FUNDING, FUNDING, FUNDING AVAILABLE

Help low and very low-income applicants by marketing the Section 502 Direct Loan Program and low-income and moderate income applicants by marketing the 502 Guaranteed Program.

Advantages:

• 100% financing
• No Down payment requirement
• Fixed interest rate
• Seller contributions limited 6%

Note:  Guaranteed loan has associated fees;  1% guarantee fee (can be financed into total loan amount); .35% lender fee.

504 LOAN/GRANT FUNDING

The Section 504 loan/grant program is to help very low-income owner occupants to repair their homes. Loan funds  are available for repairs to improve or modernize a home, make it safer or more sanitary, or remove health and safety hazards.  Grant funds are available to remove health or safety hazards, or remodel dwellings to make them accessible to a household member with a disability.

• Applicants living in extreme poverty could be eligible for 100% grant assistance up to the allowable $7,500 maximum lifetime limit for eligible project costs
• Affordable loans at a fixed 1% interest rate. A minimum $1,000 loan, only $4.60 per month or 15 cents per day
• Qualified homeowners may receive a maximum loan of $20,000 at a fixed 1% interest rate. Loans and grants may be combined for up to $27,500 in total assistance
• Very-low-income homeowners with a repayment ratio between 30% to 46% may be eligible for a 50% loan and 50% grant
• Grant recipients must be age 62 or older

Maximum loan amount is $20,000.  Maximum grant amount $7,500 lifetime limit.

For More information visit https://www.rd.usda.gov/nj