Housing Funding Available Through USDA

  • Friday, April 24, 2015

USDA Rural Development Chattanooga Area Office Director David Collett reminds residents of Grundy, Marion, Bledsoe, Sequatchie, Hamilton, Rhea, Meigs, McMinn, Bradley, and Polk counties that funding is available for all Rural Development Housing Programs.  

There are still opportunities to attend a Housing Fair hosted by the Chattanooga Area Office to help interested parties learn more about the program. 

Date

Time

Location

Address

May 6, 2015

1:00 pm CT

Tracy City

City Hall

50 Main St.

(Hwy 41)

Tracy City, TN

May 12, 2015

10:00 am ET

Ducktown City Hall

340 Main St.

Ducktown, TN

May 12, 2015

2:00 pm ET

Polk County Courthouse, 3rdFloor

Hwy 411

Benton, TN

May 20, 2015

10:00 am ET

Volunteer Energy Cooperative Service Center

18359 Hwy. 58 North

Decatur, TN

May 20, 2015

1:00 pm ET

Volunteer Energy Cooperative Service Center

425 Wassom Memorial Hwy.

Spring City, TN

 

Through the USDA Rural Development Single Family Housing Direct Loan program, applicants may obtain 100 percent financing to purchase a home.  The current interest rate is 3 percent which is on a fixed 33-year term.  Some buyers may qualify for payment assistance that may reduce the effective interest rate to as low as one percent – thus reducing the monthly payment.   Often, the monthly payment is lower for a homeowner than the amount that they may be paying for rent. 

The purpose of the loan is to provide financing at reasonable rates and terms with no down payment.  Eligible applicants may purchase an existing dwelling, purchase a site and construct a dwelling, or purchase a newly constructed dwelling.  Eligibility criteria for this program must be met and includes such requirements as meeting the income guidelines, have good credit history, be a U.S. citizen and have repayment ability for the home that they wish to purchase.  

“Many in our rural communities are unaware that USDA Rural Development is also able to assist those individuals who already own their homes with needed home repairs,” said Mr. Collett.   The Home Repair program is a loan program with a one percent annual interest rate designed to help the owner remove health and safety hazards and to make essential repairs.  Most repairs completed under the program are for roof, siding, window and door replacement, electrical repairs, furnace and air conditioning replacement and other repairs needed to keep the home livable.  To qualify for the program, applicants must own and occupy the home and have an income within Rural Development guidelines.  The program application paperwork is relatively simple for applicants with no initial cost involved.  

USDA Rural Development is moving investments to rural America with housing, business and infrastructure loans and grants to create jobs and strengthen rural economies with an emphasis to assist areas of persistent poverty.  Since 2009, the agency has assisted more than 1.5 million Tennessee families and businesses in 230 communities in all 95 counties of Tennessee, investing more than $5.4 Billion through affordable loans, loan guarantees and grants. 

For more information on USDA Rural Development programs available in Southeast Tennessee contact the Chattanooga Area Office at 423-756-2239, or 800-342-3149 x 1492. Visit online at www.rd.usda.gov/TN.           

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