The U.S. Department of Agriculture (USDA) Rural Development has financing available for home loans to rural North Dakota residents. The Single Family Housing Direct Loan program offers 100 percent financing with no down payment and recently the interest rate was lowered to 3 percent.
“By offering favorable rate and terms, this program is making home ownership affordable for many North Dakotans and their families,” said Ryan Taylor, USDA Rural Development State Director. “Owning a home is a basic building block, helping individuals and families become financially secure and stable.”
Since the creation of USDA’s single-family housing programs in 1949, USDA has helped more than 3 million rural residents across the county obtain the American dream of homeownership. Since 2009, USDA Rural Development has directly financed 300 homes in North Dakota.
The program primarily aims at helping less-than-moderate income borrowers seeking to purchase modestly priced homes. Qualification for a USDA home loan is based on household income and eligible properties must be located in an area with a population of 35,000 or less. A borrower may use the loan to purchase an existing dwelling or for new home construction. The loan can be made for over a period of 30 to 38 years at a reasonable interest rate, which is currently 3 percent. Payment assistance is also available to help make buying a home more affordable.
For further information on USDA Rural Development’s Direct Home Loan program or for a free pre-qualification, call USDA Rural Development at (701) 530-2037 or visit http://www.rd.usda.gov/nd.
Listed below are additional USDA Rural Development programs that support rural homeownership:
• Home loan guarantees: USDA partners with private sector lenders to back a loan for moderate-income homebuyers.
• Home repair loans and grants: Used to help rural homeowners make improvements or repairs, which may include removing health and safety hazards or making homes accessible for people with disabilities.