Rural Development funds available to low-income families for home repairs

Special to the Daily Mail

A 504 loan and grant program is available through USDA Rural Development to assist homeowners with repairs to their dwellings.

The USDA Rural Development has funding available to help very-low income homeowners in rural areas finance improvements to homes they own and occupy.

Examples of how this program may be used include: hookup to city sewer or water; insulation, storm windows and doors; furnace replacement; electrical wiring; roof replacement; leveling and replacement of sub-flooring; replacement of severely deteriorated siding.

Other possible uses are handicapped accessibility issues such as ramps and widening doorways; lowering counters, sinks and handrail in bathrooms; and lever handles on doors and sinks.

To qualify for the 504 grant, the owner or applicant must be very low income and at least 62 years of age and own the property. The improvements made must be to remove a health and safety hazard. The applicant must be unable to afford the loan payment for the improvement. Grant funds received are forgivable after three years, as long as the applicant remains in the home.

Very-low income homeowners, of any age, who need to fix up their home, may be eligible for 1 percent financing under the 504 Loan program from USDA Rural Development. Home improvement loans are available to very low income homeowners to remove health or safety hazards and do other necessary improvements. To qualify for the loan, the household must be very low income, have acceptable credit history, and have repayment ability for the loan. Loans can be made with the repayment amortized for up to 20 years.

The very-low income guidelines for Vernon County are one person, $15,950; two people, $18,200; three people, $20,500; four people, $22,750; and five people, $24,550.

Security and terms of loans

Loans will be secured by Deed of Trust. Loan terms are not to exceed 20 years at 1 percent interest.

For example, the payment on a $2,000 loan at 1 percent for 20 years would amount to $7.67 monthly.

For further information on these and other programs offered by USDA Rural Development contact Carol Platt or Robin Kuhns at the Butler Rural Development Local office at: 625 W. Nursery, Box A, Butler, MO 64730 or call (660) 679-6114, ext. 4.