Louisiana

Section 502 Direct Single Family Housing Loans

PREQUALIFICATION
USDA Rural Development provides financing for the purchase of a modest home for low income applicants in rural areas (http://eligibility.sc.egov/eligibility/welcomeAction.do) through the Section 502 Direct Single Family Housing Loan program. 

The loan may be used to purchase existing housing, purchase a building site and construct a dwelling, or purchase a new home on property the applicant owns.  The term of the loan is typically 33 years at an interest rate established by the Agency.  Payment Assistance, a means of reducing monthly notes, may also be available to qualified applicants.   

TO BE ELIGIBLE FOR A SECTION 502 LOAN, THE APPLICANT MUST MEET THE FOLLOWING REQUIREMENTS:

• Have an adjusted family income that is at or below the low income limits as follows:  http://eligibility.sc.egov/eligibility/welcomeAction.do
   

• Adequate and dependable income from stable employment, Retirement, Social Security, SSI,  VA, AFDC, Child Support, etc.
   

• Must demonstrate adequate repayment ability. 
   

• Must have a credit history that indicates a reasonable ability and willingness to meet debts.
   

• Must be unable to obtain a loan from conventional lending sources on terms they can afford.
   

• Must not presently own an adequate dwelling
   

• Must personally occupy the dwelling to be purchased on a permanent basis.
   

• Must be a U. S. citizen or a non-citizen who qualifies as a legal alien.
   

• Must have the legal capacity to incur the loan obligation and cannot be suspended or debarred from participation in Federal programs.

Forms
Prequalification Worksheet
This worksheet is in fillable pdf format.  For a Word version of this form, click here.

Authorization to Release Information
Print this form and sign and submit it with your completed Prequalification Worksheet.

Submit Forms

To begin the loan application process, mail or fax a completed “PREQUALIFICATION WORKSHEET” and signed Form RD 3550-1, “AUTHORIZATION TO RELEASE INFORMATION” for each applicant and co-applicant to the Area Office of USDA Rural Development that serves the parish you wish to live in.

Offices
List of USDA Rural Development Area Offices in Louisiana