Government programs through the Department of Rural Development provide assistance to low-income single homeowners for the purchase of homes or home repairs. There are several different programs used for different housing needs. The amount of assistance and terms differ by program and there are more restrictions on grants.
Definition
There are several government programs that provide assistance to single homeowners with low incomes to either purchase or repair and renovate their homes. These programs are through the Department of Rural Development in the United States Department of Agriculture. The purpose of these programs is to provide assistance to single individuals with housing needs that cannot obtain assistance through normal means.
Types
The Direct Loan Program (502) provides assistance to single individuals to get a low-interest rate on a home loan. The Loan Guarantee Program guarantees the loans made by other companies to low-income single individuals for homes. The Mutual Self-Help Housing Program requires single homeowners to build 65 percent of their home to get a lower rate and discounted price. The Home Repair Loan and Grant Program provides funds for low-income single individuals to repair or renovate their homes.
Uses
These loans and grants are used for individuals to either purchase a home or make repairs to their current home. The grants and loans for home repair are meant to allow single individuals to improve or modernize their home and also remove health and safety hazards. The home purchasing programs will normally only work for homes that are defined as modest and must be within the covered area.
Size
Under the Home Repair Loan and Grant Program, loans are given up to $20,000 and grants up to $7,500. The loans have a 1 percent interest rate. The Loan Guarantee Program also allows for financing of 100 percent of a home's cost. There is also not a down payment for the Mutual Self-Help Housing Program and, with assistance, the interest rate can be as low as 1 percent.
Restrictions
These programs can only be used for low-income single homeowners. The grants also have more restrictions than the loans, with a grant under the repair program only being given to someone older than 62 who cannot repay the loan. Grant funds may only be used for repairs that eliminate a health or safety hazard.
Tags: single individuals, low-income single, single homeowners, assistance single, provide assistance, assistance single individuals
