USDARural Development housing programs work toimprove the quality of life for rural Americans by ensur-ing that they have access to safe, well-built, affordablehomes. Ahouse is more than a roof over our heads; itis often the foundation upon which rests our ability tolive near good jobs and to gain access to goodschools and other public services.Homeownership builds economic stability and, over the long term, creates equity to finance education,business startups and retirement. USDAthus not onlyhelps rural people acquire homes, it helps build better lives and communities.The direct and indirect impacts of housing develop-ment and rehabilitation reverberate throughout theNation. Residential construction and rehabilitationstimulate various manufacturing and trade industriesand related professional services. Housing activity alsobenefits the larger economy as wages are earned andspent by those directly involved in housing develop-ment.
Homeownership Loans
Rural Development's housing programs finance newor improved housing for low- to moderate-income fam-ilies and individuals who wish to live in rural areas or rural cities and towns. The purpose is to providefinancing with no downpayment and at favorable ratesand terms. These loans are for the purchase, con-struction, rehabilitation, or relocation of a dwelling andrelated facilities.Two types of homeownership loans are offered: guar-anteed and direct loans. Under the direct loan pro-gram, individuals or families receive a loan directlyfrom USDA. Payments are based on income, and youmust be unable to obtain a homeownership loan froma bank or other conventional sources.Guaranteed loans are available to qualifying applicantswhose income is too high to qualify for a direct housingloan. These are loans made by other lenders, such asbanks or credit unions, and are guaranteed by RuralDevelopment.
Self-Help Housing
Many rural families have achieved the American dreamof owning their own homes through USDA's MutualSelf-Help Housing program.Self-Help Housing loans help groups of 6 to 10 low-income families build their own homes by providingmaterials and the skilled labor they cannot furnishthemselves. The families must agree to work together until all homes are finished.Self-Help works in combination with a grant program tononprofit organizations and the direct single familylending program, although other home financingsources can be used. The nonprofits help families buildtheir houses by providing technical assistance.
Rural Rental Housing Loans
Apartment living is often an alternative for people whocannot afford the purchase price and maintenancecosts of their own individual house. Rural RentalHousing loans are made to finance building construc-tion and site development of multi-family living quartersfor people with low, very low, and moderate incomes.Some units are reserved for people aged 62 and over.Loans can be made in this program to construct hous-ing that will be operated in cooperative form, but loanfunds may not be used to finance individual units withinthe project.
Housing Programs
Rural Housing andCommunity Programs
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