Anderson County family celebrates new home

 

June 1, 2009-POWELL, Tenn. — Sarah York thought the trailer where she was raising her four children was the best she could do. That was before she heard about USDA Rural Development (RD) homeownership programs.

 

Working with RD staff, York completed a Homebuyer Education Class and learned more about what to expect with homeownership. York and her family moved out of the trailer they had been renting and into their first home earlier this month.

 

"This has been the best experience ever," said York. "The trailer was too small, but I never thought we could own our own home. Now my kids have room inside and out and a house they can be proud to call home."

 

Happy that she found a home in a good neighborhood near her work and family, York is settling in to her new life as a homeowner.

 

To celebrate June as Homeownership Month, Rural Development staff in Knoxville held a drawing for a $50 Lowe's Home Improvement Gift Card earlier this week. All of the homebuyers they have had since October 1, 2008 were eligible.

 

"I couldn't believe it when I found out I won," said York. "First, Rural Development was able to make home buying affordable and now this. These people really care about what they do."

 

Knoxville Rural Development Area Office staff Charles Morris, Linda Whillock and Sharon Brogan delivered the prize to the York family on Wednesday.

 

"It's a great thing when we can help a family qualify for financing on a home that meets their needs," said Rural Development Area Director Jerry Amonett. "Affordable home loans are available to a lot of families and individuals in rural areas."

 

Eligibility for assistance is based on family income and varies by county. For example, a four person household living in Anderson and Knox Counties with an adjusted household income up to $47,050 may qualify for a low-interest home loan through Rural Development. Rural Development staff will help applicants calculate their adjusted family income and complete the application process.

 

Rural Development home-loans may be made without a down payment and eligible applicants may qualify for loan financing up to 102 percent of the appraised value. Depending on an applicant’s income, monthly payments may be based on an interest rate as low as one percent.  Loans are typically made for 33 years at a fixed interest rate, with a maximum loan amount of $150,600 in Anderson and Knox Counties.

 

"With all that’s happening in the housing market right now, finding the right home loan for your family and circumstances can be a frightening prospect," said Amonett. "Fortunately our Rural Development staff has a lot of experience helping people achieve—and maintain—the American Dream of owning their home; just like the Yorks."

 

Rural Development also works with private lenders to increase the number of affordable home loans they make in rural areas by providing a federal guarantee on mortgages for families and individuals with moderate household incomes. Loan-guarantees are also available to private lenders that finance the construction, acquisition or rehabilitation of affordable multi-family rental housing in rural areas. For more information on loan guarantees contact the area office at the number below.

 

In addition, Rural Development makes home-repair loans to alleviate unsafe conditions, make repairs or to add needed space. The interest rate on these loans is one-percent and payments may be spread over as much as 20 years to keep the monthly payments affordable. In some cases grants are available for elderly or disabled homeowners who need to correct health and safety deficiencies, improve accessibility or alleviate overcrowding.

 

USDA Rural Development invests in rural communities through homeownership, community and business development programs. Last year Rural Development assisted more than 678,000 Tennessee families and businesses with more than $435 million in financial assistance through loans, loan guarantees and grants.

 

For more information on Rural Development programs available in Anderson and Knox Counties contact the Rural Development Area Office in Knoxville 865-523-3338 ext. 4, toll free at (800) 342-3149 ext. 1491 or online at www.rurdev.usda.gov/tn.