USDA Rural Development State Director Colleen Landkamer today continued USDA’s celebration of National Homeownership Month by recognizing several rural homeowners 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.
For example, through a unique partnership with Douglas County Habitat for Humanity, USDA was able to help Kristi Laughnan achieve homeownership at a rate that was affordable for her through the Single Family Housing Direct Loan program.
Douglas County Habitat (DCH) provided financing for the closing costs, which when repaid, with then be used to continue to build more houses throughout Douglas County. DCH began their partnership with USDA about five years ago when Habitat was averaging approximately two, new-construction homes a year. Since then, Habitat has doubled that number to now averaging about four new-construction homes per year.
“The partnership with USDA allows Habitat for Humanity to extend our reach into the community and help even more low-income families realize the dream of homeownership.” Douglas County Habitat for Humanity Executive Director Lori Anderson said.
Landkamer recognized several homeowners who achieved homeownership through USDA’s Single Family Housing Direct Home Loan program, including Laughnan. Jean Schuster, a retired Pastor now working part-time, was able to purchase a modest home in the rural community of Bertha. Matt Solin was refereed to USDA by the Freedom Resource Center for Independent Living, a service to increase independence of people with disabilities, and was able to find an affordable home in the Fergus Falls area. In the rural community of Carlos just outside of Alexandria, Laura Vasquez and Larry Scott were able to re-finance their home, including completing renovations to their basement – reducing their monthly mortgage payment.
Through USDA’s Single Family Housing Repair Loan and Grant program, Patricia Pederson received financing to replace the siding and windows to her home that was originally built in 1948. She was also able to renovate her bathrooms to be more accessible, now fifteen years retired. She utilized the program again a few years later to replace the shingles on her roof.
Each of these homeowners were awarded with USDA’s 2016 Homeowner of the Year award in a small celebration hosted by Landkamer where she highlighted the importance of affordable homeownership and home repair opportunities in rural communities. Landkamer also discussed the importance that partnerships have in making these achievements a possibility and recognized Douglas County Habitat with USDA’s 2016 Outstanding Housing Partner award for helping USDA bring affordable housing to rural individuals and families in northwestern Minnesota.
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.
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.
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.