Agriculture Secretary Tom Vilsack announces National Home Ownership Month by highlighting USDA’s success in increasing rural home ownership.
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"Even in tough economic times, home ownership remains the foundation by which families and communities lay claim to the American dream," Vilsack said. "President Obama has made home ownership a cornerstone of his economic recovery plan by taking decisive action to protect the homes of existing owners and to provide opportunities for all Americans seeking to buy their first home."
In dozens of communities across the nation, "Preserving HomeOwnership" will be the theme for events and activities throughout the month of June as communities and USDA highlight the benefits of home ownership and share information on ways families can remain successful homeowners during difficult economic conditions.
Activities will also feature weatherization and energy efficiency programs available to rural homeowners; to increase energy efficiency in their home, reduce health and safety risk and improve accessibility for individuals with disabilities.
In 2008, for example, Rural Development financed more than $67 million in repairs for 11,000 rural homeowners. In Missouri, 456 benefitted with repairs to their homes.
USDA Rural Development housing programs are helping more people than ever. USDA provided home ownership loans to more than 72,000 rural Americans last year – a record number – and is on track to help more than 130,000 this year.
"Rural Development’s housing professionals understand the importance of home ownership to rural families and local economies," said Agriculture Under Secretary Dallas Tonsager. "We are committed to bringing the necessary financial and technical resources to rural America to afford rural families the opportunity to purchase and preserve a place they can call home."
Vilsack also pointed out the priority being placed on getting American Recovery and Reinvestment Act funding to rural families. To date in this fiscal year, more than 32,000 families have utilized $4.3 billion of the $10 billion for home ownership. In Missouri over $280 million has been used to assist individuals and families with housing.
In Missouri, Rural Development invested $308 million of financial services for housing last year while assisting over 3,824 rural individuals or families.
In support of the "Preserving HomeOwnership," emphasis will be given to the 504 programs offering loans and grants for repairs to assist eligible lower income homeowners. Funds can be used to repair the home they own to remove safety and health hazards such as repairing roofs, heating, electrical and plumbing systems, water and waste disposal, windows, insulation or other similar improvements.
Last year, Rural Development partnered with conventional lenders by providing $277 million in financial assistance to provide 3,003 eligible applicants adequate housing in rural areas by guaranteeing sound loans that could not otherwise be made without the guarantee. More information is available at http://www.rurdev.usda.gov/mo/grhpage.htm
Also, contributing to this success in rural areas is the 502 Direct Loan program. The program provides subsidies to make mortgage payments more affordable to help low-income rural Americans who have been unable to obtain conventional mortgage credit to share in the American dream.
This program makes home loans available to those with incomes less than 80% of the median in their area. A large portion is allotted to those with incomes below 50% of median. The loans require no down payment and feature installments reduced to a 1% interest rate level.
The goal is to help families, especially first-time buyers, become established in their homes and communities. As household income increases and property equity builds, the loan (including part or all of the assistance received) is repaid.
Anyone interested in obtaining information regarding the Rural Development rural housing programs or any other assistance available through USDA Rural Development may visit the homepage at http://www.rurdev.usda.gov/mo/ or can contact David Clarkson or Danny Jackson, Area Specialists, at the Chillicothe Sub Area Office of USDA Rural Development at 1100 Morton Parkway, Chillicothe, Missouri 64601, or by calling 660-646-6222, Ext. 4.