Spring has sprung and that brings thoughts of planting flowers and mowing the lawn. If you are thinking of purchasing your own house (and garden, too), USDA Rural Development has over $2 million available in Direct Home Loan Program funds to help rural residents in South Dakota become homeowners. All funds must be obligated by September 30, 2016.
Direct Single Family Housing Loans are available at 100 percent financing with no down payment directly through USDA Rural Development for a period of 30-38 years, and at a reasonable interest rate, currently 3 percent. Qualification for a Rural Direct Home Loan is also based on the household’s income. A portion of the interest payment on the loan may be subsidized by the Federal Government, making purchasing a home more affordable for families and individuals who live, or want to live, in rural South Dakota. USDA Rural Development Rural Direct Home Loans may be made for the purchase of an existing home or new home construction.
Home repair loans available for low-income households - USDA Rural Development has money available for the 504 Direct Home Repair Loan program for rural residents of South Dakota. These loans can be made for up to $20,000 with a repayment term to 20 years at one percent interest rate.
This Loan program is available to very low income rural homeowners who need repairs or improvements to their home but cannot afford them on their own. Very low income is defined as household income no more than $24,750 - $32,650 for two people. The limits vary by county and household size.
Common repairs are window replacement, insulation, roof replacement/repair, new hot water heater/plumbing, heating and air conditioning repair or replacement, handicap accessibility and general home improvements. Other eligible purposes include plumbing improvements, septic systems, wells, public utility connection fees, and modifications to make a home accessible.
Grants of up to $7,500 may be available to those 62 or older who cannot meet their home repair needs with loan funds. The grant funds can only be used to remove health or safety hazards.
Income too high - USDA Rural Development provides loan guarantees to lenders for mortgage loans that require no down payment and no private mortgage insurance. The Guaranteed Rural Housing Loan Program is similar to the 502 Direct Home Loan Program, but has higher income limits. A one to four-person household may qualify if their income does not exceed $75,650 - $93,850. Income limits vary by county.
USDA Rural Development’s Rural Housing Programs offer a broad range of homeownership assistance available to individuals and families who wish to or currently live in rural areas, cities, and communities. The Rural Housing Program area of USDA Rural Development has the ultimate goal of providing affordable homeownership opportunities to South Dakota residents.
For guaranteed rural housing loans, contact an approved lender (Most mortgage lenders in South Dakota are approved) or contact Guaranteed Rural Housing Specialist Kenneth Lynch, ken.lynch@sd.usda.gov, or (605) 226-3360, Ext. 4 for more information.
For further information on the direct programs, please contact one of the following Housing Specialists:
Aberdeen Area Office - Roxanne Woodring, roxanne.woodring@sd.usda.gov, or 605-226-3360, Ext. 4, servicing Beadle, Brown, Campbell, Day, Edmunds, Faulk, Marshall, McPherson, Roberts, Spink, and Walworth.
Mitchell Area Office - April Norton, april.norton@sd.usda.gov, or 605-996-1564, Ext. 4, servicing Aurora, Bon Homme, Charles Mix, Clay, Davison, Douglas, Hanson, Hutchinson, Jerauld, McCook, Sanborn, Turner, Union, and Yankton.
Pierre Area Office – Grady Olson, grady.olson@sd.usda.gov, or 605-224-8870, Ext. 4, serving Brule, Buffalo, Corson, Dewey, Gregory, Hand, Hughes, Hyde, Jones, Lyman, Mellette, Potter, Stanley, Sully, Todd, Tripp, and Ziebach.
Rapid City Area Office – Lance Lockwood, lance.lockwood@sd.usda.gov, or 605-342-0301, Ext. 4, serving Bennett, Butte, Custer, Fall River, Haakon, Harding, Jackson, Lawrence, Meade, Pennington, Perkins and Shannon.
Watertown Area Office - Diane Byer, diane.byer@sd.usda.gov, or 605-886-8202, Ext. 4, serving Brookings, Clark, Codington, Deuel, Grant, Hamlin, Lake, Lincoln, Kingsbury, Miner, Minnehaha, and Moody.
USDA Rural Development in South Dakota has offices in Aberdeen, Huron, Mitchell, Pierre, Rapid City, Sioux Falls, Watertown, and Yankton. For more information, visit the USDA Rural Development Website at http://www.rd.usda.gov/sd.
President Obama's historic investments in rural America have made our rural communities stronger. Under his 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.