Recovery Act Provides Addtional Funding for USDA Rural Development Home Loans.

Recovery Act Provides Additional Funding for USDA Rural Development Home Loan Programs in 2010
Home buyers may also qualify for tax credits that are available through June 30

USDA Rural Development will have about $42 million available through its direct home loan program targeted at low-income residents throughout rural Minnesota in 2010. Qualified first-time and repeat home buyers may also be eligible for tax credits made possible by the Worker, Homeownership and Business Assistance Act of 2009.

Qualified first-time home buyers may be eligible for up to an $8,000 tax credit and repeat buyers may qualify for up to $6,500. Both programs are scheduled to expire on June 30, 2010.

Rural Development’s direct home loan program is intended to help very low and low income residents living in rural areas achieve home ownership. Applicants must be unable to obtain credit elsewhere and demonstrate repayment ability. A payment subsidy is also available to applicants to enhance repayment ability.

Rural Development also has a guaranteed home loan program intended for moderate income rural residents. The program does not have a down payment requirement and loans are made to homeowners by an approved lender.

For both the direct and guaranteed program, applicants may purchase a new home, existing home or build a new home.

Low-interest loans are also available for low-income residents to make home repairs. Grants are available to home owners over the age of 62 and must be used to remove health and safety hazards.

For more information, including income limits and ineligible areas, contact your local Rural Development office at 320-763-3191, ext. 4. For more information on both tax credits, visit http://www.federalhousingtaxcredit.com/home.html. For more information on Rural Development, visit www.rurdev.usda.gov/mn.