More Money Available for Rural Development

| 5/22/2012

People who are interested in building in rural North Dakota will have access to more funds. The Industrial Commission authorized the North Dakota Housing Finance Agency (NDHFA) to increase the maximum guarantee under the Rural Construction Loan Guarantee Program. The program is designed to assist development in areas with a population of less than 5,000.

"North Dakota Housing`s program helps alleviate an obstacle to financing construction of affordable single-family housing in rural areas," said Gov. Jack Dalrymple. "This type of development is an important part of a housing strategy for these communities."

"Rural lenders may be reluctant to assume the risk of speculative construction lending," said Attorney General Wayne Stenehjem. "The guarantee program helps mitigate this perceived risk."

NDHFA will now share in any potential net loss for a construction loan up to $187,000. This allows for a guarantee on a home valued up to $220,000. The previous guarantee was based on a home price not to exceed $160,000.

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