Funds Available for USDA Rural Development Loans

HOCMN April 27, 2015

Funds now available for USDA Rural Development Loans . Almost $10mm is available for first-time buyers as well as home improvement loans and grants.

USDA Rural Development offers loans for low-income households to purchase or build single family dwellings, as well as home improvement loans and grants for very-low income households who already own their homes in eligible rural areas throughout the state.

The Center has received word that funds are now available for USDA Rural Development Loans.

Section 502 Direct Home Loan Purchase Program Program Highlights

  • Loans up to 100% of market value
  • Interest rate is fixed for life of the loan
  • Monthly payments may be reduced with payment assistance for eligible applicants
  • Mortgage terms up to 38 years
  • Approved homebuyer education class required prior to closing

Eligibility Requirements

  • Do not currently own a house
  • Financed property must be owned as personal residence (cannot be purchased to lease)
  • Must have an adequate and dependable income
  • Adjusted family income cannot exceed 80% of median county income
  • Must be a U.S. citizen or non-citizen legally admitted for permanent residence
  • Must possess legal capacity to incur loan obligation
  • Must purchase in an eligible rural area
  • Must demonstrate positive credit history

Section 504 Home Repair Loans and Grants Program Highlights

  • Loans available up to $20,000 and grants up to $7,500
  • Loan interest rates are at 1% for up to 20 years
  • Real estate mortgage and full title services are required for loans of $7,500 or more
  • Grant funds are for home repairs and improvements to remove health and safety hazards
  • Grants may be recaptured if home is sold in less than 3 years after award
  • Maximum grant/loan combination up to $27,500

Eligibility Requirements

  • Homeowner must be unable to obtain affordable credit elsewhere
  • Very-low income defined as below 50 percent of the area median income
  • Grants available only to homeowners 62 years of age or older and unable to repay a loan
  • • Must live in an eligible rural area

Interested in learning more about USDA programs? Contact a homeownership advisor to see if a USDA program, or other affordable mortgage product, is right for you. To find your local homeownership advisor, click here.

 

Subscribe to our newsletter

Get occasional emails to help you stay up to date with the Minnesota housing market, new learning opportunities and more.