BEMIDJI -- The U.S. Department of Agriculture is now offering funding available 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 that are unable to qualify for traditional financing. No down payment is required and the interest rate could be as low as one percent 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, a release said.
The maximum loan amount is $20,000 at a one percent 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.