Direct Home Loan Program

The Direct Program offers individuals with low or very low income the opportunity to purchase or repair their home at affordable monthly payments.

Purchase Program Rural Development's Purchase Program offers low income individuals the opportunity to maximize their loan potential by offering subsidized interest rates as low as 1 percent.

Loan funds can be used to build or purchase existing homes in rural areas. Click here for more information.

Repair Program

Rural Development's Repair Program offers very low income individuals an interest rate as low as 1%. Loan funds can be used to improve, modernize, remove health & safety hazards, and remodel for handicap accessibility. Grant funds are limited and available to very low income individuals who are 62 years or older and have no repayment ability (other restrictions may apply.) Click here for more information.

 

 Eligibility Criteria

  • Does not currently own adequate housing.
  • Unable to obtain financing from conventional lenders.
  • U.S. Citizen or qualified alien status.
  • Occupy dwelling as primary residence.
  • Acceptable credit history.
  • Show adequate repayment ability.
  • Must have adjusted household income that does not exceed low income limits established for county.
  • Must have legal capacity to incur the loan obligation.
  • Other restrictions may apply.
  • Must be in rural area (click here for Michigan ineligible area maps)

Property Requirements

  • Structurally and functionally adequate, in good repair.
  • Market value must not exceed area loan limit for county.
  • Must be located in the designated Rural Areas.
  • On-site water, sewage systems that comply with zoning and state/health standards.
  • Prohibited features include: Income producing property, farm structures, in-ground pools, manufactured homes, excess acreage, value of property must not exceeds 30%.

Other restrictions may apply for:

(click each link for more information):

How to apply: (click each link for more information)

Check the Income Limit Guidelines

Contact your local Area Office

Submit a Prequalification

Property Eligibility Web site

Direct 504 Program Brochure

Direct 502 Program Brochure

Other Services (The list provided below is not an endorsement by Rural Development.)

Homeownership Education Providers

Click here for the manufactured housing dealer directory

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NOTE: The Consolidated and Further Continuing Appropriations Act of 2013 signed into law on March 26 extends the eligibility of communities that were eligible for housing programs administered by the Rural Housing Service (Single Family and Multi Family Housing Programs) on September 30, 2012 to September 30, 2013. For all other Rural Development programs, USDA will use the 2010 Census data to determine eligibility for rural areas beginning on March 27, 2013.

System for Award Management (sam.gov)

SAM is the new streamlined reporting system for USDA staff and other federal agencies. The consolidated system simplifies the process for loan and grant recipients and makes project tracking more transparent.

SAM replaces the following systems: Central Contractor Registration (CCR), Federal Agency Registration (FedReg), Online Representations and Certifications Application (ORCA), and the Excluded Parties List.

More information is at http://sam.gov and frequently Asked Questions/Quick Start

The web addresses for legacy systems will also automatically redirect users to sam.gov.