USDA Rural Development still has more than $6 million in funding available for low and very low income homebuyers in rural areas across Vermont through the Single Family Housing Direct Loan program. These funds must be spent by September 30, 2010.
The program, which has been in existence since 1935, offers direct loans for the purchase or construction of homes in designated rural areas. It received a boost last year with an injection of almost $1 billion in American Recovery and Reinvestment Act funding aimed to mitigate the effects of the recession on the housing industry.
The goal of the program is to make homeownership possible for people who otherwise might not qualify by offering 100 percent financing and no down payment. The low interest loans are made directly through USDA Rural Development and a portion of the interest payment on the loan may be subsidized by the Federal Government, based on household income. Last year 96 Vermont families became homeowners through the program.
Our mission at USDA Rural Development is to help first time home buyers who don t have a lot of money in the bank to be successful after they close their loan, said Robert McDonald, Housing Program Director. Buying a home is a huge decision, especially in these times and a key element for getting a loan is to attend an eight hour home buyers education class or completion of an approved on-line course. We believe an informed customer is a successful customer.
President Obama signed The American Recovery and Reinvestment Act of 2009 into law on Feb. 17, 2009. It is designed to jumpstart the nation's economy, create or save millions of jobs and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act includes measures to modernize our nation's infrastructure, enhance energy independence, expand educational opportunities, preserve and improve affordable health care, provide tax relief, and protect those in greatest need.
For more information about USDA Rural Development s Single Family Housing Program in Vermont contact the Montpelier office at 802-828-6012 or visit http://www.rurdev.usda.gov/vt, and for information about USDA's Recovery Act efforts visit www.usda.gov/recovery. More information about the Federal government's efforts on the Recovery Act is available at www.recovery.gov.
USDA Rural Development administers and manages more than 40 housing, business, and community infrastructure and facilities programs. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. To learn more about USDA Rural Development programs visit the web site at http://www.rurdev.usda.gov/vt.
Source: VT USDA. Montpelier, VT, May 10, 2010