Maria and Ignacio Gordillo of Reedley, Calif., helped build their house last year through USDA’s Mutual Self-Help Housing Loan Program. More than 50,000 rural families have become homeowners using their “sweat equity” as a down payment on an affordable USDA mortgage.
More than 50,000 rural families have become homeowners using their “sweat equity” as their down payment on an affordable USDA mortgage.
What is “sweat equity?” These families have helped build their own homes and provided most of the construction labor with guidance from a qualified construction supervisor through USDA’s Mutual Self-Help Housing Loan Program. The “sweat equity” — the savings in labor costs — reduced the amount of the home loan and made the monthly payments affordable.
June is National Homeownership Month. USDA is celebrating the self-help program and the 50,000+ rural families who have invested in a home of their own through self-help housing. Read more »
L to R: Vernon Brown, USDA Community Program Director in Kentucky; RHS Administrator Hernandez; and Thomas Fern, USDA Rural Development State Director for Kentucky.
Recently, I visited southeastern Kentucky, where I joined Rural Development State Director Tom Fern on a whirlwind tour to parts of an eight-county region designated by President Obama as a rural Promise Zone and by Secretary Vilsack as part of USDA’s StrikeForce initiative covering 73 Kentucky counties.
During my first stop, I joined Congressman Hal Rogers as he announced a $23 million loan (funded by USDA’s Community Facilities program) to purchase the property and facilities of the Knox County Hospital in Barbourville. That loan was the first one to come across my desk last December shortly after I joined USDA. Meeting with some of the 200-plus dedicated employees of that hospital affirmed my belief that granting that loan was the right decision, as the funding will enable those healthcare workers to continue to serve the families of the region. Read more »
State Director Terry Brunner presents an award to Mireya Cisneros as her parents and her younger brother look on.
The Sixth Street Elementary School in Silver City, New Mexico, has seen a lot of students over the years. But May 8th 2014 was a very special day at the 130-year-old school. Why? Because 10-year-old Mireya Cisneros, a fourth grader, was honored for her winning illustration for New Mexico’s 2014 National Homeownership Month poster contest.
The theme, “What my home means to me!” was the inspiration for the fourth and fifth grade students who participated in the contest held by USDA Rural Development in New Mexico. Read more »
USDA Ohio Rural Development employees help construction workers "walk up a wall" during a day of volunteering at a Marysville, Ohio Habitat for Humanity build. The house, which will belong to Union County resident Michelle Amrine, is the first-ever built-from-the-ground-up collaboration between Habitat for Humanity and Rural Development in Ohio. (USDA Photo by Heather Hartley)
In commemoration of USDA’s annual Homeownership Month, some industrious Ohio Rural Development team members and I recently spent a sunny day at a Habitat for Humanity building site, helping Marysville resident Michelle Amrine and her two children frame out a place to call their own.
Financed through USDA Rural Development’s Direct Home Loan program, the home is being constructed through Habitat for Humanity of Union County. Although earlier projects in the state included funds for the rehabilitation of already-existing construction, the Amrine house marks the first “from-the-ground-up” collaboration between Ohio Rural Development and Habitat for Humanity. Read more »
With support from a USDA Business and Industry Guaranteed Loan, the Cellars at Jasper Hill in rural Greensboro, Vermont was able to expand its facility, grow its business and reach new markets.
Last month, Secretary Vilsack announced a historic level of funding available for local and regional food: $78 million, including $48 million through USDA’s Business and Industry Loan Guarantee Program and $30 million through the newly-expanded Farmers Market and Local Food Promotion Program. The 2014 Farm Bill gave USDA these and other tools and resources, expanding our ability to connect rural and urban communities, increase access to healthy foods, and support rural economies through local food systems.
What does this mean for rural economies? Consider Cellars of Jasper Hill in Greensboro, Vermont. The Kehler brothers took their passion for dairy and founded a cheese making operation 10 years ago. Partnering with Vermont’s Community National Bank, USDA’s Business and Industry Loan Guarantee Program helped the company construct a 22,000-square-foot facility and expand its on-farm value-added cheese production. The project helped save 20 existing jobs and created 14 new ones in a town with fewer than 1,000 residents. Read more »
A USDA Section 502 Home Loan Guarantee helped the Goetz family secure a bank loan on their rural Kansas home.
In rural areas, financing a home can be difficult. There often aren’t as many lenders serving rural locations as there are in more densely populated parts of the country. Also, some rural lenders may require a larger down payment or a higher interest rate to secure a loan. Fortunately, USDA Rural Development partners with more than 3,000 housing lenders to make sure low- and moderate-income rural families have a chance to enter the housing market.
Through the Section 502 Guaranteed Housing Loan Program, USDA Rural Development backs loans made by approved lenders for the purchase, refinance, renovation, or repair of an owner-occupied residence. The USDA guarantee allows lenders to provide 100-percent financing on a safe, low-interest, 30-year mortgage. Read more »