United States Department of Agriculture Rural Development has funding available for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.

USDA’s direct home loan program offers financing to qualified very-low and low-income applicants that are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as one percent with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. Generally, rural areas with a population less than 35,000 are eligible.

The maximum loan amount for repair is $20,000 at a one percent interest rate, repayable for up to 20 years. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing or replacing a furnace.

Contact a USDA Rural Development employee in your area to see if you qualify.

For more information on single-family housing in Blue Earth, Dakota, Dodge, Faribault, Fillmore, Freeborn, Goodhue, Houston, Le Sueur, Mower, Olmsted, Rice, Scott, Steele, Wabasha, Waseca and Winona counties, contact USDA Rural Development at 1408 21st Ave. NW, Suite 3, Austin, MN 55912; call 507-437-8247, extension 4; or visit USDA’s website at www.rd.usda.gov/mn.