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Loans, grants for low-income homeowners offered at USDA
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Posted on May 02 2005
Low-income homeowners who need to make some repairs in their homes can now avail of low interest loans or grants from the U.S. Department of Agriculture-Rural Development.
The USDA-RD said that loan and grant funds are now available under the 504 Loan and Grant program. The objective of this program is to help very low-income owner occupants of modest single family homes in rural areas make needed household repairs.
Loan funds are available for repairs to improve or modernize a home, make is safer or more sanitary, remove health and safety hazards or remodel dwelling to make them accessible to household members with disabilities.
Below are the qualification and consideration factors:
Adjusted household income limits as of March 3, 2005
1 person: 22,050; 2 persons: 25,200; 3 persons: 28,350; 4 persons: 31,500; 5 persons: 34,000; 6 persons: 36,550; 7 persons: 39,050; 8 persons: 41,600
Terms and conditions:
1. Maximum amount: $20,000 loan (Secured by real estate), $7,500.00 loan (Unsecured), $7,500.00 grant
2. Interest Rate: 1 percent fixed rate
3. Term: 20-years maximum
4. Purpose: Home repair/improvement only
Other eligibility requirements:
1. Must own at least 50-percent undivided interest in the property.
2. Subject property must be owner occupied.
3. Liquid assets must not exceed $7,500 for individuals below 62-years or age or $10,000.00 for individuals who are 62-years of age or older.
4. Lacks ability to obtain financial assistance from local financial institutions
Example of loan purposes:
1. Septic tank/waste disposal system;
2. Insulation;
3. Screen storm windows and doors;
4. Upgrade or improve electrical wiring;
5. Replacement of deteriorated roofs (including tin roofs);
6. Replacement of deteriorated siding;
7. Payment of incidental expenses such as title clearances, architectural and other technical services;
8. Additions to existing dwellings;
9. Repair or remodel houses to make accessible and usable for handicapped or disabled persons;
10. Repair and improve bathrooms.
Stop by the USDA Rural Development Saipan Office located on Beach Road for more details. (PR)
