Rural home loans available
January 16, 2008
Federal Government Funding Available For Home Loans in Rural New Mexico
Albuquerque, NM, January 14, 2008 – USDA Rural Development State Director Ryan Gleason reminded rural New Mexicans that the agency he leads has financing for the Single Family Housing Guaranteed Loan Program (GRH) and other housing programs.
In making the announcement, Gleason said, “While Rural Development has continued to work on single family housing loans throughout the fall and winter months, the cyclical nature of the federal funding process means we’ve been doing it with smaller amounts of money. With President Bush’s signing of the 2008 funding bills, we are back at full strength and hopeful that we’ll have the opportunity to assist many rural New Mexicans achieve that part of the American Dream known as homeownership.”
Through the GRH program, a mortgage lender makes a home loan and Rural Development co-signs the note on behalf of the federal government. Because the federal government is guaranteeing the loan, borrowers are much less likely to need a down payment or private mortgage insurance.
The program is designed to assist middle-income families who want to buy a home in rural New Mexico. The amount of money loaned is determined by how much the borrower can afford to repay. The number of dependents and the amount of money earned by the buyer are also factored into the loan package.
In addition, under USDA Rural Development’s Direct Loan Program, low income individuals or families receive direct financial assistance from Rural Development in the form of a home loan at an affordable interest rate. Most of the loans made under the Direct Loan Program are to families with income below 80% of the median income level in the communities where they live who would not otherwise qualify for a conventional loan. Direct loans may be made for the purchase of an existing home or for new home construction. Gleason further announced that financing is available for the refurbishing of homes under the 504 Direct and Grant programs. Approved renovations include roofing, electrical, plumbing and/or for handicapped accessible modifications.
Moreover, a homeowner who is 62 years old or more can also receive a once-in-a-lifetime grant of $7,500 to offset the cost of construction. Under the 504 loan program a person can borrow up to $20,000 at one percent interest.
For more information on any of these programs contact your local Rural Development office or call the State Office at 505-761-4950. USDA Rural Development's mission is to increase economic opportunity and improve the quality of life in rural communities.
Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.