Agriculture Secretary Tom Vilsack recently kicked off National Homeownership Month by highlighting USDA’s ongoing role to help people buy homes in rural areas.
USDA builds strong relationships with lenders, home builders, Realtors, community development organizations, non-profits and housing finance authorities to provide homeownership opportunities to very-low, low-and moderate-income individuals in rural areas. USDA’s Guaranteed Loan program, for instance, increases access to mortgage financing in rural communities by offering approved lenders a 90 percent loan guarantee to offset their risk if a borrower defaults. By partnering with approved public and private lenders, more than one million low-to moderate-in-come families have bought and refinanced homes in rural America through this program during the Obama Administration. The program requires no down payment from the applicant, offers a fixed interest rate and has a 30-year loan term.
The department recently announced a series of changes that will make it faster and cheaper for rural homeowners with USDA-backed mortgages to refinance their loans and save money with a lower interest rate. The changes took effect June 2. Interested homeowners with USDA loan guarantees should contact their lender about refinance procedures. Homeowners with mortgages through USDA’s Direct Loan program should contact a USDA housing specialist.
In addition to mortgage financing, USDA provides grants and loans to help rural homeowners make improvements or repairs, such as removing health and safety hazards or making accessibility modifications for people with disabilities. USDA has invested more than $137 billion since 2009 to support rural homeownership. In 2015 alone, the department invested $19.5 billion to help more than 148,500 rural families buy or make repairs and safety upgrades to their homes. Of this $19.5 billion, nearly $6 million was invested in Missouri. USDA created more homeownership opportunities through seven years of the Obama Administration than during any previous seven-year period in the single-family housing program’s history.
“We are privileged to the have the opportunity to make the dream of homeownership come true for many rural Missourians,” state director Janie Dunning said. “Having adequate housing is a fundamental need. Affordable, decent and safe housing availability is a necessity for the community and economic health of rural areas. This month we are celebrating the value of home-ownership and together, we are building better futures for families and individuals across rural Missouri.”
To learn more about USDA’s observance of National Homeownership Month, visit the agency’s Facebook page, call 417-967-2028, ext. 109, or email Melanie Stewart at melanie.stewart@mo.usda.gov.