USDA offers loans to help people buy, repair homes
Direct Home Loan program offers financing to qualified very-low and low-income applicants who are unable to qualify for traditional financing.
WORTHINGTON — USDA Rural Development is accepting applications for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.
The Direct Home Loan program offers financing to qualified very-low and low-income applicants who are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as 1% with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability.
The program is available in rural communities of generally 35,000 people or less.
The maximum loan amount is $20,000 at a 1% interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace.
Contact Worthington’s USDA Rural Development Housing Specialist at 372-7783, ext. 4, for more information.