USDA receives $20 million more for loans
USDA Rural Development in Minnesota has received an additional $20 million in Recovery Act funds to help low and very-low income individuals and families achieve home ownership.
To qualify, applicants must purchase or build in a rural area, generally defined as a community with a population of 20,000 or less. Applicants also must be considered low or very-low income, meet income and credit standards and demonstrate repayment ability. Funds can be used to purchase an existing home or build a new one.
Interested applicants should contact the local office in Detroit Lakes immediately to take advantage of these funds. The Detroit Lakes office can be reached at (218) 847-9392, ext. 4. Potential applicants may e-mail Deborah.firstname.lastname@example.org for information.
The direct home loan program features 100 percent financing and low-interest rates. In August the interest rate is expected to be lowered to 4.5 percent. Monthly payments are based on household income and interest rates could be as low as one percent for borrowers who qualify for an interest rate subsidy.
The loans are delivered through Rural Development's direct home loan program. Minnesota has used over $35.4 million to help 301 rural families achieve home ownership this year through the program.
To learn more about the direct home loan program and other programs, visit www.rurdev.usda.gov/mn.