Rural Housing Initiative

“Community Development and Economic Growth through Homeownership”

(This program is on hold until additional funds become available)


The Program and its Projected Outcome
The homeownership initiative “Community Development and Economic Growth through Homeownership” offers those otherwise unable to realize homeownership in rural areas in Illinois the opportunity to stay in their community or live near their workplace and have the American dream through homeownership. The program will sustain rural populations and bring in consumer and tax dollars where they did not exist prior to the program while creating jobs with stick built or modular home construction.

Rural Partners has received a commitment of funds from the Illinois Housing Development Authority (IHDA) to offer zero (0) % thirty year balloon second mortgage loans and grants for down payment assistance and closing costs thereby making a home affordable. Funds go to first time homeowners for new construction of single family homes in rural areas (same definition of rural as used by USDA Rural Development for its housing program). The homeowner must be credit worthy, obtain a thirty year first mortgage loan and make a $1,000 cash down payment.

The zero percent second mortgage is either $25,000 or $30,000 and the grant either $3,000 or $5,000 depending on family income. Homeowners must meet certain credit ratios and receive homeowner counseling. Builders pay Rural Partners a small processing fee.

Lenders, builders, local community officials, housing assistance agencies, Habitat for Humanity affiliates and others help publicize the program, find available building lots, screen homeowner applicants and work with Rural Partners to complete the application package.

Additional information is available from Jerry Townsend, Project Manager, 6707 N. West Arrowhead Dr., Urbana, IL 61802 jerrytownsend@yahoo.com, Tele: (217) 369-1010