How to Get a Rural Housing Repair Loan
What it is
| At a Glance | |
|---|---|
| Loan Type: | Housing |
| Lender: | Government |
| Secured: | Yes |
A rural housing repair loan is granted through the United States Department of Agriculture. Money is available to dwelling owners or occupants. Funds may only be used for repairs or improvements to remove health and safety hazards or to complete repairs to make the dwelling accessible for household members with disabilities. The amount of the loan is based upon the applicant's ability to repay and may be used in conjunction with the Repair and Rehabilitation grants.
Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 10 years at a one percent interest rate. A real estate mortgage is required for loans of $2,500 or more. Full title services are required for loans of $7,500 or more. Grants may be recaptured if the property is sold in less than three years. Grant funds may be used only to pay for repairs and improvements resulting in the removal of health and safety hazards. A grant/loan combination is made if the applicant can repay part of the cost. Loans and grants can be combined for up to $27,500 in assistance.
Who it's for
In order to be eligible, applicants must be unable to obtain affordable credit elsewhere and must have very low incomes, defined as below 50 percent of the area's median income. The applicants must need to make repairs and improvements to make the dwelling safer and more sanitary or to remove health and safety hazards. The grant program is only available to homeowners who are 62 years old or older and cannot repay a loan.
What you need to do to apply
In order to obtain a rural housing repair loan, applicants should contact the USDA for more information and application processes. Once an application has been submitted, a decision on the application will be made between 30 to 60 days if no backlog exists.
Apply for a Rural Housing Repair Loan
Apply online for any type of housing loan at LoanWeb: