To assist lower-income rural families to obtain decent, safe, and sanitary dwellings and related facilities. Subsidized funds are available only for low and very-low income applicants. Non-subsidized funds are available to low and very-low income borrowers who do not qualify for payment assistance and to moderate-income borrowers only for transfers by assumption.

Assistance is available throughout the year by means of National quarterly allocations of funds to each Vermont and NH Area Office. Funds are usually released to borrowers as a lump sum for purchase or repair of a dwelling, or in multiple advances for construction. Dwellings financed must be modest in cost (not to exceed the HUD mortgage limit or state published limits) and located in a place that is rural in character and does not exceed 10,000 population or in a place whereby population exceeds 10,000 but is not in excess of 20,000, provided the place is not in a Metropolitan Statistical Area (MSA). Loans are made at the interest rate(s) specified by Rural Development and are repaid over a period of up to 33 years.

• Must be without adequate resources to provide housing on his/her own account, or related facilities.
• Must be unable to secure the necessary credit from other sources at prevailing terms and conditions.
• Must be a citizen of the U.S. or reside in the U.S.
• Must have adequate and dependable income to meet financial obligations and family living expenses. Ratios for very-low income families are 29%/41% and for low and moderate income families are 33%/41%.
• Must have a credit history that reflects a reasonable willingness and ability to meet financial obligations when due.

• Construction, repair or purchase of housing
• Weatherization
• To buy a site on which to place a dwelling for the applicant's own use

Applicants may make application at the local Rural Development office serving the county where the dwelling is or will be located.