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Michigan |
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Single Family Housing Programs
The Single Family Housing Program provides homeownership opportunities
to low and moderate-income rural Americans through several loan
and guarantee programs. The program also makes loan and grant funding available to
individuals to finance vital improvements necessary to make their homes
decent, safe, and sanitary.
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Direct Home Loan
Under the Direct Loan program, individuals or families receive direct
financial assistance directly from Rural Development 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 Rural Development is able to make loans to those who will not qualify
for a conventional loan, the Rural Development 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.
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Home Repair Loan and Grant
Program
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.
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Guaranteed Home Loans
Under the Guaranteed Loan program, the Rural
Development guarantees
loans made by private sector lenders. (A loan guaranteed through RD means
that, should the individual borrower default on the loan, RD 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 102% 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 RD makes the reality of owning a
home available to a much larger percentage of Americans.
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