USDA Rural Development is accepting applications for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.

The Direct Home Loan program offers financing to qualified  applicants in rural communities of generally 35,000 people or less.

The maximum loan amount is $20,000 at a 1 percent interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace.

Time is limited to receive funds for the current fiscal year. Contact a USDA Rural Development Housing Specialist for more information, www.rd.usda.gov/mn.