DAYTON, Tn. — Sleeping in a camper can be fun when you are enjoying the great outdoors. When that camper becomes a permanent home however, the joy can quickly slip between cramped spaces and lack of storage for food. Rodney Newby understands firsthand the challenges of living in a home on wheels fulltime.

"I love to cook, and not having the space to do it gets real old, real fast," said Mr. Newby. "You don't know how nice it is to have ice cream in your freezer whenever you want it.

My last freezer could barely hold an ice cube tray."

After he began working with USDA Rural Development staff in the Chattanooga Area Office he discovered he could qualify for an affordable home loan and move out of his camper and into a home built on a firm foundation.

Mr. Newby is settled in as a homeowner, RD staff celebrated Homeownership Month by presenting him with a basket of kitchen items, including an ice cream scoop and toppings for the ice cream.

"It's a great thing when we can help someone qualify for financing on a home that meets their needs," said Rural Development Area Director Rickey Hickman.

Eligibility for assistance is based on family income and varies by county. For example, a four person household living in Rhea County with an adjusted household income up to $37,050 may qualify for a low-interest home loan through Rural Development. Rural Development staff will help applicants calculate their adjusted family income and complete the application process.

Rural Development home-loans may be made without a down payment and eligible applicants may qualify for loan financing up to 100 percent of the appraised value. Depending on an applicant’s income, monthly payments may be based on an interest rate as low as one percent. Loans are typically made for 33 years at a fixed interest rate, with a maximum loan amount of $146,000 in Rhea County.

"With all that’s happening in the housing market right now, finding the right home loan for your family and circumstances can be a frightening prospect," said Mr. Hickman. "Fortunately our Rural Development staff has a lot of experience helping people achieve—and maintain—the American Dream of owning their home; just like Mr. Newby."

Rural Development also works with private lenders to increase the number of affordable home loans they make in rural areas by providing a federal guarantee on mortgages for families and individuals with moderate household incomes. Loan-guarantees are also available to private lenders that finance the construction, acquisition or rehabilitation of affordable multi-family rental housing in rural areas. For more information on loan guarantees contact the area office at the number below.

In addition, Rural Development makes home-repair loans to alleviate unsafe conditions, make repairs or add needed space. The interest rate on these loans is one-percent and payments may be spread over as much as 20 years to keep the monthly payments affordable. In some cases grants are available for elderly homeowners who need to correct health and safety deficiencies, improve accessibility or alleviate overcrowding.

USDA Rural Development invests in rural communities through homeownership, community and business development programs. Last year Rural Development assisted more than 678,000 Tennessee families and businesses with more than $435 million in financial assistance through affordable loans, loan guarantees and grants.

For more information on Rural Development programs available in Southeast Tennessee contact the Rural Development Area Office in Chattanooga 423-756-2239, toll free at (800) 342-3149 ext. 1492 or online at www.rurdev.usda.gov/tn.

President Barak Obama has declared June National Homeownership Month. To see the President's proclamation, log on to http://www.whitehouse.gov/briefing_room/PresidentialActions/