Funding available to help rural families buy homes

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 Alexandria immediately to take advantage of these funds.

The Alexandria office can be reached at (320) 763-3191.

Potential applicants may also e-mail allan.cowles@mn.usda.gov for more information.

The Alexandria office serves the nine-county area including Pope, Stevens, Douglas, Grant, Otter Tail, Wadena, Todd, Traverse and Wilkin

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 1 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 more than $35.4 million to help 301 rural families achieve home ownership this year through the program.

Recovery Act funds have financed 174 home loans for almost $21.2 million.

To learn more about the direct home loan program and other programs delivered by USDA Rural Development, visit www.rurdev.usda.gov/mn.

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