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Rural Home Loans Single Family Home Loans Senior Grants - Part 1 of a 2-part series -
July 6, 2018

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NOTE: This article is the first part of a two part series on loans and grants available in Pierce County. The next article will appear in the July 14th edition of The Pierce County Tribune.

Jill Haakenson from the USDA in Devils Lake attended the JDA session last week and shared some information that the Rugby community may be interested in. This information could be of financial assistance to those over 62 years of age, and those in certain income brackets (not necessarily low income) that could provide for rural housing remodel assistance loans or a possible maximum $7500 rural housing grant.

Rural housing grants do not have to be paid back. Loans that are available are at a low interest rate of 1 percent with a payback of over 20 years. In order to apply for these loans, an applicant must first make sure that the address is eligible for the loan guarantees program. This in formation may be found at the website for property eligibility found at eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

This Website will ask you to choose your program, select Single Family Housing Direct or Single Family Housing Guaranteed. It will also require the mailing address of the property. The website will return the information if your property is eligible.

The Single Family Home Guaranteed Loan Program is a program which provides low and moderate income households the opportunity to own a home of safe housing as a primary residence, in eligible rural areas. Rugby is one of those areas according to the website. The program provides a 90 percent loan note from approved lenders to eligible rural home buyers. Those lenders can approve up to 100 percent of the cost of the home, plus any associated fees. That is decided on a case by case basis.

Applicants for the Single Family Home loan must meet income eligibility requirements. They must agree to occupy the dwelling as their primary residence for the next three years, and be a US Citizen, non-citizen national or Qualified Alien and have the legal capacity to incur the loan obligation. You may not have been suspended or debarred from participation in any federal programs. You must demonstrate the willingness to meet credit obligations in a timely manner, and purchase a property that meets all the program criteria.

Funds backed by the loan guarantee may be used for new or existing residential property to be used as a permanent residence. Closing cost and reasonable fees may be included. A site may be a new or existing dwelling. Repairs and rehabilitation when associated with the purchase on an existing dwelling can be financed also. Refinancing of eligible loans can be done. Accommodations for a household member who has a physical disability are also included. Also included are connections fees, assessments for water, sewer, electricity and gas for which the buyer is liable.

Included in the loan can be a pro rated share of the real estate taxes that is due and payable on the property at the time of closing. All household fixtures that is conveyed with the dwelling is included also (as well as energy efficient measures such as double-paned glass and solar panels).

Site preparation will also be included in any loan, such as driveways, seeding or sod installation, trees and fences.

For Pierce County, documentation on Rural Housing Loan adjusted income limits were 1-4 person households, $41,450 and 5-8 person household, $54,750.

Applicants must contact an approved lender. In Rugby, the USDA site lists Bremer Bank, and Ramsey National Bank. Other banks may also participate. Information about contacting an approved lender may be obtained by contacting Haakenson, 706 8th Ave. SE, Suite 5 Devils Lake, ND 58301-3749. Toll Free: ( 800) 688-2279, Ext. 4. Voice: (701) 662-8634, Ext. 4.

Part 2 will include information on Grants and 502 Loans, and income limits.

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