McCormick was renting a small home in McMinnville when
she began noticing ads for low-interest home loans from USDA. She contacted the
USDA Rural Development Area Office in
"I thought where we were renting was the best I could
do," said McCormick. "Boy was I wrong. All of my kids have their own bedroom
now, and we don't all have to share a bathroom
anymore."
Happy she found a comfortable home in a good
neighborhood McCormick is settling in as a
homeowner.
As the family starts putting down roots of their own, RD
staff recently joined the McCormicks to celebrate Homeownership Month with a
tree planting ceremony in their front yard.
"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 Joe Woody.
Eligibility for assistance is based on family income and
varies by county. For example, a four person household living in
Rural Development home-loans may be made
without a down payment and eligible applicants may qualify for loan financing up
to 100 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 $136,000 in
"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 Woody. "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 McCormicks."
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 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 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
For more information on Rural Development programs
available in
President Barak Obama has declared June National
Homeownership Month. To see the President's proclamation, log on to www.rurdev.usda.gov/tn/housing.htm
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