Single Family Housing 502 Direct

The Single Family 502 Direct Program creates the option for low and very low income individuals to purchase or build a modest home in eligible rural areas, with 100% financing and a possible interest rate subsidy as low as 1%.

You must be unable to obtain the credit you need from other resources at reasonable rates and terms.

Qualifying Criteria:

The house you want to purchase or build must be located in an eligible rural area. To verify the property's eligibility, please use our online mapping system.

The Household income must be at or below 80% of the HUD median income limit for household size in the county where you wish to live. Monthly income must be enough to pay for the house payment, taxes and insurance, as well as other monthly debts.

The credit history for loan applicants must indicate satisfactory repayment for debts, as well as no unpaid collections or liens. Additionally, a satisfactory history for paying rent is also required.

Loan Terms:

The loan can be for 33 or 38 years depending on whether the household income is low or very low, based on HUD limits. Interest rates can be subsidized down to an interest rate of 1%, depending on income, household size and other factors.

In order to determine qualification as well as the maximum loan amount and loan terms, please complete the prequalification worksheet; sign the authorization form to do a preliminary credit check; and then fax or mail to the appropriate field office.

Download the Prequalification Worksheet in PDF format.

Download the Credit Authorization Form RD3550-1 in PDF format.