Rural Development, a Federal Agency has 1% Interest Rate loans available for Albert Lea and Freeborn County homeowners with limited income to repair their home (including sewage system). Maximum loan is $20,000 with repayment terms up to 20 years, as needed. To qualify, applicants must be at or below the household income guidelines (shown below), and have repayment ability. The Market Value of the applicant’s property cannot exceed $157,557.
Freeborn County Adjusted Very-Low Income Limits (Eff 3/3/05):
1 Person = $19,000 2 Person = $21,750
3 Person = $24,450 4 Person = $27,200
5 Person = $29,350 6 Person = $31,500
7 Person = $33,700 8 Person = $33,850
Applicant liquid assets (CDs, checking, stocks, bonds, savings, etc.) are limited to $7,500 for non-elderly households and $10,000 for elderly households (62 years and older). Assets above the limits must be used toward the cost of the repairs.
Loans $7,500 and above, require a mortgage, Title Insurance and must be closed by a Title Company, or Attorney. Closing cost expenses may be included in the loan.
Homeowners 62 and older who have safety or health hazards to be repaired, but do not have repayment ability for the 1% loan, may qualify for Grant funds up to $7,500. Grants are forgiven if the applicant lives in the house at least 3 years after the date of approval.
For more information, please contact USDA, Rural Development, 1408 21st Ave NW, Suite 3, Austin, MN 55912 Tel: 507 437-8247 Ext. 4.