Low-interest home loans available
Section 504 low-interest home improvement loan and grant funds are currently available through the USDA Rural Development office in Alexandria. Loan funds can be used to make basic repairs, install essential features or remove health and safety h...
Section 504 low-interest home improvement loan and grant funds are currently available through the USDA Rural Development office in Alexandria. Loan funds can be used to make basic repairs, install essential features or remove health and safety hazards. Loans are made at 1 percent interest with a $20,000 maximum amount and amortized for a period of up to 20 years. Grants are available to households with at least one member who is 62 years of age or older, and the household must document a lack of available resources to remove and correct health and safety issues within the home. The maximum lifetime grant per household is $7,500. The home must be classified "modest" in value according to the county in which it is located, and household income limits do apply.
Applications are also being accepted for the Section 502 Direct loan purchase program. This program offers home loans with a note rate subsidized as low as 1 percent depending on household size and income. The home being purchased must be classified as "modest" and household income limits do apply. Applicants cannot currently own a home which is providing adequate housing, and must have acceptable credit.
For more information on either the 504 Loan/Grant program or the 502 Direct home purchase loan program, contact USDA Rural Development at (320) 763-3191 ext. 4. More information may also be found on the agency's Web site at www.rurdev.gov . The Alexandria office serves nine counties in west cntral Minnesota, they include Douglas, Grant, Otter Tail, Pope, Stevens, Todd, Traverse, Wadena and Wilkin.