The U.S. Department of Agriculture Rural Development office has 1-percent loans available to rural homeowners with very low incomes who occupy a home in need of repair.

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“Now is a good time for homeowners to evaluate the need for necessary repairs or replacement of items such as a furnace, roof, windows, siding, insulation and storm doors,” said David Willis, Area Specialist for USDA Rural Development. “Electrical, plumbing, sanitary disposal systems, making a home accessible for disabled household members or modernization of a home may be also be eligible under the program.”

The USDA defines "rural" as communities with a population of 20,000 or less.

Eligibility is based on household income and the applicant’s credit history, repayment ability and inability to afford a conventional loan, the USDA says.

A USDA repair loan may be for up to $20,000 at 1-percent interest, with a repayment term of up to 20 years.

Loans of less than $7,500 may not require a mortgage against the property. The low interest rate and extended terms of the loan makes repayment more affordable for households with limited income.

For example, a $10,000 loan at 1-percent interest for 20 years would have a monthly payment of $46, compared to a conventional loan with an interest rate of 7-percent for 10 years, with a monthly payment of $116.

Rural Development has adequate loan funds available, Willis said.

For additional information or to obtain an application, contact David Willis or Beth Fries at USDA Rural Development, (308) 534-2360 ext 4 or david.willis@ne.usda.gov or beth.fries@ne.usda.gov. Visit: www.rurdev.usda.gov/ne/.