Benton Development Group hosted a housing meeting with the USDA Rural Development on Wednesday, October 8, 2014. The USDA Rural Development works to deliver quality programs that will increase economic opportunity and improve the quality of life for Iowans living in rural communities.
The agency’s direct and guaranteed rural credit programs help families find affordable housing, assist businesses to create economic opportunities, and allow communities to build or improve essential infrastructure and facilities.
Presenters from the USDA included: Shannon Chase, Housing Program Director from the State office; Doug Moss, Area Director; and Mike Boyle, Area Specialist from the Tipton office. Individuals in attendance were able to express their needs and concerns about housing in Benton County and the presenters were able to talk about available programs based on the responses. Programs heavily discussed were: Direct Home Loans for buyers, Guarantee Home Loans for buyers, and Home Improvement and Repair Loans and Grants.
Direct Home Loans
This loan is intended to assist low and very low income families in rural Iowa to achieve their dream of homeownership. Applicants must have acceptable credit history and have repayment ability for loan requested. Eligible households with incomes not exceeding 80% of median household income apply for the loan. They also cannot own decent, safe and sanitary housing. Individuals can loan up to 100% with no down payment required. The loan can be used to: purchase new or existing homes, purchase a site to construct a home, refinance existing mortgages.
Guarantee Home Loans
This program provides loans to assist moderate-income families in rural communities obtain homeownership. Loan guarantees are carried out through private lenders and may be used to purchased new or existing homes. Similar to direct loans, this is a 30-year mortgage with no down payment required. This program differs in the fact that there are no restrictions on size or dwelling of the home. Applicants eligible for this loans must not have household incomes exceeding 115% of the median income for the area.
Home Improvement and Repair Loans and Grants
This programs is used to provide loans and grant to very low-income homeowners to repair, improve, or modernize their dwelling or to remove health and safety hazards. To be eligible for the grant program, individuals must be 62 or older. To be
eligible for the loan program, homeowner household income must fall below 50% of the area median income. These loans are up to a 20 year term at a 1% interest rate. Applicants can apply for up to $20,000 loan or $7500 grant.
If you have any questions about these programs or any other programs offered by the USDA Rural Development, please call the Benton Development Group for more information.
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