What does this program do? Who may apply for this program? Applicants must: Properties financed with direct loan funds must: 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. Pleaseselect your state from the dropdown menu above. What is aneligible rural area? How may funds be used? How much may I borrow? Using the Single Family Housing DirectSelf- Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying. The tool will provide a preliminaryreview after a potential applicant enters information on their general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance. Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development (RD) regardless of the self-assessment results. Upon receipt of a complete application, RD will determine the applicant’s eligibility using verified information and the applicant’s maximum loan amount based on their repayment ability and the area loan limit for the county in which the property is located. What is the interest rate and payback period? How much down payment is required? Is there a deadline to apply? How long does an application take? What governs this program? Why does USDA Rural Development do this? NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.
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.
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 the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
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.
No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets.
Applications for this program are accepted through your local RD office year round.
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.
USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.
Single Family Housing Direct Home Loans in New Jersey (2024)
Top Articles
Taxable Income vs. Nontaxable Income: What You Should Know
bluebird bio (BLUE) Stock Forecast, Price Targets and Analysts Predictions - TipRanks.com
Britain's Rishi Sunak struggles with missteps while trying to lift Conservatives ahead of elections
Toothless dog named Wild Thang just won World’s Ugliest Dog contest
Twoplustwo Borgata
Mia Khalifa Sparks Controversy with Latest Hindi News
Antibody trial launched to address enterovirus threat - VUMC News
Ouija Board aka Weegie Board
Tfb Holdings Kyle
¿Cómo elegir el mejor software de investigación de mercado para sus objetivos comerciales?
Tony Lo Bianco, actor who played tough guys and a famed mayor, dies at 87
Michael Mosley obituary: Medical doctor who became a TV diet guru
Latest Posts
Article information
Author: Gregorio Kreiger
Last Updated:
Views: 5811
Rating: 4.7 / 5 (77 voted)
Reviews: 84% of readers found this page helpful
Author information
Name: Gregorio Kreiger
Birthday: 1994-12-18
Address: 89212 Tracey Ramp, Sunside, MT 08453-0951
Phone: +9014805370218
Job: Customer Designer
Hobby: Mountain biking, Orienteering, Hiking, Sewing, Backpacking, Mushroom hunting, Backpacking
Introduction: My name is Gregorio Kreiger, I am a tender, brainy, enthusiastic, combative, agreeable, gentle, gentle person who loves writing and wants to share my knowledge and understanding with you.