South Texas has been Xochitl Zarate’s home since the late 80s. Born in the U.S. but raised in a Mexican orphanage run by U.S. citizens, Zarate moved to the states to attend school during junior high. She’s been living in rural Hidalgo County, just outside of Mission, since she purchased a mobile home following a divorce in 2000. For many rural residents, homes like hers are one of the few pathways to stable and affordable housing in the region.

“It was a repo,” she said. “I couldn’t afford a home or a new mobile home, so I’ve been working on little details every year.”

Chipping away at small upgrades and repairs had served her well for more than 20 years. But when a hurricane made landfall in the region in 2023, things dramatically changed for her. 

“The way it fell, I’m glad I’m alive,” Zarate said. “If the tree would have fallen directly on the home, I don’t think I would have survived it.”

Winds from the storm toppled a 30-year-old tree, sending its massive branches onto the home’s metal roof. The damage was substantial. Openings in the roof, allowing water to leak in and trickle down the walls, along with destroying her water heater and wrecking a bedroom. Her wood floor was irreparably soaked. Without repairs, the home she had spent decades maintaining was suddenly at risk of becoming unlivable.

Zarate was physically unscathed, but her home was ruined. The financial burden from the destruction the storm left in its wake created new challenges for her. Still, Zarate was happy to be alive and set to work trying to repair the damage.

“I tried to fix all of the things with the little money the insurance gave me, but it just wasn’t enough,” she said. 

Zarate considered a loan, but she didn’t have great credit and that made it difficult to find an option with payments she could realistically afford. She needed help, like the kind she facilitated every day while working as a rehab coordinator for Affordable Homes of South Texas Inc (AHSTI). AHSTI is a community-based non-profit that primarily works to improve living conditions for elderly and disabled individuals, by providing affordable housing options as well as home repair services. 

While working there she came across the exact opportunity she needed. Communities Unlimited, a nonprofit economic development organization funded in part by USDA Rural Development grants, offered a Home Improvement Loan Program that fit her exact needs.

In partnership with the Federal Home Loan Bank of Dallas, the program offers loans of up to $2,500 for South Texas residents and $3,500 for Arkansas residents. Loans are offered at 10% over two-year terms, and eligibility for applicants doesn’t rely on collateral or a strong credit history. For homeowners who may not qualify for traditional bank loans, small programs like this can make the difference between keeping a home livable and facing costly displacement.

Communities Unlimited launched the program in early 2025, following a successful pilot in South Texas, in an effort to meet a need for rural families who aren’t able to access risk-free, affordable financing for essential home repairs. The program has since expanded to Arkansas, covering more than 30 counties in the state. 

Programs like this are becoming increasingly important as rural communities face growing risks from severe storms, flooding, wildfires, and other natural disasters. When catastrophe strikes, families often need to make repairs quickly to keep their homes safe and livable. 

The average age of owner-occupied homes in the U.S., which is about 40 years old, is also a factor. As new construction has declined in rural areas, an increased number of aging homes are in need of repairs. But many rural homeowners struggle to access small, affordable loans through traditional banks. 

By offering flexible financing for essential repairs, Communities Unlimited helps fill that gap. The Home Improvement Loan Program in particular gives people a practical way to fix roofs, repair floors, and restore heating and cooling systems so families can stay in their homes and communities can remain stable and strong.

“I applied right away and it was very easy,” Zarate said. “The priority was replacing my floor.”

Once she was approved for the loan, she began working with a local contractor she knew through her work with Affordable Homes of South Texas, keeping the repair work and spending in the local economy. Her $2,500 loan allowed her to hire the contractor, purchase supplies and begin the repairs she desperately needed to complete.

She now has new flooring, fresh paint on the walls and a new toilet. And her payment on the loan isn’t giving her added stress. 

“It was peace of mind,” she said. “Having a payment like that was like, ‘Relax. You got the material and the labor and your home is being taken care of.’”