.rurdev.usda.gov. TTY users in Maryland and Delaware should call 302-857-3585.

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