United States Department of Agriculture (USDA) Rural Development has funding available 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 replace a furnace.
Time is limited to receive funds. Contact a USDA Rural Development Housing Specialist to see if you qualify. The nearest office in the Steele-Waseca Cooperative Electric service area is located at 1810 30th Street NW, Suite 3, Faribault, MN 55021. The phone number is: 507-332-7418 ext. 4.