June 9—AILE ROUGE — Need help buying your first home? Update a business? The USDA has a few solutions.
The United States Department of Agriculture has opened its Rural Development Program for residents of Goodhue County as well as surrounding towns such as Fairbult, Owatonna, and Northfield. The program focuses on three areas of development in housing and operating areas such as business, housing and utility programs in rural areas.
Residents who may become eligible for the housing program in Goodhue County and surrounding towns must be unable to obtain financing for a home loan through conventional home lenders such as mortgage brokers. They must also occupy the property they hope to finance with the loan they are applying for under the Rural Development Housing scheme.
Chuck Phillips, director of the Faribault Rural Development Office, spoke about additional loan eligibility qualifications for county applicants seeking assistance under the housing program.
“In terms of eligibility, people have to be either first-time home buyers or have adequate housing. That can be quite a broad definition because we work with people in a rental situation, people who own a house unsuitable for their needs, general concerns with We can look at doing a rural development loan on a new property and help sell the old one,” Phillips said.
For those wishing to apply for the Rural Development Housing Program, they should contact the Faribault-based USDA Rural Development Office if they reside in Goodhue, Faribault, Owatonna, or Northfield County. From there, candidates will be directed to the
USDA Single Family Housing Direct Loans Page
to review the resources and training needed to complete the application.
The maximum loan limit for Goodhue residents applying for and receiving financial assistance for the 502 Housing Program is $336,500. Phillips shared that there is no deadline for applicants to apply to the program or receive loans from the program.
“There really is no application date, we accept applications for the fiscal year. There may be periods at the beginning of our fiscal year, if Congress has not passed a budget, or if we do not “We don’t have an ongoing resolution, where there might be a slight gap and funding. But generally, we have funding for them pretty much here in terms of being able to help owners,” Phillips said. .
During 2019-2022, five households in Goodhue County received $905,360 split among them for direct home loans for mortgage payments. During the same period, 224 households received $41,968,000 to
In Goodhue County, 5 households received funding of $905,360 for a single family from direct rural development, for the period indicated. In addition, another 224 households received funding of $41,968,000 under the Guaranteed Single-Family Housing for Rural Development program.
In addition to the 502 rural development housing program, the small town development program was another focal point of the summit on Wednesday morning. The Small Town Development Program is funded by the federal government and the program provides fee-free funds through a competitive grantmaking process that focuses on awarding said grants to towns with populations under 50,000 and to counties with populations under 200,000.
Those seeking to apply for the Small Town Development Program must use the funds for federal purposes such as the elimination of slums and degraded conditions from the inner city or the targeted area of the community for which the program focuses the funding.
Applications for the Small Town Development Program must be submitted by mid-March each year to the Southeastern Minnesota Multi-County Housing and Redevelopment Authority. Once the application is submitted, SEMMCHRA will provide financing to properties or businesses that are current on property taxes, are permanent structures, and have adequate insurance to cover all mortgages, including repayment.
The Small Town Development Program has already planned 20 properties in Goodhue County and 19 on Pine Island. Since its inception in 1987, the Small Town Development Program has rehabilitated 389 properties, an average of 11 per year according to Karen DuCharme, director of administrative development at SEMMCHRA.