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USDA Direct Single Family Loan Program (Section 502)
US Dept of Agriculture (USDA)
USDA Direct Single Family Loan Program (Section 502) is a
loan available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. Nationwide, but only in rural areas with less than 10,000 population and some communities up to 20,000 population.
Property Eligibility Requirements
Generally, areas and communities with less than 10,000 population.
The sales price cannot exceed $
Allowable property types:
Single family, Duplex, Condo, Manufactured housing
Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes.
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accurate and up to date information on housing programs displayed
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For more information about this and other homebuyer programs please
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