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.
  • Homes must be located in rural areas. All communities in Nebraska are eligible for housing programs with the exceptions of Fremont, Grand Island, Hastings, Kearney, Lincoln, North Platte, Omaha, and South Sioux City/Dakota City. 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