All the people seated in the room have the same dream or goal, to own their own home. Together they’ve taken the wise first step and are attending a Home Buyers Education and Counseling class sponsored by Human Resource Development Council (HRDC) in Bozeman.
“We recommend that all homebuyers attend a Home Buyers Education and Counseling class, regardless of their financial situation,” said Tom Atkins, Housing Program Director, USDA Rural Development Montana. “The information provided to prospective home buyers, especially first time buyers, is invaluable.”
The classes are free, if completed, and cover assessing readiness to buy, budgeting and credit, financing a home, selecting a home, and maintaining a home and finances. They are taught by local real estate agents, mortgage brokers, bankers, and representatives from federal, state and non-profit agencies, like HRDC, that have programs to assist home buyers. To be eligible for some programs the class is required.
USDA Rural Development takes part in the Home Buyer Education and Counseling classes in Montana to explain the programs and assistance Rural Development’s Rural Housing Service can offer.
The potential home buyers learned about the direct loan and guaranteed loan programs offered by the Rural Housing Service.
The direct loan program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an eligible applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
The guaranteed loan program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.
This year, as of July 31st, Montana Rural Development has provided 28 direct loans for $3.8 million and 796 guaranteed loans for $137.7 million.
To find the next Home Buyers Education and Counseling class go online or call 1-866-587-2244. For more information on USDA Rural Development’s Rural Housing Service programs in Montana visit the home page or call 406-585-2515.