GARDINER -- Like most parents, Dana and Connie Pelletier wanted to provide their two kids with a good home and a big backyard.

During the summer, that dream came true, thanks to some help from family and a government low-interest loan and grant.

But their spotless new home on Libby Hill Road isn't just for Patrick, 6, and Alissa, 8.

It's also for Dana's late parents, Armand and Bertha Pelletier, who wanted their son to have a home for his family on the piece of property where they raised their family of nine.

"My mom and dad would've loved this," Dana Pelletier said inside the new kitchen. "This was their dream for me, to be able to have a home and this land for my family.

"It's our dream home. But it's for them, too."

About six years ago, the Pelletiers moved into an older home on the same 2.75-acre site where their new home now sits. It was built in the 1950s by hand by Dana's dad one section at a time because there wasn't enough money to build it all at once.

By the time the Pelletiers took over the home, however, the roof was leaking, mold was evident and structural problems were developing, likely due to the lack of any foundation.

"We knew the house had problems, but we didn't realize how bad it was," Dana Pelletier said. "There were times we thought it would collapse on us."

Contractors they talked to said it would cost more to repair the home than it would to build new. Problem was, with Dana Pelletier, on disability due to an injury on the job at Bath Iron Works, they couldn't afford that.

People suggested the U.S. Department of Agriculture's Rural Development program might be able to help. He applied and, about two months later, learned they were approved for a low-income subsidized home loan program with low-interest financing -- about 1 percent.

"It was a privilege to be part of their dream," said Janice M. Stroud, area director for USDA Rural Development.

The agriculture department provided about $100,000 through the loan.

But that's not the only assistance the Pelletiers got. They also received $32,000 from Kennebec Valley Community Action Program.

The KVCAP money was left over in a fund meant to help low-income people replace their homes. Since it wasn't likely the agency would be able to replace somebody's home for just $32,000, Kim Moulton, loan coordinator in KVCAP's Waterville office, said they were glad to team up with the USDA and provide the money to help with the Pelletiers' home.

"Celine (Skinner, area single family housing specialist for USDA), called us and asked, 'Do you have any money?' " said Ed Stevens, real estate manager in KVCAP's Waterville office.

After struggling to find a builder willing to work with the agencies involved, the Pelletiers hired Rodrigue Builders of Augusta. Tommy Goodall, Pelletier's brother-in-law, tore down the old house and the Pelletiers stayed with other family members during construction.

"We're so grateful for what everyone has done for us," Connie Pelletier said Wednesday as Alissa and Patrick ran around the home, playing.

KVCAP and USDA Rural Development officials signed an agreement at the gathering to work closely on other housing projects in the future, too.

"These are our miracle workers," Dana Pelletier said as Stevens, Skinner, Stroud, Moulton, and Rodrigue Builders workers Melanie Geneseo and Allen Wing gathered in the kitchen.

Keith Edwards -- 621-5647

kedwards@centralmaine.com