USDA Rural Development State Director Colleen Landkamer today continued USDA’s celebration of National Homeownership Month by recognizing Midwest Minnesota Community Development Corporation (MMCDC) with USDA’s 2016 Outstanding Housing Partner award and highlighting the importance of affordable housing and home repair opportunities in rural areas.
“Providing safe, affordable homes in rural areas is essential to the growth and continued development of rural communities,” Landkamer said. “Each year, USDA celebrates National Homeownership Month by recognizing the individuals and families who have achieved homeownership, and the various partnerships of the many organizations that have worked with us to continue to make rural housing affordable.”
USDA builds strong relationships with lenders, home builders, realtors, community development organizations, non-profits and housing finance authorities to provide homeownership opportunities to very-low, low- and moderate-income individuals in rural areas.
Through a unique partnership with MMCDC, USDA is able to provide affordable housing opportunities through both the 502 Single Family Housing Guaranteed Loan program and the 502 Direct Loan program. MMCDC is a top ten lender originating loans for guarantee by USDA and also refers lower income applicants to USDA for the 502 Direct program.
The Single Family Housing Direct Loan program helps applicants, like those recognized today, achieve homeownership at an affordable rate through payment assistance. Payment assistance increases an applicant’s repayment ability through determination by the adjusted family income.
USDA’s Guaranteed Loan program increases access to mortgage financing in rural communities by offering approved lenders a 90 percent loan guarantee to offset their risk if a borrower defaults. By partnering with approved public and private lenders, more than one million low- to moderate-income families have bought and refinanced homes in rural America through this program during the Obama Administration. The program requires no down payment from the applicant, offers a fixed interest rate, and has a 30-year loan term.
The Department recently announced a series of changes that will make it faster and more affordable for rural homeowners with USDA-backed mortgages to refinance their loans and save money with a lower interest rate. The changes took effect June 2. Interested homeowners with USDA loan guarantees should contact their lender about refinance procedures. Homeowners with mortgages through USDA’s Direct Loan program should contact a USDA housing specialist.
Since 2009, USDA has invested $4.2 billion to support rural homeownership throughout Minnesota. In 2015 alone, USDA invested nearly $537 million to help over 4,100 rural individuals and families buy and maintain homes.
In addition to mortgage financing, USDA provides grants and loans to help rural homeowners make improvements or repairs, such as removing health and safety hazards or making accessibility modifications for people with disabilities.
USDA employees will celebrate National Homeownership Month throughout June with events across the nation that demonstrate the commitment to provide access to affordable housing for low- and moderate-income rural residents. To learn more about USDA’s observance of National Homeownership Month, please visit our Facebook page or contact our State Office in St. Paul at 651-602-7786.