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 email@example.com
Home at Last helping to make houses into homes
Pet Adoption program for new homeowners
Home a Last is an organization on a mission to help Nevadans become homeowners and one program that can be utilized in conjunction with the USDA’s rural housing guaranteed loan program is Home at Last’s down-payment assistance program.
Undoubtedly one of the biggest impediments to home buying is the often large down payment required just to get started. With Home at Last at their side, however, buyers can receive up to $22,600 in down-payment assistance in order to surmount the challenge.
Once they do, new homeowners will obviously want to start transforming their purchase into a real home and for many, a home does not truly seem complete without a pet. That is yet another way Home atLast is helping Nevadans, by providing its Pals Pet Adoption program.
“Everyone deserves to find a home!” Home at Last’s website reads. “You pick your furry friend and we’ll pick up the adoption fee… An exclusive benefit for Home at Last Down Payment Assistance program participants, new homeowners will receive a certificate to present to their local participating shelter within 60 days of the purchase of their home and Home atLast will cover the adoption fees.”
There are four listed participating shelters, including the Northern Nevada Humane Society in Carson City as well as Reno, the Nevada SPCA in Las Vegas and Desert Haven Animal Shelter in Pahrump.
To learn more about the down-payment assistance and pet adoption programs visit www.nvrural.org or call 775-886-7900.