45°F
weather icon Clear

Pahrump once again eligible for USDA homebuying programs

The U.S. Department of Agriculture Rural Development division is dedicated to helping improve lives in rural communities all across America and some of its most impactful efforts come in the form of rural home-buying programs.

In recent years, Pahrump has been left out of the opportunities the governmental entity provides but that has now changed. Local residents are once again eligible for USDA’s rural housing programs.

Earlier this month, a very excited group of USDA Rural Development Nevada staffers made a trip to the valley to make the announcement and were obviously pleased to be imparting such positive news.

“We are back in business in Pahrump” Phil Cowee, USDA Rural Development Nevada state director, stated proudly during the announcement event. “We were able to get Pahrump redesignated again. It had fallen out of the program based on the program but the population cap has been readjusted so you guys can now utilize the program.”

The USDA rural housing homeownership efforts include two separate programs, one of which is the single-family housing guaranteed loan program. This program gives individuals a chance that they may otherwise not have as it provides a 90 percent guarantee to back a loan obtained through an approved lender. By facilitating the securing of loans, USDA can help many begin the journey of purchasing a home of their own.

“This program assists approved lenders in providing low and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas,” the USDA Rural Development website detailed.

“Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90 percent loan note guarantee to approved lenders in order to reduce the risk of extending 100 percent loans to eligible rural home-buyers. This program helps lenders work with low and moderate income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.”

With Pahrump recently moved back into the qualified category, local residents can once again take advantage of the opportunity USDA’s guaranteed housing loan program presents. However, this is not the only option for residents to consider and those who cannot get a loan any other way may be able to do so through the USDA direct home loan program.

Although the eligibility requirements are more stringent, that is because the direct home loan program is geared specifically toward those who are currently living in an unsatisfactory dwelling or location. Participants are able to receive a loan straight from USDA along with payment assistance in the form of a reduced mortgage for a short period of time.

“Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities,” the USDA site explained.

According to the information provided, the first requirement a potential applicant of the direct home loan program must meet is that they are at that time without decent, safe, sanitary housing. Furthermore, applicants must be unable to obtain a loan from any other source with terms that they could be reasonably expected to meet. The direct home loan program also requires applicants meet low or very-low income eligibility requirements. A detailed list of the income requirements for all USDA rural housing programs is available at rd.usda.gov

Once the direct loan is obtained, participants will have a fixed-interest rate based on current market loan rates and with the payment assistance, the rate could be as low as 1 percent. The typical term of a direct home loan is 33 years but there is a 38-year term period for very-low income applicants who cannot afford the 33-year loan term.

Those qualifying applicants with assets above the asset threshold may be required to use a portion of those assets as a down-payment but in general, program participants do not need to provide any down-payment at all, helping them jump one of the biggest hurdles to homeownership.

More information on these programs can be found online or by calling 702-407-1400 extension 6007.

Contact reporter Robin Hebrock at rhebrock@pvtimes.com

Don't miss the big stories. Like us on Facebook.
THE LATEST
PAHRUMP | BUSINESS BRIEFINGS

Arby’s eyes completion; new coffee cafe coming to Pahrump; local bakers make cake for ‘Growing Up Hip Hop’ wedding and more…

Cell phone signal was key to rescue of 2 hikers at Death Valley

Two unidentified hikers were rescued by helicopter from Telescope Peak Trail on Wednesday, Feb. 1, after sliding downhill in freezing and icy conditions, park officials say.

Here’s where to turn to when grief becomes too much

Nearly every person will experience the loss of someone they know and love but the manner in which each individual deals with such events can vary vastly. GriefShare is there to help.

New parents can find help at this diaper bank ‘pop-up’ event

Pahrump Salvation Army is holding a freediaper bank pop-up event for area parents at its service center, 40 Dahlia St. from 10 a.m. to noon on Friday, Feb. 10. No registration is required.

Cortez Masto takes aim at egg prices, price gouging

Nevada’s average price for a carton of eggs has surged to $6.07 at the end of 2022, while the national average is $4.25, according to Catherine Cortez Masto’s letter.

ICYMI: See the animals at the Nature Health Farms ‘fun’draiser

Nature Health Farms was the venue for plenty of amusement this past Saturday, with a bevy of activities and entertainment taking place during the farm’s 3rd Annual “Fun”draiser.