The following is a listing of HCFP programs which
might be of interest to individuals interested in buying or renovating a
home. Click on a link for a brief description of that program.
Single Family Housing
The Single-Family Housing Program provides
homeownership opportunities to low and moderate-income rural Americans through several
loan, grant, and guarantee programs. The program also makes funding available to individuals to
finance vital improvements necessary to make their homes decent, safe, and sanitary.
Direct Loan Program (Section 502)
Under the Direct Loan
program, individuals or families receive direct financial assistance
directly from the Housing and Community Facilities Programs in
the form of a home loan at an affordable interest rate.
Most of the loans made under the Direct
Loan Program are to families with income below 80% of the median income level in the
communities where they live. Since HCFP is able to make loans to those who will not qualify
for a conventional loan, the HCFP Direct Loan program enables many more people to buy homes
than might otherwise be possible. Direct loans may be made for the purchase of an
existing home or for new home construction.
To learn more details about this program, click
here.
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Loan Guarantee Program (Section
502)
Under
the Guaranteed Loan program, the Housing and Community Facilities Programs guarantees loans made by private
sector lenders. (A loan guarantee through HCFP means that,
should the individual borrower default on the loan, HCFP will pay the private financier for
the loan.) The individual works with the private
lender and makes his or her payments to that lender.
Under the terms of the program, an
individual or family may borrow up to 100% of the appraised value of the home, which
eliminates the need for a down payment. Since a common barrier to owning a home for many
low-income people is the lack of funds to make a down payment, the availability of the loan guarantees from HCFP makes the reality
of owning a home available to a much larger percentage of Americans.
For more details about this program, click
here.
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Mutual Self-Help
Housing Program (Section 523)
The Mutual Self-Help Housing Program makes
homes affordable by enabling future homeowners to work on homes themselves. With this
investment in the home, or "sweat equity", each homeowner pays less for his or
her home. Each qualified applicant is required to complete 65% of the work to build his or
her own home.
Technical Assistance
Grants and Site Loans are provided to nonprofit and local government organizations, which
supervise groups of 5 to 12 enrollees in the Self-Help Program. Members of each group help
work on each other's homes, moving in only when all the homes are completed.
Once accepted into the Self-Help Housing
Program, each individual enrollee generally applies for a Single-Family Housing Direct
Loan (Section 502).
For more details about this program, click
here. To see Self-Help
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Home Repair Loan and
Grant Program (Section 504)
For very low income
families who own homes in need of repair, the Home Repair Loan and Grant Program offers
loans and grants for renovation. The Home Repair Program also provides funds to make a
home accessible to someone with disabilities.
Money may be provided, for
example, to repair a leaking roof; to replace a wood stove with central heating; to
construct a front-door ramp for someone using a wheelchair; or to replace an outhouse and
pump with running water, a bathroom, and a waste disposal system.
Homeowners 62 years and
older are eligible for home improvement grants. Other low income families and individuals
receive loans at a 1% interest rate directly from HCFP.
For more details about this program, click here.
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