June 12 - 2009 - ALAMO,
Connie Johnson is just such a parent. She has taken on
extra work to provide for her children, Mallory and Colin, and still makes sure
they have the attention and care they need. As the utility bills in the home she
was renting continued to increase, Johnson took the advice of family and friends
and found a more energy efficient home she could call her
own.
Johnson was aware of the homeownership programs offered
by USDA Rural Development (RD). She contacted the Area Office in
"I had been paying rent on my previous home for seven
years and everyone told me I should buy a place of my own. When I was ready, I
knew Rural Development could help me," Johnson said. "Now Mallory and Colin have
the room they need to grow and a place they can call
home."
Happy she found a comfortable home in a good
neighborhood Johnson is settling in as a homeowner.
To celebrate their move from rental to investment, RD
staff recently brought them a welcome mat to remind them of the accomplishment
every time they come through the door.
"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 Bobby Goode.
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 $131,000 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 Goode. "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 Johnsons."
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.
USDA Rural Development invests in rural communities
through business development, community and homeownership programs. Last year
Rural Development assisted more than 678,000
For more information on Rural Development programs
available in the
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