Agriculture Deputy Secretary Kathleen Merrigan today announced that 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.
Earlier in the day, Merrigan attended the Homes Within Reach 2009 Conference, sponsored by the Housing Alliance of Pennsylvania. She highlighted that in fiscal year 2009, USDA Rural Development provided 127,871 loans through its Direct and Guaranteed loan programs, compared to 64,134 loans nationwide in fiscal year 2008. This increase was possible, in part, because of the Recovery Act.
During her remarks to the group, she also underscored the Obama Administration's commitment to strengthening the nation's economy through financially responsible housing and homeownership programs, administered through USDA Rural Development. She also discussed the direction of USDA housing policy as well as the challenges and opportunities faced by rural housing providers.
Through Recovery Act funding, USDA Rural Development offers guaranteed and direct single-family-housing 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 uses 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.
USDA received $11 billion through the Recovery Act to provide guaranteed and direct home loans for rural Americans. Funding for direct home loans is still available. For information on how to apply for USDA homeownership or rental housing assistance, contact any Rural Development state or area office. A list of these offices is available at www.rurdev.usda.gov.
USDA Rural Development administers and manages more than 40 housing, business, and community infrastructure and facility programs through a network of 6,100 employees located in 500 national, state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $125 billion in loans and loan guarantees.