Single-Family Housing Programs

A home financed by Rural Development.

Our Single-Family Housing Programs provide homeownership opportunities to low- and moderate-income individuals and families living in rural areas. We offer direct home loans and home loan guarantees through approved lenders. We also have programs to finance home repairs and remove health and safety hazards.


Lenders

Click here for file status updates and other news on the Guaranteed Single-Family Housing Program.

Minnesota Highlights

2012 Investments
Guaranteed Loans $443,778,478
Direct Loans $15,659,932
Home Repair Loans and Grants $1,598,500

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 and guaranteed programs?
Yes. You can view the list here.


Where do I find Home Buyer Education providers?
Completion of the Home Buyer Education course is required for applicants who utilize the Direct SFH Program. For those utilizing the Guaranteed SFH Program, it is highly recommended. You can view the list of Home Buyer Education providers in Minnesota by clicking here.