Direct Homeownership Loan Program

Provides loans in rural areas that assist very-low and low-income applicants to purchase, construct, repair or rehabilitate, or relocate a single family home. For manufactured housing, only new construction is permitted.


  • Eligible applicants include individuals or families, who do not presently own adequate housing.
  • Applicants must have an income that is below the low income limit for the area.
  • Applicants must be unable to obtain a loan from other conventional lenders.
  • Must have a credit history that indicates a willingness to meet obligations as they become due.
  • Eligible areas are rural communities with a population of 20,000 or less, and the communities of Columbus and Norfolk. Are you eligible?

Loan Terms and Conditions:

  • Loans are closed at the agency's current full note interest rate.
  • Payment assistance (subsidy) is available to lower the required monthly mortgage payment of the borrower. Payment assistance is reviewed annually and is subject to recapture.
  • The term of the loan is 33 years (38 years in some cases).  Manufactured housing carries a 30 year term.
  • No down payment is required, the loan may include typical closing costs up to the appraised value of the property.
  • The maximum cost/loan limits are revised annually (see below) or contact your local USDA Rural Development office for current figures.
  • The loans must be adequately secured by note and deed of trust.
  • Applicants who are first time homebuyers must complete a homebuyer education course.

Click Here to Pre-Qualify for a Single Family Housing Direct Loan