SWTDD Offers USDA Rural Loans
Southwest Tennessee Development District has partnered with USDA Rural Development to offer grants/504 loans to Bolivar residents who are unable to finance necessary home repairs through other sources.
USDA rural housing programs are available to qualified applicants in eligible “rural areas” under the agency’s unique statutory definition of “rural. As defined by the USDA website, “A rural area is open country which is not part of, or associated with an urban area; has a population not in excess of 10,000, if it is rural in character; or has a population in excess of 10,000 but not in excess of 25,000 outside Metropolitan Statistical Areas, and has a serious lack of mortgage credit for low-and moderate- income households”. Bolivar meets the criteria to apply for Rural Development home loans as well as 504 loans/grants for home repairs.
In order to qualify for a 504 Loan, an applicant must meet the following criteria: you must be the homeowner and occupy the house, lack sufficient resources or income to make the repairs or to obtain affordable credit elsewhere, have a family income below 50 percent of the area median income, have sufficient income to repay the loan at a 1% fixed interest rate over 20 years, be a U.S. citizen, have the legal capacity to incur obligations or have a court appointed guardian conservator who is empowered to obligate the applicant in real estate matters, and have a credit history that indicates a reasonable ability and willingness to pay debts when due.
When an elderly applicant has income so low as to be only able to repay a portion of the amount needed for repairs and improvements, a grant may be used for the balance. A total grant may be provided to an elderly applicant whose income is so low as to have no Section 504 repayment ability.
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