It has just came to my attention that the USDA has a rural housing service for people whom have an income lower than the 80% mark of average in their communities. The loan can be 100% at an interest rate of 1% if you qualify. Locate the info with USDA RHS into google search, find section 502. If your on a pension or fixed income, this could be your ticket. There are other programs for updateing property, even building new in this same program.

-- mitch hearn (moopups@citlink.net), February 07, 2002

Answers

I looked at this program about a month ago. There are also grants available for those who are at least 62 and have low income. The only thing you have to double check is that they use your depreciation as income so most farms, ranches don't qualify. Bummer deal especially for us. Anyway, the other thing is that you can only get up to $20,000.00 per lifetime...at least in Oregon. So if you are thinking of building a new home...it may not work. The application was very simple and I completed it in a few hours. They do want at least 2 years copies of back taxes and you have to be able to verify your income. Anyway, it is definately a great way to go if you qualify and we were sure hoping we would. However, USDA FSA (Farm Service Agency) does have 100% loans as well...and low interest rates too. Good luck!

Krista

-- Krista Dennis (krista@nacsdc.org), February 07, 2002.

So you did look in to it. Hope my "article" helped before, in your earlier post. I am also considering the USDA loan/ grants.

-- yep. (me@nottelling.com), February 07, 2002.

We just took advantage of the 1% interest remodeling program last year. We have been very happy. We were able to completely redo our kitchen, remodel one bathroom and add a second bathroom. The best part is in doing so we later determined that we could then take in a elderly person and I became an individual provider and that provides me with $1,800 worth of income from my home. It has been a win-win for he and our family. Since being in our home and eating homemade food, puttering around outside in the garden, throwing the chickens scratch and sitting by the woodstove, he has given up his cane and the Dr. has cut his heart medication in 1/2. And guess what loan with be paid off pronto!

-- Marie in Central WA (Mamafila@aol.com), February 07, 2002.

Can someone tell me a little more about this? I've been looking thru the webpage, but not sure I understand.

If you already have found a place in your county, will they give you a loan for it? Or is there only a certain dollar amount that they go up to?

Would a bankruptcy 7 years ago (but good credit since) put you right out of consideration?

-- Tracy (zebella@mindspring.com), February 07, 2002.

Tracy: They do also finance home loans, but have never done this. A friend of ours did and I believe they borrowed $120,000, but the interest rate was higher, although lower than conventional loans. Good credit does matter, but I don't know how far back they go. Give them a call and have them send you an information packet. The 1% interest rate is only for improvement loans, I believe. Marie

-- Marie in Central WA (Mamafila@aol.com), February 07, 2002.

I spent this afternoon at the rural development offic on this subject. The USDA rural housing service will direct loan to people with low income; low income being all income to the household equalling less than 80% of average for their area and family size. Very low income, income less that 50% of the average is where the interest rate can sink to 1% and the amount to 100% financed. An area, averaging about 4 counties, can be different rates of average. I am in Hampshire County of WV, an area with little industry, mostly agricultural endevors, the average amount here is $19.700.00.

The USDA will not allow commercial operation at the site secured with the loan in that would be sponsoring more compition for the farmers, so the Farm Service Agency handles simular programs for agricultural loans; I have their material but have not reviewed it yet. The USDA requires proof of an ability to pay; credit in descent shape, no "toe stubbings" in the last three years, and proof of good rent habits; there is no top age limit. These are "starter loans" that are reviewed every 2 or 3 years to moniter your income changes. Their hopes are that you gain enough income that you can get refinanced through a regular finical institution to free up their alloted monies to help others.

While no livestock can be kept on site, it is alloweable to have a garden but only for your own use, not to sell. Some crafts/hobbies type things can be produced at the site as long as the sales of same is off site. The above is a guildline; I may have not understood all things correctly, contact your rural development agency for further info.

-- mitch hearn (moopups@citlink.net), February 07, 2002.