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Show F.H.A Loans Available For Building Of Rental Housing Insured Farmers Home Administration loans to Individuals and groups are available for financing income-producing rental housing for rural senior citizens, points out Clair M. Seeley, County supervisor for this USDA agency. "Loan funds, furnished by private investors and insured by Farmers Home Administration, may be used to build, purchase, improve or repair rental housing to meet the needs of rural residents who are 62 years of age or older," Mr. Seeley explains. "Credit is not extended for nursing, special care, or institutional type of homes." Loan funds may also be used to provide appropriate recreational and service facilities, to buy and improve the land on which the senior citizen housing facilities are to be located; and to develop the water, sewage disposal, heat and light systems required by the houing project. These insured loans carry 5 percent interest on the unpaid principal with a maximum repayment period of 40 years. Each borrower is required to refinance the loan's unpaid balance when able to obtain such refinancing at reasonable rates and terms from other lenders. FHA financed rental housing must be made available only to senior citizens that are residents of small rural towns of not more than 5,500 population. Groups or individuals applying for a FHA insured loan, must be legally capable of furnishing adequate security and have sufficient income to repay the loan. The borrowers must also have the ability to maintain and operate the housing to accomplish the purposes for which the loan was made. The FHA also makes direct senior citizens rental housing loans to private non-profit corporations and consumer cooperatives at a 3 percent interest rate with a repayment period of 50 years. Another Farmers Home Administration program makes credit available to individuals who are rural residents, 62 years of age or older, to buy peviously occupied housing as well as to build or improve their homes, Mr. Seeley points out. He also explained that these loans are made only to applicants unable to finance needed senior citizen rental housing with either their own resources or with credit from private or cooperative sources. More information about these or other rural credit programs is available at the Garfield County FHA office, located in the Houston Building in Panguitch. Mr. Seeley is in his office in Panguitch Monday of every week. |