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Show FmHA Now Has Interest Credit For Home Repair Loans The Farmers Home Administration Ad-ministration (FmHA) of the U.S. Department of Agriculture Agricul-ture (USDA) had initiated a program to further encourage encour-age the use of existing housing hous-ing and provide better homes for low-income rural families fam-ilies through low interest home inprovement loans. The Agency can now provide pro-vide "interest credits" to reduce the effective interest rate on loans made to rehabilitate re-habilitate or repair a dwelling dwell-ing that a borrower already owns, and either lives in or will live in once it is brought up to standard. Loans of up to $7,000 will be made for repairs that will improve and modernize substandard sub-standard dwellings, so as to provide adequate homes in rural areas. Terms for repayment of the loan may be as long as 25 years. To be eligible for aFmHA home improvement loan with interest credit, the housing must be located in rural countryside or a rural town of not more than 10,000 people. peo-ple. The loans are designed especially for low-income families. Under this program, pro-gram, interest credits can reduce the effective interest rate paid by the borrower to 1 percent if the adjusted family income is less than $3,000. If the adjusted family fam-ily income is more than $3,000 but less than $5,000 the interest rate will be 2 percent. If the adjusted family fam-ily income is between $5,000 and $7,000, interest will be 3 percent. The policy of making interest in-terest credit and repair and rehabilitation loans is aril other method of utilizing the existing supply of housing to improve living conditions of low-income rural people. |