USDA loans available for some in Cape County

USDA Rural Development is hoping qualifying homeowners in Southeast Missouri take advantage of a program designed to assist needy residents in Bollinger, Cape Girardeau and Perry counties.

In its 35th year, the Section 504 loan program provides assistance for repairs, improvement or modernization of a home, removal of health hazards and making a house safer.

Debra Baker, area technician for the Jackson Rural Development office that serves the three-county region, said some of the funds have been used for roof repair, installation of new heating systems, siding replacement, remodeling for handicap accessibility and window replacement.

Baker said during the last three fiscal years her office has assisted 27 families. But she hopes more people will apply for the loans.

"This is a very affordable loan program for the very low-income individual or family instead of credit cards or finance companies' interest rates," Baker said.

To be eligible, homeowners' income must fall below 50 percent of the area's median income. The homeowner must live in a home that is either their primary residence, a family member's property or is an inheritance. Loans are not issued for rental properties.

The qualifying income level for a family of four is $22,400 in Bollinger County, $29,200 in Cape Girardeau County and $26,800 in Perry County. Residents also must live in a community with a population of 20,000 or less.

The most a homeowner can borrow is $20,000 at a 1 percent interest rate. The maximum repayment term is 20 years.

If homeowners are 62 years old or older, meet the income requirement and do not have the ability to repay the loan, Baker said, they may qualify for a grant. Grant funds have a lifetime limit of $7,500.

Further information about the loan program may be found online at www.rurdev.usda.gov/mo, in person at 480 W. Jackson Trail in Jackson, by calling 243-3158 or by e-mailing randy.flowers@mo.usda.gov or debra.baker@mo.usda.gov.

bblackwell@semissourian.com

388-3628

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