These loans and grants help rural, low-income individuals and families buy or repair homes

Loans and grants from the U.S. Dept. of Agriculture's Rural Development office can help low-income citizens buy or repair homes in rural North Carolina.

"Our mortgage loan programs are life-savers for so many rural residents who have been unable to purchase their own homes," says USDA state director Randall Gore.

The current interest rate is 3.75 percent and may be reduced to 1 percent for qualifying households.

Rural Development has six area offices and 14 field offices across the state. Area offices are in Asheville, Shelby, Lumberton, Asheboro, Henderson and Kinston. Visit an office or learn more at rurdev.usda.gov/nc.

502 Single-Family Home Ownership Loans

Primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to acquire, build (including purchasing and preparing sites and to provide water and sewage facilities), repair, renovate or relocate a home.

• Applicants must be unable to obtain a loan from other sources on terms and conditions that can reasonably be expected to be met.
• You must have sufficient income to pay house payments, insurance and taxes, and necessary living expenses.
• You must possess legal capacity to incur the loan.
• You must meet the basic eligibility requirements and have an acceptable credit history.
• Eligible rural areas have less than 20,000 population.
• Loans may be made for up to 100 percent of the appraised value.
• Repayment period is 33 years and, under certain conditions, 38 years.
• Repayment period for manufactured homes is 30 years.

504 Single-Family Home Repair Loans and Grants

Loans and grants to very low-income homeowners to repair, improve or modernize their dwellings or to remove health and safety hazards.

• Grants limited to $7,500 are available to dwelling owner/occupants age 62 or older. Applicants must own their own home.
• Very low-income homeowners can receive up to $20,000 in loans and grants.
• Eligible rural areas have less than 20,000 population.
• The interest rate on the loan is 1 percent with up to 20 years to repay.

502 Single-Family Home Ownership Guaranteed Loans

The Guaranteed Rural Housing program bridges the gap between government and private mortgage lending. Loans are originated, underwritten and serviced by USDA-approved lenders.

• You apply through the mortgage lender who then submits a request for guarantee to USDA Rural Development.
• You must have adequate and dependable income and be a U.S. citizen or permanent resident.
• Buyers must occupy the dwelling.
• Your adjusted annual income may not exceed the limit for the county in which you apply.
• Credit history must indicate a reasonable willingness to meet obligations and ability to repay debts.
• Loans are for new or existing homes in eligible rural areas.
• Property must be structurally sound, functionally adequate, and in good repair.
• Interest rate is negotiated between lender and applicant with 30 years to repay.
• 100 percent financing plus the guarantee fee.
• Closing costs and repairs can be included up to the appraised value.