One Percent Home Repair Loans Available through USDA

Name
Vicki Schurman
City
Lincoln
State
Nebraska
Release Date
Apr 03, 2014
For those who own and occupy homes in need of essential repairs and who are wondering how to get financing, USDA Rural Development can help with low-interest loans to assist very low income rural residents. Rural areas include communities with a population of 20,000 or less. Norfolk and Columbus are also currently eligible through the 2020 census. Funds can be used to repair or replace furnaces, electrical, foundations, siding, roofing, windows, plumbing, wells, septic systems, and other health and safety hazards as well as improving and modernizing a home or making a home accessible for disabled household members. Eligibility for the program is based on household income and applicants must have acceptable credit and repayment ability, and be unable to afford a conventional loan. The USDA repair loan may be made up to $20,000 at a 1% interest rate, with a repayment term up to 20 years. 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% interest for 20 years would have a monthly payment of $46, compared to a conventional loan with an interest rate of 5% for 10 years, with a monthly payment of $106. The applicant must own and occupy the home and not exceed income guidelines established by county and household size. For many counties in Nebraska, the income limit for a one person household is $20,950; two person, $23,950; three person, $26,950; four person, $29,900 and five person, $32,300. However, some counties may have different income limits. Please contact your USDA Rural Development office for the details in your county. Maxine Moul, Nebraska State Director for Rural Development, said, "USDA Rural Development’s mission is to improve the quality of life in rural communities. Our agency has adequate loan funds available under the home repair program and I encourage families to use this program to improve their homes.” Households interested in the home repair program may contact their local USDA Rural Development office or visit the Agency website at www.rurdev.usda.gov/ne for additional information. President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, 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.