The U.S. Department of Agriculture recently announced available funding for families of moderate to low income in Western New York and Chautauqua County.

Under the USDA’s Single-Family Housing Program, eligible recipients have the ability to apply for a guaranteed or direct loan. Jennifer Jackson, housing director for the USDA Rural Development New York Single Family Program, said the agency for many years has worked to increase homeownership opportunities for families and individuals. An office in Bath services the region including Chautauqua and Cattaraugus counties.

“We get about $19 million a year in allocated funding,” Jackson said, adding the program is reaching out to areas not in close proximity to the Bath office. “There is tremendous potential for Western New York, and these funds will contribute toward building safer communities that people can call home.”

Specific to the loan programs, Jackson said income limits cater to the family size. For example, households with one to four people qualify for the guaranteed program with an income of $74,750 or less. If there are five to eight people in the household, the qualifying income is $98,650 or less.

“That can reach a lot of families in Chautauqua County,” Jackson said.

The guaranteed program is putting over $270 million into New York’s rural economy, Jackson said. The program, geared toward middle-income families, relies on lenders in rural communities that process, hold and close the loan to make home affordability easier. The rural housing agency guarantees the loan, thereby reducing the lender’s risk and enabling them to provide financing at more favorable rates. Guaranteed loans can be made on a new or existing home for up to 100 percent of the appraised value, Jackson said.

“It’s like an insurance policy to help provide an environment where (lenders) can give more flexible terms on their financing,” Jackson said.

The direct loan program allows low-income families to receive loan assistance to purchase a home in designated rural areas of the USDA. The loan assistance provides flexible terms and interest rates. In many cases, families qualify for some level of subsidy on interest rates to make homeownership affordable. The program is geared toward low-income families, and no down-payment is required.

The rural housing agency also offers loans under the Home Repair Program for low-income homeowners looking to improve their residencies. The interest rate on the loan is 1 percent, and the maximum term is 20 years. Applicants may obtain multiple loans with a maximum outstanding loan amount at a given time of $20,000. Grants are available to very-low-income homeowners ages 62 or older who cannot afford a loan. Grants are limited to a lifetime assistance of $7,500, and must be used to remove health and safety hazards, or make a home more handicap accessible.

“If someone needs a wheelchair ramp or features in their bathroom, we can help them out,” Jackson said. “It’s ideal for seniors. We can certainly prescreen for eligibility.”

A pre-qualification review by calling the office is available before heading into the application process, Jackson said. Based on unverified income information, Jackson said they can tell families in a few days whether they appear to meet credit and income criteria.

“They can make an informed decision based on information to show what a person needs to do,” Jackson said. “Counseling is offered to discuss impairments and the ability to obtain financing in terms of repayment and credit worthiness. Hopefully, that will give them the tools needed to pay debts, increase income to make the best decision and determine when it would be the best time to apply.”

By visiting www.rd.usda.gov, families can prequalify online to see for which loan to apply. The website also maps eligible lending areas to identify eligible property. Applications for the loan programs can be obtained through mail or online.

“Our website is interactive,” Jackson said. “You can zoom right in to the street. Within seconds, it’ll tell you whether that property is located in an eligible area.”

The Rural Development Housing program is encouraging families and individuals to apply through their direct assistance. Under the direct and guaranteed loan programs, 2,476 loans and grants were issued in New York during fiscal year 2014.

For information on the program and how to apply, call the Bath office at 607-776-7398 ext. 4.