Rural development loans available for low income people – Bemidji Pioneer

BEMIDJI – USDA Rural Development is accepting applications from very low-income and low-income individuals and families seeking to purchase or repair a home in a rural area.

The Direct Home Lending Program provides financing to qualified very low- and low-income applicants who cannot qualify for traditional financing, according to a release.

No down payment is required and the interest rate can be as low as 1% with a grant. Applicants must meet income and credit guidelines and demonstrate repayment capacity. The program is offered in rural communities generally of 35,000 people or less.

The maximum loan amount is $20,000 at 1% interest, repayable over 20 years and can be used to improve or modernize homes and make essential repairs.

Grants of up to $7,500 are available to homeowners 62 and older and must be used to eliminate health or safety risks, such as repairing a leaky roof, installing interior plumbing or replacing of a furnace.

Time is limited to receive funds for the current fiscal year. USDA Rural Development Loans and Grants provide assistance that supports infrastructure improvements; Business development; lodging; community services such as schools, public safety and health care; and high-speed Internet access in rural areas.

To see if you qualify, contact a USDA Rural Development Housing Specialist. For more information, visit www.rd.usda.gov/mn or call the Bemidji office at (218) 751-1942, ext. 4.

About Keneth T. Graves

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