Strafford County provides zero interest security deposit loans

Residents of Dover, Rochester, Somersworth and greater Strafford County have a sweet alternative to high interest loans. If you are lower income, you may have access to zero percent interest loans to use toward the security deposit of your next home or apartment.

You may have considered applying for a loan through a finance company. However, these expensive loans carry interest rates of 25% or higher. Fortunately, this is one option that you can avoid.

Thanks to a grant from the New Hampshire Bureau of Homeless and Housing Services, you may be able to borrow the money to put towards a security deposit. It is not a grant to you, rather you must repay the loan as you are able. Still, an interest-free loan is a great way to advance the funds to your new landlord without putting yourself in a difficult financial situation.

This is how it works. First you must apply for assistance through the Community Action Partnership of Strafford County. An intake specialist will help you fill out the application and obtain the necessary documentation to prove eligibility. Once you are approved, the agency provides a guarantee to your prospective landlord to cover the security deposit requirement. If you cause any damages to the property, the landlord will receive the necessary funds to cover those damages, up to the amount of the security deposit requirement.

You have to demonstrate that you can afford the normal monthly rent. Also, you will need a lease of at least 6 months to participate. The best part is that you can repay the loan within 6 to 24 months at no interest. Imagine getting 2 years to repay the loan yet not having to pay any interest. That would mean a payment as low as $41.67 on a $1,000 loan. That saves about 12 bucks a month in interest, amounting to $280 in savings. Larger loans will save you even more, depending on your security deposit requirements.

While rental loans are not always a good idea due to the high cost and risk of being overwhelmed by debt payments, the security deposit loans provided through Community Action Partnership of Strafford County are a great option. To apply, contact an intake specialist today at 603-516-8139. They will make an appointment for you to come in to speak with a case manager. They will also help you gather the necessary documentation to prove that you qualify, such as pay stubs, forms for your landlord to complete and social security numbers for all family members living with you. Finally, they will help you complete a budget to ensure that it is a feasible option for you.