United States Department of Agriculture (USDA) Rural
Development (RD) Office
Rural Housing
Service - Home Repair Loan and Grant Program
The Home Repair Program
provides funds to make a home accessible to someone with disabilities.
There are two loan programs and one grant program within this service:
1.
502
Direct Loan
The 502 Direct Loan
Program provides loans for purchase, construction, repair, improvement, or
modification of homes for low-income, rural residents. Loan money
comes directly from the USDA, not from a bank or other lender.
Properties financed must be modest, and located in rural areas of Maine.
Loans are available at 100% loan to value with no down payment
requirement, up to the loan limit for the county. Interest rates are
competitive, with subsidy available to those households that meet the
income qualifications.
Loans under this program may be
used for:
-
new construction, purchase
existing home, repair and modification;
-
new manufactured homes
purchased through approved dealer/contractors;
-
closing costs, when total loan
does not exceed 100% of market value;
- appraisal fee, tax
service fee and initial escrow deposit; and
- in certain circumstances,
refinancing of non-agency debt may be allowed.
Eligibility
Household income must be
at or below 80% of the median income for the area in which the property
you are purchasing is located. The loan office will determine this.
- You must have an
acceptable credit history;
- you are not able to
obtain the needed credit through conventional sources; and
- your principal, interest,
taxes and insurance ratio does not exceed 29% for very low income
households or 33% for low income households, and your total debt ratio
does not exceed 41%.
2.
504
Direct Loan and Grant Program
The 504 loan program provides assistance to very low income households to
make home improvements, repairs and modifications to improve
accessibility. Loans can be made for amounts up to $20,000. The interest
rate is 1% with a term not to exceed 20 years. Loans over $7,500 will
require a mortgage on the property.
Eligibility
-
Applicants must have a
household income that does not exceed 50% of the median income for the
county;
-
you must own your own land
and dwelling for which repairs are needed;
-
property must be a modest
dwelling;
-
you must have an acceptable
credit history; and
-
you are not able to obtain
funds from other sources.
The 504
Grant program provides assistance to elderly who live in very low income
households in removing health and safety hazards in their homes. Grants
can be approved for amounts up to $7,500 (life time limit).
Eligibility
- You
must have a household income that does not exceed 50% of the median
income for the county;
-
applicant or coapplicant must
be at least 62 years old;
-
you must own your own land
and dwelling for which repairs are needed;
-
property must be a modest
dwelling; and
- applicants must not be
able to obtain funds from other sources.
Contact
Information
United
States Department of Agriculture (USDA) Rural Housing Service, Home
Repair Loan and Grant Program
http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
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