Rural Home Loans (USDA)

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 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.

Applicants must:

  • 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 28422 910-253-0699 910-253-4299
Blue Springs-Hoke County CDC, Inc. 114 N Main Street; Suite C Radford NC 28376 888-991-7595 910-904-5948
Durham Regional Financial Center 2634 Durham Chapel Hill Blvd Durham NC 27707 919-688-3381 919-287-2457 GLYNDOLA@DRFCENTER.ORG
Greenville Housing Development Corporation 1103 Broad Street Greenville, NC 27834-3952 252-329-4000 252-329-4026
NC Community Housing Consulting 3620 Legion Road Suite 204 Hope Mills, NC 28348 910-568-2318 910-868-5849
AMEZ Housing CDC 619 Nixon Street, Wilmington, NC 28401 910-815-3826 910-763-5141
Sampson County CDC 9936 Hobbton Highway Clinton, NC 28328 910-594-1277
Consumer Education Services (CESI) Housing 3700 Barrett Drive Raleigh, NC 27609 866-635-6414 
Dynamic Group Services 3208 Sunset Avenue, Rocky Mount, NC 27804 252-258-5176 
Choanoke Area Development Association 120 Sessoms Drive, Rich Square, NC 27869 252-539-4155 252-539-2048
Centre For Homeownership & EDC 105 Corbin Street Suite 103 , Hillsborough, NC 27828 919-241-4718 
Prosperity Unlimited, Inc. 1660 Garnet Street, Kannapolis, NC 28083 704-933-7405
Sandhills Community Action Program, Inc. 340 Commerce Ave, Suite 20, Southern Pine, NC 910-947-5675
Cleveland County CDC 823 West Warren Street, Shelby, NC 28150 704-480-7701 704-480-0744
Habitat for Humanity of Lincoln County 809 E. Sycamore Street, Lincolnton, NC 704-748-1800 x 104 704-240-9651
Olive Hill CEDC 309 Colombo St. SW Suite 110, Valdese NC 28690 828-522-4051 x 304 828-522-4071
Wilson Community Improvement Association, Inc. 504 E. Green Street, Wilson, NC 27893 252-243-4855 252-243-2945
River City CDC 501 E. Main Street, Elizabeth City, NC 27909 252-331-2925 
Telamon Corporation (Brandon Bell) 5560 Munford Rd Suite 201, Raleigh NC 27612 919-239-8157 919-851-9044
Raleigh Area Development Authority (Lekesha Shaw) 4030 Wake Forest Road Suite 205, Raleigh, NC 27609 919-208-2381
Habitat for Humanity of Lincoln Co (Alex Scarborough) 809 E. Sycamore Street/PO Box 1062 Lincolnton, NC 28093 704-748-1800 ext. 104
Cape Fear Regional CDC 508 Compton St, Wilmington, NC 28401 919-762-7555
Monroe Union County CDC 349 E. Franklin St, Monroe, NC 28111 704-283-8804
The Housing Assistance Corporation 602 Kanuga Rd, Hendersonville, NC 28739 828-692-4744 828-692-3009
American Indian Mothers, INC (AIMI) 120 S. Main St, Red Springs, NC 28377 910-843-9911