USDA Seeks Applications to Support Low-Income Groups in Buying or Fixing Homes

Minnesota Homeowner Assistance

The United States Department of Agriculture (USDA) Rural Development program in Minnesota is currently accepting applications from very low- and low-income individuals and families who are interested in purchasing or repairing a home in rural areas. This program provides financing to qualified applicants who may not be eligible for traditional financing due to low income or other factors.

The Direct Home Loan program is a great option for those who require financing for their homes. The program does not require a down payment, and the interest rate may be as low as one percent with a subsidy. However, applicants must meet certain income and credit requirements and demonstrate their ability to repay the loan. This program is available in rural communities with populations of generally 35,000 people or less.

The maximum loan amount for the Direct Home Loan program is $40,000, with an interest rate of one percent. This loan can be repaid over a 20-year term and can be used to improve or modernize homes and make essential repairs. Additionally, grants of up to $10,000 are available to homeowners who are 62 years of age or older. These grants must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace.

If you’re interested in this program, contact a USDA Rural Development Housing Specialist in your area today to determine your eligibility. The USDA Rural Development loans and grants also provide assistance to support infrastructure improvements, business development, housing, community services such as schools, public safety, and healthcare, and high-speed internet access in rural areas.

For more information on this program and others offered by the USDA Rural Development, visit If you have further questions, you can contact the Baxter Rural Development Office located at 7118 Clearwater Road, Baxter, MN 56501 or call at 218-829-5965, ext. 110.

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