housing

In rural areas, financing a home can be difficult. There often aren’t as many lenders serving rural locations as there are in more densely populated parts of the country. Also, some rural lenders may require a larger down payment or a higher interest rate to secure a loan. Fortunately, USDA Rural Development partners with more than 3,000 housing lenders to make sure low- and moderate-income rural families have a chance to enter the housing market.

Through the Section 502 Guaranteed Housing Loan Program, USDA Rural Development backs loans made by approved lenders for the purchase, refinance, renovation, or repair of an owner-occupied residence. The USDA guarantee allows lenders to provide 100-percent financing on a safe, low-interest, 30-year mortgage.

Heavy rains can cause flooding and erosion, and for homeowners in West Columbia, S.C. – a new cliff right below their bedroom.

Two major rain events last spring and summer transformed Natchez Trail Road into a flowing river, ultimately creating a 35-foot cliff near a home. Sue and Bob Allen turned to the city and USDA’s Natural Resources Conservation Service for help.

“This is so exciting,” said Sue Allen, after the project was completed near her home. “Somebody heard our pleas.”

Rural America faces tremendous uncertainty today. Congress has not yet passed a Food, Farm and Jobs Bill, and the current extension of 2008 Farm Bill programs will soon expire. Additionally, thus far, no budget has been provided by Congress to continue funding the Federal government past September 30.

Amid this uncertainty, USDA remains focused on our mission and on our work to revitalize the rural economy.  We have delivered record investments under President Obama’s leadership, and we will continue working to do so.   In a time of reduced resources, we’ve also taken a wide range of new, collaborative approaches with other government agencies—complementing our public-private partnerships and creating better collaboration among state and local partners.

How much will that little bundle of joy cost? According to USDA’s Cost of Raising a Child report, the answer for a child born in 2012 is $241,080 for food, shelter and other necessities over the next 17 years, which translates to about $301,970 when adjusted for inflation!

Speaking as a father and a grandfather, I know how much we as parents want to give our children the tools they need to excel at anything they set their minds to—from the essentials, like a roof over their heads and a quality education, to the fun stuff, like a brand new soccer ball, piano lessons or a trip to summer camp. We work hard to ensure our children’s future happiness and success each and every day.

Recently, Crow Creek Sioux Tribal Chairman Brandon Sazue Sr.  joined USDA Rural Development Acting Housing Director Bruce Jones and Lori Moen, Chief Operating Officer for GROW South Dakota (GROW) in the signing of a Memorandum of Understanding that will streamline the process towards increased homeownership on the Crow Creek Indian Reservation.  “What we do today can make a difference for tomorrow.  By working together, we support the betterment of our Tribe as we know housing is much needed on our Reservation” said Chairman Sazue Sr.

The Norfolk, Nebraska Area Habitat for Humanity (NAHFH) wanted to expand the impact of its home construction program, and get a more immediate return on investment so it could help the greatest number of people in need. USDA Rural Development was the agency NAHFH felt was best met that need.

“As we determine the future of federal spending, ensuring adequate housing in rural America must be a priority”- that was the statement that many folks, including Under Secretary Dallas Tonsager echoed at the 2012 National Rural Housing Conference, held last week in Washington DC.

Boardman, Oregon, is a port town of just over 3,000 on the banks of the Columbia River surrounded by productive farm lands. These resources have helped the community generate above-average economic growth through its agricultural, food processing, manufacturing, and shipping sectors. As these industries have grown, however, a significant shortage of affordable workforce housing has made finding and keeping skilled employees difficult and hinders further economic development in this promising community.

In order to secure affordable housing, many who work in Boardman have had to endure long commutes from outlying towns or settle for homes that simply did not meet their families’ needs. Martin Paredes, Olgalibia Rosales Rivera, and their four children are one such family. Due to a lack of rental options in the community, the family was living in a two-bedroom apartment in a part of town that offered few family-friendly amenities and services.

After years of paying rent while wishing he could purchase his own home, 29-year-old Adam Brautigan was finally able to do so with the help of USDA Rural Development. Adam found out about Rural Development’s home loan program from his mother, Mary Kay, who works as a realtor in Pine City, Minnesota.

Adam works at a local retail store, and his wages restricted the amount of money available to put toward a house payment.

The American Recovery and Reinvestment Act of 2009 enabled USDA Rural Development to help more than 80,000 families in rural communities secure safe, decent, affordable homes.   In the depths of the recession in early 2009, new home construction and private sector mortgage lending virtually ground to a halt in rural America.