For full story: http://www.usda.gov/2006/05/0175.xml Release No. 0175.06 Terri Teuber (202) 720-4623 Wayne Maloney (202) 690-0498 USDA ANNOUNCES FUNDS TO HELP HOMEOWNERS AFFECTED BY HURRICANES WASHINGTON, May 25 - The U.S. Department of Agriculture today announced the availability of funds to assist qualified homeowners who are behind on payments because of last year's hurricanes. Homeowners who have financed their homes through USDA Rural Development's Guaranteed Loan Program are eligible. The new program is called the Mortgage Recovery Advance Program and will allow eligible borrowers to receive a one-time advance from their lender that is enough to make their past-due mortgage payments. Rural Development will reimburse the lender for eligible advances. "Ensuring families have a safe, affordable place to live is one of the cornerstones of rebuilding this area and USDA and the Administration are proud to be part of this effort," Deputy Agriculture Secretary Chuck Conner said. "This program helps families with USDA guaranteed loans to remain in their homes and catch-up on their mortgage payments so they can get back on their feet." Only borrowers who do not currently have the ability to meet their normal monthly mortgage obligations due to a verifiable loss of income, or increase in living expenses due to the hurricanes are eligible for consideration. No more than 12 months past-due installments, including delinquent principal, interest, real estate taxes and hazard insurance, can be advanced. Borrowers in need of assistance should work directly with their lender to arrange a suitable plan for catching up on their payments. Section 502 Guaranteed Loans are made to qualifying low- and moderate-income families to purchase modest homes in rural areas. The loans are made by conventional lenders, such as banks and mortgage companies. Loans can be made for up to 100 percent of the appraised value of the property. Rural Development guarantees the loan made by the lender in case of default by the borrower. USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development has invested more than $63 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result, more than 1.1 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov. # USDA News oc.news@xxxxxxxx 202 720-4623 ---------------------------------------------------- To unsubscribe, send email to mailto:webservices@xxxxxxxx?subject=UNSUBSCRIBE and reference your email address.
