USDA Rural Development's housing programs provide homeownership, renovation and repair opportunities in rural areas to income-eligible individuals and families. Financing is also available to support the development and rental of affordable multi-family housing in rural towns and communities.

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Single-Family Housing Programs

What is the difference between a "direct" and a "guaranteed" home loan?
A direct loan is a loan directly from the government. Qualified applicants work with a local Rural Development specialist throughout the application process. A guaranteed loan is a loan made by a traditional lender (bank, mortgage lender, credit union) and "guaranteed" by the government against default. Qualified applicants work with the lender throughout the application process.

How do I know if I qualify for either a direct or guaranteed loan?
Visit the Income and Property Eligibility page . Here is a brief overview: For both programs, the home must be modest in size and located in an eligible rural area of 20,000 people or fewer. Direct loans are intended for qualified low and very-low income homebuyers unable to obtain financing elsewhere. Guaranteed loans are intended for moderate-income homebuyers and are adminstered through traditional lending institutions such as banks.

What are interest rates?
For direct loans, a payment subsidy is avalaible that could bring the interest rate as low as one percent for qualified applicants. Typically, monthly payments are between 22 and 26 percent of an applicant's income. For guaranteed loans, the interest rate and terms are negotiated between the lender and borrower.

How do I know if I qualify with my income?
Visit the Income and Property Eligibility page . Or contact a local Rural Development office.

I am already a homeowner. Do you have programs for home repairs?
Yes. For qualified homeowners, we have home repair loans for up to $20,000 with a 1 percent interest rate and a 20-year repayment term. Homeowners over the age of 62 qualify for home repair grants up to $7,500. Grants must be used to remove health and safety hazards. Visit the Income and Property Eligibility page to see if your home qualifies, or contact a local Rural Development office.

Is there a list of approved manufactured home dealer contractors for the direct program?
Yes. View the list .