USDA accepting applications to help low-income individuals and families buy or repair homes
No down payment is required, and the interest rate could be as low as 1% with a subsidy.
BAXTER — The U.S. Department of Agriculture 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 that 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 $40,000 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 $10,000 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.
For further information or questions, contact the Baxter Rural Development Office at 7118 Clearwater Road, Baxter, MN, 56501; or by calling 218-829-5965, ext. 110.