DETROIT LAKES, Minn. – U.S. Department of Agriculture’s Rural Development department has funding available for very-low and low-income individuals and families who want to purchase or repair a home in a rural area.
USDA’s Direct Home Loan Program offers financing to qualified very-low and low-income applicants who are unable to qualify for traditional financing. No down payment is required and the interest rate could be as low as 1 percent, with a subsidy.
Applicants must meet income and credit guidelines and demonstrate repayment ability. Generally, rural areas with a population of fewer than 35,000 people are eligible. The maximum loan amount for repair is $20,000 at a 1 percent interest rate, repayable for up to 20 years.
Grants of up to $7,500 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 replacing a furnace.
For more information in the following Minnesota counties: Becker, Clay, Hubbard, Mahnomen and Norman, contact USDA Rural Development at 809 8th St. SE, Detroit Lakes, MN 56501 or 218-847-9392, extension 4. Information is also available at www.rd.usda.gov/mn.