Low Income Single Family Housing Loans from USDA Rural Development
Are there home loans for rural low income families?
Yes! Section 502 Loan Programs from the USDA provides pathways for home ownership and aims to improve the quality of life in rural communities. The USDA provides two programs for Single Family Housing: the Single Family Housing Direct Home Loan and the Single Family Housing Guaranteed Loan Program. Both of these programs assists low- to moderate-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing financial assistance. Below are the programs and the differences between them.
For Native American tribe, band, group, nation, or Alaskan Native villages seeking housing grants check out direct grants for housing and suitable living from HUD.
Single Family Housing Direct Home loan program
Click for the Direct Home Loan Fact Sheet
What does this program do?
This program provides payment assistance to low- and very-low-income applicants who are without decent, safe and sanitary housing.
What is payment assistance?
Payment assistance is a type of subsidy that reduces the mortgage payment for a short time.
At a minimum, applicants must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
How may funds be used?
Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Single Family Housing Guaranteed Loan Program
Click for the Guaranteed Home Loan Fact Sheet
What does this program do?
This program assists with up to 100% financing for approved low- and moderate-income households to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. No money down for applicants who qualify.
Applicant’s household income must not exceed 115 percent of the median household income of the area.
How may funds be used?
Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area.
What is an eligible rural area?
Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.