USDA Loan Products
Is your organization a 501C3 non-profit, State Housing Finance Agency or Tribal Housing Authority and interested in packaging 502 Direct Loans? If so contact Barbara Blackston at email@example.com for more information. uniform-residential-loan-application-rd410-4. Submit form using the Contact Us page.
Rural Home Loans (Direct Program)
What does this program do?
Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
Who may apply for this program?
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below 80% of the County Area Median Income for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
- Agree to occupy the property as your primary residence
- Have the legal capacity to incur a loan obligation
- Meet citizenship or eligible non-citizen requirements
- Not be suspended or debarred from participation in federal programs
Properties financed with direct loan funds must:
- Be modest in size for the area
- Not have market value in excess of the applicable area loan limit
- Not have in-ground swimming pools
- Not be designed for income producing activities
Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.
Applicants must meet income eligibility for a direct loan. Please contact a Qualified Non-Profit in your area to ask for additional details about eligibility requirements. *See qualified Nonprofit list below*
What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible. Visit the USDA Income and Property eligibility website for complete details.
How may funds be used?
Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
How much may I borrow?
The maximum loan amount an applicant may qualify for will depend on the applicant’s repayment ability. The
applicant’s ability to repay a loan considers various factors such as income, debts, assets and the amount of payment assistance applicants may be eligible to receive. Regardless of repayment ability, applicants may never borrow more than the area’s loan limit (plus certain costs allowed to be financed) for the county in which the property is located.
What is the interest rate and payback period?
- Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower.
- Interest rate when modified by payment assistance can be as low as 1%.
- Up to 33 year payback period – 38 year payback period for very low income applicants who can’t afford the
33 year loan term.
How much down payment is required?
No down payment is typically required. Applicants with assets higher than the asset limits may be required to
use a portion of those assets.
Is there a deadline to apply?
Applications for this program are accepted through a qualified nonprofit agency year round.
How long does an application take?
Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.
Are you ready to get started? Please call 252-243-4855 for an agency in your area.
|Qualified Non-Profit Name||Address||Phone||Fax||Website||Email Address|
|Brunswick Housing Opportunities, Inc.||3470 Old Ocean Hwy Bolivia NC firstname.lastname@example.org|
|Blue Springs-Hoke County CDC, Inc.||114 N Main Street; Suite C Radford NC email@example.com|
|Durham Regional Financial Center||2634 Durham Chapel Hill Blvd Durham NC 27707||919-688-3381||919-287-2457||www.drfcenter.org||GLYNDOLA@DRFCENTER.ORG|
|Greenville Housing Development Corporation||1103 Broad Street Greenville, NC firstname.lastname@example.org|
|NC Community Housing Consulting||3620 Legion Road Suite 204 Hope Mills, NC email@example.com|
|AMEZ Housing CDC||619 Nixon Street, Wilmington, NC firstname.lastname@example.org|
|Sampson County CDC||9936 Hobbton Highway Clinton, NC email@example.com|
|Consumer Education Services (CESI) Housing||3700 Barrett Drive Raleigh, NC firstname.lastname@example.org|
|Dynamic Group Services||3208 Sunset Avenue, Rocky Mount, NC email@example.com|
|Choanoke Area Development Association||120 Sessoms Drive, Rich Square, NC firstname.lastname@example.org|
|Centre For Homeownership & EDC||105 Corbin Street Suite 103 , Hillsborough, NC email@example.com|
|Prosperity Unlimited, Inc.||1660 Garnet Street, Kannapolis, NC firstname.lastname@example.org|
|Sandhills Community Action Program, Inc.||340 Commerce Ave, Suite 20, Southern Pine, NCemail@example.com|
|Cleveland County CDC||823 West Warren Street, Shelby, NC firstname.lastname@example.org|
|Habitat for Humanity of Lincoln County||809 E. Sycamore Street, Lincolnton, NC||704-748-1800 x 104||704-240-9651||www.habitatlcnc.org||AScarborough@habitatlcnc.org|
|Olive Hill CEDC||309 Colombo St. SW Suite 110, Valdese NC 28690||828-522-4051 x 304||828-522-4071||OliveHcedc@live.com|
|Wilson Community Improvement Association, Inc.||504 E. Green Street, Wilson, NC email@example.com|
|River City CDC||501 E. Main Street, Elizabeth City, NC firstname.lastname@example.org|
|Telamon Corporation (Brandon Bell)||5560 Munford Rd Suite 201, Raleigh NC email@example.com|
|Raleigh Area Development Authority (Lekesha Shaw)||4030 Wake Forest Road Suite 205, Raleigh, NC 27609||919-208-2381||Lekesha.Shaw@RADA-NC.org|
|Habitat for Humanity of Lincoln Co (Alex Scarborough)||809 E. Sycamore Street/PO Box 1062 Lincolnton, NC 28093||704-748-1800 ext. 104||AScarborough@habittlcnc.org|
|Cape Fear Regional CDC||508 Compton St, Wilmington, NC firstname.lastname@example.org|
|Monroe Union County CDC||349 E. Franklin St, Monroe, NC email@example.com|
|The Housing Assistance Corporation||602 Kanuga Rd, Hendersonville, NC firstname.lastname@example.org|
|American Indian Mothers, INC (AIMI)||120 S. Main St, Red Springs, NC email@example.com|