Purchasing a home can be exciting, challenging and costly.
USDA Rural Development assists low and very low income individuals and families obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance, which reduces the monthly mortgage payment and increases an applicant’s repayment ability. The amount of assistance is determined by the adjusted family income.
Income limits vary by county. Applicants must have an adjusted income that is at or below the limit for the county in which they want to purchase a home. For example, income limits that qualify as “low” for St. Louis County are:
1-4 person(s) household: $57,900.
5-8 people household: $76,450.
Down payments are not typically required, and loans can be repaid over 33 to 38 years with an interest rate as low as 1 percent.
“This program provides a path to homeownership for families living in rural areas who are unable to obtain financing anywhere else,” said USDA Housing Program Director Stephanie Vergin. “Increasing the home ownership rate in rural areas can help promote prosperity, which in turn creates thriving communities and improves the quality of life.”
Rural Development has three staffed offices within the Iron Range Resources & Rehabilitation service area. Contact the office serving your county and ask about the “Single Family Housing Direct Home Loan” program.
Virginia office: 218-741-3929 ext. 4 (serves St. Louis, Lake and Cook counties).
Baxter office: 218-829-5965 ext. 4 (serves Aitkin and Crow Wing counties).
Bemidji office: 218-751-1942 ext. 4 (serves Itasca county).
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