Rural Development Loans Available from USDA – Bemidji Pioneer

USDA Rural Development accepts applications from very low- and low-income individuals and families who want to buy 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 $40,000 at 1% interest, repayable over 20 years and can be used to improve or modernize homes and make essential repairs.

Grants of up to $10,000 are available to homeowners 62 and older and must be used to eliminate health or safety risks, such as repairing a leaky roof, installing indoor plumbing or replacing of a furnace.

Time is limited to receive funds for the current fiscal year. Interested individuals can contact a USDA Rural Development Housing Specialist to see if they are eligible at (218) 751-1942 ext 4.

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. For more information, visit

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