Welcome to the Montana Rural Explorer, USDA Rural Development Montana's monthly newsletter where you will find updates on funding opportunities and activities related to our Business, Cooperative, Energy, Electric, Telecommunications, Water and Environmental, Community Facilities, Multi-Family Housing, and Single Family Housing programs.
June is National Homeownership Month!
A message from Montana's Single Family Housing Program Director, Katina Uecker
During June, as we celebrate National Homeownership Month, I would like to take a moment to highlight some of our fantastic success stories which resulted from the hard work and dedication of our USDA Rural Development Montana Single Family Housing team.
This group of talented individuals understand that well-built, energy efficient, affordable housing is essential to the vitality of Montana's rural and Tribal communities. Have a read through the stories below and see how these programs are literally changing lives.
Speaking of Tribal communities, we are encouraging those who are part of Federally-recognized Tribes to take advantage of the low interest rates and extended payback periods that our Section 502 Direct Loans offer. With no money down, this financing opportunity allows future homeowners to obtain decent, safe and sanitary housing on Tribal lands.
I also would like to acknowledge our partner lenders who come alongside USDA RD to provide guaranteed loans under our Single Family Home Loan Guarantee program. Last year, we assisted several hundred Montana families / individuals through this initiative, and Mann Mortgage LLC, Stockman Bank, Opportunity Bank of Montana, Glacier Bank and Guild Mortgage Company collectively issued 371 loan note guarantees so they could better help members of our rural communities move into affordable housing.
Lastly, under our Mutual Self-Help Housing Technical Assistance grants, we continue to partner with Helena Area Habitat for Humanity, the National Affordable Housing Network in Butte and NeighborWorks Montana, in Great Falls, on some amazing projects. However, we are still actively looking for a Bozeman or Billings area grantee to champion similar affordable housing projects in these areas.
If you are interested in learning more about Single Family Housing programs in Montana, I would encourage you to visit our website or give us a call at (406) 585-2515 for additional assistance.
Here's to a safe and happy National Homeownership month. Congratulations to those who have recently closed on a new, first home, as well as those who are still working hard to make the dream come true!
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The Single Family Housing Team
Single Family Housing Programs
Montana's USDA RD Single Family Housing Programs help individuals and families in our rural communities realize the joy of homeownership through four programs. These are outlined below, along with a few Success Stories which showcase these programs in action!
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Single Family Direct Home Loans (Section 502 Direct Loan Program):
- Providing loans directly to families and individuals so they can buy or build homes in rural Montana.
- Enabling qualified lower-income applicants to buy homes with no money down. (Applicants with assets higher than the asset limits may be required to use a portion of those assets.)
- Assisting low- and very-low-income applicants obtain decent, safe and sanitary housing by providing payment assistance to increase an applicant’s repayment ability.
- Effective May 1, 2021, the current interest rate for Single Family Housing Direct home loans is 2.50% for low-income and very low-income borrowers.
- Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower.
- Interest rate when modified by payment assistance, can be as low as 1%.
- Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term.
A Single Mom's Road to Homeownership
Amanda D., a single mother of two, never thought she would be a homeowner. But, with growing concerns that the rental she was in might be sold as a vacation property, in October, 2020, she decided to roll the dice and apply for a USDA Rural Development Section 502 Direct Loan.
Amanda had her heart set on a Community Land Trust home located in Kalispell, Mont. because, with area housing so high, this home seemed to be the ideal choice.
Despite delays, which included a listing date that was later than anticipated, Amanda remained steadfast and, by March 23, 2021, she closed on her new residence.
“It’s been such a blessing to be in this house and we’re all finally settled in and adjusted to it,” Amanda said. “The kids made new friends the second week here and my dog loves his new backyard and the walking path just up the street.”
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Single Family Home Repair Loans and Grants (Section 504 Home Repair Program):
- Providing loans and grants to help Montana's families and individuals repair and modernize homes, making them safer, healthier places to live.
- Offering home repair loans and grants to:
- Make accessibility improvements to accommodate elderly and household members with disabilities;
- Remove health and safety hazards;
- Perform necessary repairs, such as repair damaged roofs, and electrical and plumbing systems; and
- Make homes more energy efficient.
New Roof Brings Life to Historic 1900s Home
Seventy nine year-old Stephen (Steve) S. resides in the old mining town of Marysville, Mont., in an historic home which was constructed in 1900.
Steve has lived under the same shingled roof for decades but, for the past 30 years, the roof has gone without repair. However, last year, Steve knew that time and age had taken its toll on his home and it was time for an upgrade.
So, he elicited the help of his friend and neighbor, Debbie, to assist him with completing the USDA RD Section 504 Home Repair Program application.
Steve was able to obtain the funding he needed to repair his aging roof but, because of the home’s historical significance, he could not move forward with the roof maintenance until he had concurrence from the State Historic Preservation Office (SHPO).
He worked with USDA RD Montana’s Single Family Housing Specialist, Cindy Donnell, who gladly coordinated with SHPO to receive the necessary concurrence so the repairs could be made.
Steve loves his new roof and commented that USDA RD Montana helped him save the integrity of his home and Cindy's dedication to ensuring the success of this project restored his belief that the government really cares about the elderly.
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Mutual Self-Help Housing Technical Assistance Grants:
- Providing grants to qualified Government non-profit organizations, Federally-recognized Tribes and Private non-profit organizations to help them carry out local self-help housing construction projects.
- Offering a unique opportunity for families and individuals to lower the overall purchase price of a new home by investing “sweat equity” into the construction.
The Home that Friends Built
As a single mother of two, Amber W. works as a youth counselor, a YMCA fitness instructor, and a dance instructor for children and adults with disabilities in Helena, Mont.
Amber had long dreamed of becoming a homeowner and, in 2021, her vision came to fruition through a combination of USDA Rural Development (RD) Single Family Home Loans and Grants.
"Each friend would take a turn spending a Saturday to help me build, and my best friend would drive from Bozeman once a month to help," said Amber. "It was nice to learn how to do new things with them. If we messed something up, we would have a good laugh about it and try again. It took a lot of pressure off of not knowing what we were doing. We learned so much in the process and power tools are no longer intimidating!"
While Amber's 11 and 14-year old children were not old enough to help with the build, they did come out on non-build days to help with small projects, including picking out their bedroom paint colors.
"With COVID, we couldn't have as many volunteers as we usually have [for the build], so, many times, it was just us [the neighbors] helping each other. I think that created a huge bond," Amber recollects.
With hours of sweat equity poured into the construction process, Amber shared that her family was overcome with gratitude as the build neared completion.
"A dear friend of mine once told me that my home is 'The home that friends built'," Amber shared. "She said it was one of the most beautiful things to see. Whenever I think about that, it makes me tear up because it’s absolutely true. Each part of my home has a memory built into it...sometimes giggles, sometimes struggles but mostly lots of love!"
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Multi-Family Housing Programs
Montana's USDA RD Multi-Family Housing Programs provides affordable multi-family rental housing in rural areas by financing projects geared for low-income, elderly and disabled individuals and families as well as domestic farm laborers.
If you are interested in one of these programs, select a Multi-Family Housing Program from the following list or reach out to Western Region Director Becki Meyer, (360) 704-7702, for assistance:
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