Congressman Markwayne Mullin said the program, the United States Department of Agriculture’s (USDA) 504 Home Repair program for low-income individuals, has been so popular that there’s a waiting list for applicants.
Ryan McMullen, Oklahoma state director of the USDA, said, “Right now we continually have a backlog. It’s not normal that we get an application funded in the year that we receive it in.”McMullen explained that the program’s popularity cannot keep up with the requests for funds, so it could take applicants some time before they receive approval. For those who do eventually receive approval, it can mean either a grant with no payback, or a loan with lower interest rates than those available through conventional means, and lower payments for longer terms.
McMullen said the 504 Loan and Grant program provides qualifying individuals with a low-interest loan for up to $20,000. These loans can be used for cosmetic needs on a home owned by the applicant. McMullen also said the loan applicants can be of any age as long as they are of legal age, and are very low-income.
The grant program also provides residents who are age 62 and older, and who have very low income, with up to $7,500, if they own their property. These grants must be used for health and safety items. This can include a storm shelter. Successful applicants must own the property for the next three years, or they will have to repay the grant in full.
Other types of repairs that would qualify include handicap accessibility features, heating and air conditioning units, floor and sub-floor repairs, foundation repairs, roof repairs and replacements, siding, windows and insulation. These 504 loans and grants are only available in rural areas defined generally as under 35,000 population.
“There’s also a no-down payment loan, known as a 502 Loan, that individuals can use for single-family housing,” Mullin said. “The purpose of the loan is for the purchase of either a new or existing home in a rural area, along with any required home improvements that must be made, and closing costs on the home purchase.”
To qualify, an applicant’s household income cannot exceed the low-income level. The mortgage payments on these loans are for 33 years, and are based on the annual household income. The applicant must be unable to qualify for other mortgage financing or for the guaranteed loan program.
Mullin said more information on any of these loan or grant programs can be found by calling the USDA Rural Development State Office at 405-742-1070. All applications should be sent to the Oklahoma Rural Development State Office.
