Cumberland County resident celebrates
Homeownership Month
June 5, 2009 - CROSSVILLE,
Slagle financed her home with an affordable mortgage
from USDA Rural Development several years ago. She knew the staff in the
agency's Cookeville Area Office could point her in the right direction to help
get financing to repair her heating unit. She worked with them to qualify for a
home improvement loan on terms that would fit her budget and the repairs were
completed by the beginning of February.
"To lose heat in the winter is a nightmare" said Slagle.
"I wasn't sure what I was going to do, but the people at Rural Development
really helped me out of a tough spot."
The staff from the
"It's a great thing when we can help a family qualify
for financing on home repairs that meet a critical need like this," said Rural
Development Area Director Joe Woody. "Helping people keep their homes in good
working order is an important part of our mission."
Rural Development home-repair loans are designed to
alleviate unsafe conditions, make repairs or add needed space, as with
Slagle. 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.
Rural Development also makes home-loans. These 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
Eligibility for assistance is based on family income and
varies by county. For example, a four person household living in
"With all that’s happening in the housing market right
now, finding the right home loan or home repair 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, or repairing it; just like the
Ms. Slagle."
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.
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 http://www.whitehouse.gov/briefing_room/PresidentialActions/
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