A USDA official announced today that funds are available to help rural residents of New York buy or repair single family homes.
“Expanding and preserving homeownership is a major part of the foundation for a stronger, more prosperous rural New York,” said Scott Collins, USDA Rural Development New York Acting State Director. “There is tremendous potential for New York and these funds will contribute towards building safe communities that people can call home.”
Funding is available through two Rural Development housing programs; the Home Repair program and the Guaranteed and Direct Loan program. The Guaranteed Loan program assists lenders extend mortgages with affordable terms to low and moderate income homebuyers. Rural Development guarantees the loan, thereby reducing the lender’s risk and enabling them to provide financing at more favorable rates and terms to families wishing to purchase a home. Guaranteed loans can be made on either a new or existing home for up to one-hundred percent of the appraised value.
Under the Direct loan program, applicants apply directly to USDA for loan assistance. No down payment is required and applicants may be eligible for payment assistance, which subsidizes the interest portion of the mortgage, lowering the overall monthly payment.
The Home Repair program offers very-low income homeowners loans and grants to make general home repairs or modifications, which may improve or modernize a home. The interest rate on these loans is one percent and the maximum term is 20 years. Applicants may obtain multiple loans, with a maximum outstanding loan amount at a given time of $20,000. Grants are available to very-low income homeowners age 62 or older who cannot afford a loan. Grants are limited to a lifetime assistance of $7,500 and must be used to remove health and safety hazards or make a home more handicap accessible.
These programs have been very successful by providing decent, safe, and sanitary housing in rural New York. For more information on these programs and how to apply, please contact our Greenwich office at (518) 692-9940 Ext. 4 or visit click here to find out more about USDA’s housing programs.
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.