Housing funds now available for FY 2006

It has long been acknowledged that home ownership strengthens rural communities and contributes to the overall quality of life for rural families.

The USDA Rural Development's Rural Housing program works with community organizations, lenders and residents to increase the opportunity for rural home ownership. Since USDA Rural Development is able to make loans with no down payment to those who are unable to qualify for a conventional loan, this program enables many more individuals and families to purchase their first home. Funding for these programs has just been received for FY 2006 and the local offices are hoping to utilize every dollar that they have received.

The USDA has a long history in providing housing in rural America, with more than $90 billion invested to assist over 3 million families for the past 50 years.

"The federal government offers opportunities to families whose income is below the median household level to acquire suitable housing at affordable prices," said Mike Field, State Director. "We want to make sure that we bring these families together with the programs that will make their dream of home ownership a possibility. We hope every family in Idaho will have the opportunity to have a home to call their own," he said.

USDA's Section 502 Guaranteed Rural Housing Loans (GRH) is one of the programs available. Under the program, USDA provides loan guarantees on single-family home mortgages. GRH loans are made and serviced by more than 115 lenders throughout Idaho. The individual works with the private lender and makes his or her payments to that lender. Mortgages are 30-year fixed rate at market interest rates. Guaranteed housing loans can be made for either new or existing homes and the borrower may borrow up to 100 percent of the appraised value of the home, which eliminates the need for a down payment.

The direct loan program offers direct financial assistance at an affordable interest rate. Most of the loans under the direct loan program are to families with incomes below 80 percent of the median income level for the communities where they live and the interest rate can be adjusted according to income. These loans are processed by the local USDA Rural Development office.

Self-help housing loans help groups of 6 to 10 individuals or families build their own homes by providing materials and the skilled labor they cannot furnish themselves. The families agree to work together until all homes are finished. Self-help works in combination with a grant program to nonprofit organizations and the direct single-family lending program, although other home financing sources can be used. Through the Self-Help Housing Program, rural individuals and families can build "sweat equity" by helping construct their own homes. The nonprofits assist the families and provide skilled labor and technical assistance.

Whether it is a loan guarantee through local banks and mortgage companies, direct loans to individuals or grants and technical support to housing developers, USDA Rural Development is working to help create clean, safe, affordable housing in rural areas. By contacting a USDA Rural Development Office, rural people interested in the American dream of owning their homes can apply for these programs to help them make a down payment, apply for a direct loan or find other financing.

USDA Rural Development's staff will assist people with the application process and give them the requirements needed to determine their eligibility. Those who are interested in owning their own home in rural Idaho, contact USDA Rural Development at (208) 378-5600 or visit the website at www.rurdev.usda.gov/id/rhs.htm.