The Fund is excited to now offer, direct to potential homebuyers, the USDA 502 Direct Loan Program.
This program helps low- and very-low-income applicants in federally-determined rural areas of the state obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. This payment assistance is a type of subsidy that reduces the mortgage payment. The amount of assistance is determined by the adjusted family income.
A number of factors are considered when determining an applicant’s eligibility for this loan. 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.
This is a zero down payment loan.
Interest Rates - Effective Jan. 1, 2017, the current interest rate for USDA 502 Direct Loan Program is 3.25% for low and very low income borrowers.
For specific information about this program, we ask that you call our Single Family Loan Origination Department at 1-800-933-8511.