IMPERIAL – A recent program launched by the United States Department of Agriculture that has had a locally authorized promoter for two years has allowed low- and very-low-income families to access the so-called American Dream.
It is the 502 Direct Loan program that the Imperial Regional Alliance has processed locally since 2019.
According to a promotional pamphlet, the loan limit is currently $ 285,000, for which the beneficiary pays an interest rate of 2.5 percent.
In addition, the project offers extensions and support by Covid19 to adjust to the needs of the applicant.
This program, which includes housing subsidies, is available to low- and very-low-income individuals in rural Imperial County.
However, the program does not include the cities of El Centro and Calexico because their population exceeds 35 thousand inhabitants.
USDA provides monthly mortgage payment subsidies; but the most outstanding thing is that the beneficiary is not obliged to make any payments as is typically the case in other programs and loans.
The program is available to US citizens and permanent residents.
Tim Kelley, executive director of the Imperial Valley Economic Development Corporation, said in an interview that the program offers a mortgage payment reduction of about $ 200 per month compared to other types of loan or program.
The director said that the program takes into account all of the applicant’s assets, so the program, being for first-time home buyers, must not have owned a residence in the last three years.
“The USDA program allows people who cannot access other loans or who have a high income level for other programs to buy a home,” said Kelley.
The director added that this program is only available in rural areas such as the Imperial Valley.
According to Kelley the process of receiving documents and the completion of the process takes about two weeks.
The director explained that this program is different from those offered by other governments due to the geographic location of the homes and the income limits of the applicant. Likewise, he explained that secondary housing payments sometimes make it difficult to access a loan and a home.
Kelley added that the program helps beneficiaries pay other debts they may have incurred, except for health, so they can receive their loans.
“A person with a full-time job can buy a home (with this program),” Kelley concluded.
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