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USDA Rural Development Can Assist with Home Ownership, Improvements

Name
Tammi Schone
City
Huron
Release Date

How is your house holding up against the weather?  Need a roof or a new air conditioner to keep you cool?  How about your windows or flooring?

USDA Rural Development has money available for the 504 Home Repair Loan program for rural residents of South Dakota. These loans can be made for up to $20,000 with a repayment term to 20 years at one percent interest rate.

This Loan program is available to very low income rural homeowners who need repairs or improvements to their home but cannot afford them on their own. Very low income is defined as household income no more than $24,750 - $32,650 for two people. The limits vary by county and household size.

Common repairs are window replacement, insulation, roof replacement/repair, new hot water heater/plumbing, heating and air conditioning repair or replacement, handicap accessibility and general home improvements. Other eligible purposes include plumbing improvements, septic systems, wells, public utility connection fees, and modifications to make a home accessible.

Grants of up to $7,500 may be available to those 62 or older who cannot meet their home repair needs with loan funds. The grant funds can only be used to remove health or safety hazards.

Need a home of your own?
The USDA Rural Development 502 Direct Home Loan Program now is accepting applications. This is a 100 percent mortgage program that can include most closing costs and necessary repairs. The loan can be used to buy an existing home or to build new. The program is designed to give low income families the opportunity to become homeowners. As with the 504 Home Repair Loan Program, income limits vary by county and family size. The limits for a four person household range from $49,450 - $65,300.

The current interest rate is 3.25 percent as of August 1, 2015 and can be subsidized by Rural Development to as little as one percent for 33 years.

Income too high?
USDA Rural Development provides loan guarantees to lenders for mortgage loans that require no down payment and no private mortgage insurance. The Guaranteed Rural Housing Loan Program is similar to the 502 Direct Home Loan Program, but has higher income limits. A one to four-person household may qualify if their income does not exceed $75,650 - $93,850.  Income limits vary by county.

USDA Rural Development’s Rural Housing Programs offer a broad range of homeownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The Rural Housing Program area of USDA Rural Development has the ultimate goal of providing affordable homeownership opportunities to South Dakota residents.

For guaranteed rural housing loans, contact an approved lender (Most mortgage lenders in South Dakota are approved) or contact Guaranteed Rural Housing Specialist Kenneth Lynch, ken.lynch@sd.usda.gov, or (605) 226-3360, Ext. 4 for more information.

For further information on the direct programs, please contact one of the following Housing Specialists:

Aberdeen Area Office - Roxanne Woodring, roxanne.woodring@sd.usda.gov, or 605-226-3360, Ext. 4, servicing Beadle, Brown, Campbell, Day, Edmunds, Faulk, Marshall, McPherson, Roberts, Spink, and Walworth.

Mitchell Area Office - April Norton, april.norton@sd.usda.gov, or 605-996-1564, Ext. 4, servicing Aurora, Bon Homme, Charles Mix, Clay, Davison, Douglas, Hanson, Hutchinson, Jerauld, McCook, Sanborn, Turner, Union, and Yankton.

Pierre Area Office - Paula Corcoran, paula.corcoran@sd.usda.gov, or 605-224-8870, Ext. 4, serving Brule, Buffalo, Corson, Dewey, Gregory, Hand, Hughes, Hyde, Jones, Lyman, Mellette, Potter, Stanley, Sully, Todd, Tripp,  and Ziebach.

Rapid City Area Office - Ruth O’Neill, ruth.oneill@sd.usda.gov, or 605-342-0301, Ext. 4, serving Bennett, Butte, Custer, Fall River, Haakon, Harding, Jackson, Lawrence, Meade, Pennington, Perkins and Shannon.

Watertown Area Office - Diane Byer, diane.byer@sd.usda.gov, or 605-886-8202, Ext. 4, serving Brookings, Clark, Codington, Deuel, Grant, Hamlin, Lake, Lincoln, Kingsbury, Miner, Minnehaha, and Moody. 

USDA Rural Development in South Dakota has offices in Aberdeen, Huron, Mitchell, Pierre, Rapid City, Sioux Falls, Watertown, and Yankton.  For more information, visit the USDA Rural Development Website at http://www.rd.usda.gov/sd.

The Administration’s plan for rural America has brought about historic investment and resulted in stronger rural communities. These investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.