Severe storms and flooding have occurred this summer in a number of counties across Nebraska. A disaster declaration was previously issued in Nebraska for severe storms, tornadoes, straight-line winds and flooding in the following counties: Cass, Dundy, Gage, Jefferson, Lancaster, Lincoln, Morrill, Nuckolls, Otoe, Saline, Saunders and Thayer County. USDA Rural Development may be able to assist very low and low income home owners with needed repairs that are not covered by insurance.
For those who own and occupy homes in need of essential repairs, USDA Rural Development can help with grants and low-interest loans for homeowners in rural communities. Assistance is not just limited to the declared counties. All communities in Nebraska are eligible for housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha and South Sioux City/Dakota City.
Applicants must own and occupy the home and not exceed income guidelines established by county and household size. The family’s income must be below 50 percent of the county median income. For many counties in Nebraska, the income limit for a one person household is $21,350; two person, $24,400; three person, $27,450; four person, $30,500; and five person, $32,950. However, some counties may have higher income limits. Please contact your USDA Rural Development office for the details in your county.
Available Low-interest Loans:
Rural Development’s Home Repair Loan program offers to very low income rural homeowners, low-interest (1 percent) loans, up to $20,000, with a repayment term up to 20 years. Repair loans of less than $7,500 may not require a mortgage against the property. The low interest rate and extended terms of the loan make repayment more affordable for households with limited income. For example, a $10,000 loan at 1 percent interest for 20 years would have a monthly payment of $46, compared to a conventional loan with an interest rate of 5 percent for 10 years, with a monthly payment of $106.
Loans may be used to repair, improve or modernize homes or to remove health and safety hazards. Homeowners must meet household income guidelines, have an acceptable credit history and show repayment ability for the loan based on a household budget.
Available Grants:
Rural Development’s Home Repair Grant program is available to owner-occupants of a rural home, who are 62 years of age or older, are very low income and are unable to repay a loan. Grant funds may only be used to remove health and safety hazards, such as replacing a roof, electrical and plumbing repairs, sanitary disposal systems and accommodations to make the home handicap accessible. Maximum lifetime grant assistance is $7,500.
Eligibility for the program is based on household income and applicants must be unable to repay a loan. If applicants can repay part, but not all of the costs, applicants may be offered a loan and grant combination.
Helping people stay in their home and keep it in good repair helps families and their communities. Households interested in affordable home improvements may contact their local USDA Rural Development office in Nebraska or visit http://www.rd.usda.gov/programs-services/single-family-housing-repair-loans-grants/ne for additional information.