- Loans
- Statewide
Summary
The USDA Rural Development Section 502 Direct Homeownership Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas who truly have no other way to make affordable homeownership a reality. This program offers mortgages for low-income homebuyers in rural areas and is operated by the U.S. Department of Agriculture's Rural Development Housing and Community Facilities Programs office (RD). There are several variations of the basic Section 502 direct loan program, which include mutual self-help housing, condominium housing, community land trusts, manufactured housing, and the rural housing disaster loan program. A separate Section 502 guaranteed loan program provides government guarantees of loans made by banks or others. Eligibility for a direct loan can be determined by visiting the USDA Income and Property Eligibility website or contacting your local Rural Development office.
Eligibility Requirements
- The home being purchased, built, repaired, or renovated must be located in a rural area as designated by the USDA.
- The applicant(s) must have a household income that is at or below the low-income or very low-income limit for their area. Income limits vary by location and household size.
- The applicant(s) must be U.S. citizens or legal permanent residents.
- The applicant(s) must plan to occupy the home being purchased, built, repaired, or renovated as their primary residence.
- The applicant(s) must have a credit score of at least 640, or demonstrate a willingness and ability to repay the loan.
- The applicant(s) must also comply with all program requirements and guidelines, which may include submission of a complete application, payment of any required application fees, and submission of all required documentation.
- It's important to note that meeting the above requirements does not guarantee acceptance into the program, as funding is limited and subject to availability. Additionally, the USDA uses a multi-step application process to determine eligibility for the program, which may include verification of income, creditworthiness, and other factors.
Contact Information
USDA Rural Development
1221 College Park Drive, Suite 200
Dover, DE 19904
Phone: 302-857-3580