The United States Department of Agriculture – USDA – put forward a wide variety of loan options for current homeowners, as well as people looking to borrow funds to purchase their own homes in rural areas.
One aspect of this program is to provide loans to repair, renovate, and rebuild homes that are located in various rural areas across the nation. This program is the USDA Home Rural Repair and Rehabilitation Loan and Grants. Another program is the USDA Rural Development Home Purchase Program. Learn the benefits of a USDA loan.
Features of the USDA Home Rural Repair and Rehabilitation Improvement Loan and Grant Program
$20,000 is the maximum available loan.
Grants of up to $7,500 which can be recaptured if the property is sold in less than 3 years from getting the grant. Grant money may be used only to pay for repairs and improvements resulting in the removal of health and safety hazards.
The loan is offered at a 1% interest rate for a 20-year term.
A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance.
The Rural Housing Repair and Rehabilitation Loans are for families who live in rural areas and receive a very low income.
To be eligible for the program a family’s income must be under 50% of the median for the surrounding area.
If you are applying for a loan from this program for a house then you must own and reside in the home. If you move to another location during the renovation process then you must plan to move back into the home as the primary resident once the rehabilitation of the home is complete.
These loans are given directly by the United States government. This is not a guaranteed loan from a separate lender, but rather an actual government loan.
The loan may only be used to improve and/or repair a home, or to remove any health hazards from the home.
If you live in a rural area of the United States and are in need of making some improvements or even a complete renovation of your residence then you could be eligible for the Rural Housing and Rehabilitation Loan. Contact the USDA for further inquiry into this program as well as many other loan opportunities.
If you are interested in the looking into the USDA Rural Development Home Loan Program, please complete the form below.