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84,000 Families Have Achieved Homeownership Through The Reinvestment and Recovery Act And USDA Loans
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According to USDA Release 0608.09 and Agriculture Deputy Secretary Kathleen Merrigan, 84,021 rural families from throughout the country have become homeowners so far as a result of USDA funding provided by the American Recovery and Reinvestment Act (ARRA). Merrigan made the announcement while standing on the front porch of a Carlisle, Pa., home that Kelly Hench, a mother of five, purchased in April with ARRA funds.
“Homeownership and access to affordable housing are important to maintaining stable communities, and the Obama administration is committed to ensuring that all Americans have the opportunity for a safe, suitable and affordable place to live,” said Merrigan. “This Recovery Act funding has helped people like Kelly Hench and allowed USDA to meet the overwhelming demand from rural families seeking homeownership.”
Shortly after Hench bought her bi-level house in Carlisle, she converted the lower level into bedrooms for herself and the youngest of her five children. The other children all have their own rooms. Hench is renovating the kitchen and preparing to buy new appliances. She is among more than 2,290 rural Pennsylvania residents who have received home loans as a result of Recovery Act funds during FY 2009.
Through Recovery Act funding, USDA Rural Development offers guaranteed and direct single-family-housing USDA loans to eligible rural residents. Down payments are not required for direct and guaranteed loans, and payments for direct loans are based on the borrower’s income. A reasonable credit history is required, and borrowers must have sufficient income to repay the loan. USDA rural loans use strict underwriting standards to assess each borrower’s credit, income and cash flow. As a result, this single-family-housing loan program has a low delinquency and default rate.
