June 9, 2009 - GAINESBORO,
Lily Thomason and her two children were living with her
mother when she heard from a friend about the low-interest home loans available
from USDA Rural Development. She contacted the agency's Area Office in
"I thought living with my Mom was the only thing I could
do for a while," said Thomason. "Now that we're here and my children have their
own rooms in our own home, I know living with my Mom was just temporary. What I
needed to do was find someone who could work with me to get in this
house."
Happy she found a comfortable home in a good
neighborhood near her Mom, Thomason is settling in as a
homeowner.
Now that the Thomason family is putting down roots of
their own, RD staff joined them to celebrate Homeownership Month by planting a
tree in their front yard to remind them what they have
accomplished.
"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 own home; just like the Thomasons."
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 Barack 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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