U.S. Department of Agriculture Rural Development will help local homeowners finance home improvements through low-interest loans and grants.

“Now is a good time for homeowners to evaluate the need for necessary repairs or replacement of items such as a roof, electrical, plumbing and siding,” said Carol Horstman, area specialist in Rural Development’s Faribault office. “Energy efficiency improvements through replacing windows and insulation also qualify. Funds can also be used to replace a furnace, sanitary disposal system and to make homes handicap accessible.”

Horstman said applicants must own and occupy the home, and their income may not exceed guidelines established by county and household size. Income limits vary by county and average $24,700 for a one-person household and $28,250 for two-person household in southeastern Minnesota.

Applicants must have acceptable credit history, show repayment ability, be unable to afford a conventional loan and live in a community with a population of 20,000 or fewer. Faribault and Owatonna are eligible for the program.

The maximum loan is $20,000, repayable within 20 years with a 1 percent interest rate.

Grants are limited to elderly homeowners older than 62 and can only be used to remove health or safety hazards or remodel dwellings to make them accessible to household members with disabilities. The maximum grant is $7,500.

For assistance, contact the USDA Rural Development office at 1408 21st Ave. NW #3, in Austin or call 507-437-8247, extension 4.