Direct loan program (Section 502)-- affordable interest rate
- most loans are made at 80% of the median income level in the community where they live.
- can be made to those who will not qualify for a conventional loan, enabling many more people to qualify than might not otherwise.
- loan is guaranteed-individual or family may be able to borrow up to 100% of the appraised value of the home, which eliminates the need of a down payment.
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Mutual Self Help Program (Section 523)- For very low and low income (must prove) Very low is 50% of the area median income while low is 50-80% of the AMI.
- Must be without adequate housing
- Must be able to afford mortgage (payments are 22-26% of the applicants income)
- Enables future homeowner to work on homes themselves allowing them to pay less for the home. (Homeowner must complete 65% if the work to build his or her own.)
- Loans up to 33 years (or 38 years if income is below 60% of the area median.)
- House must be modest in size, cost and design.
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Home Repair Loan and Grant- - for very low income families whose homes are in need of repair. Also, provides funds to make home more accessible to someone with disabilities. (Ex: repair a leaky roof, replace a wood stove with central heat, construct a ramp for one with a wheelchair or replace outhouse and pump with running water, a bathroom and a waste disposal system.)
- Homeowners 62 and older are eligible for home improvement grants; other low income families and individuals receive loans at a 1% interest rate directly from HCFP. __________________________________________________ __________________________________________________ __________
Example of income limits (based on 2 people as of 03/18/08) for
Tulsa Hud Metro- Very low income $21,900; Low income 35,000. (
Payne County- very low income $20,400; Low income $32,650)
http://www.rurdev.usda.gov/rhs/sfh/DSFH_Income_Limits/OK%20Direct.pdf
For more information on the Rural Development program:
http://www.rurdev.usda.gov/rhs/sfh/i...ram%20(Section
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Rural Development loans help people get into homes
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