USDA Offers Home Repair & Improvments for Seniors

IRONWOOD, MI - Monday, May 26, 2008 - USDA Rural Development is an agency committed to providing affordable housing in Rural Communities. Eligible applicants can get financing (or grants) for an existing home that needs repair. Loan funds are available for repairs to improve or modernize a home, make it safer or more sanitary, or remove health and safety hazards. For homeowners age 62 and over who cannot repay a loan, grant funds are available to remove health or safety hazards.

Home Repair Loan and Grant Program

For very low income families who own homes in need of repair, the Home Repair Loan and Grant Program offers loans and grants for renovation. The Home Repair Program also provides funds to make a home accessible to someone with disabilities.

Money may be provided, for example, to repair a leaking roof; to replace a wood stove with central heating; to construct a front-door ramp for someone using a wheelchair; or to replace an outhouse and pump with running water, a bathroom, and a waste disposal system.

Homeowners 62 years and older are eligible for home improvement grants. Other low income families and individuals receive loans at a 1% interest rate directly from USDA RD.

Single Family Home Repair Loans and Grants

Objective
To help very-low income applicants remove health and safety hazards or repair their homes.

Applicant
Families and individuals who currently own their home apply to Rural Development.

Uses
Loan and grand purposes include:  winterizing, purchase or repair of heating system, structural repair, water/sewage connect fees and similar uses.

Population
Rural areas and populations of 10,000 or less.

Loan/Grant
Direct loan and grant

Terms/Conditions
Terms to 20 years at 1 percent.  Assistance to individual may not exceed $20,000. Grants available to applicants 62 years or older with limited income. Maximum grant is $7500.

All USDA loans/grants have certain eligibility requirements that must be met. Some of these requirements are listed below:

1.  Must meet the income limits based on the family size and the area. For Gogebic County the following limits apply: Family of 1 = $17,900; Family of 2 = $20,500; Family of 3 = $23,050; Family of 4 = $25,600; Family of 5 = $27,650; Family of 6 = $29,700; and Family of 7 = $31,750.

2. Must demonstrate repayment ability and sufficient credit history. (Housing Repair Loans Only)

3. Must be a U.S. citizen or legally admitted alien.

4. Must personally occupy the dwelling and possess the legal capacity to incur the loan or grant.

5. Either the applicant or the co-applicant must be at least 62 years of age and unable to repay a loan to receive a grant.

For more information on this, and other USDA Rural Development programs, contact: James Jackson, Rural Development Specialist; 208 West Lead Street; Bessemer, MI 49911; Phone - (906) 663-6852; Fax - (906) 663-6852; Email - jim.jackson@mi.usda.gov.

To read about other USDA Rural Development programs, visit www.rurdev.usda.gov/mi.