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The Rural Housing Service (RHS) has available funds in its Section 502 Direct Loan Program that must be used by September 30, 2015. As of August 13, 2015, RHS has enough to fund approximately 2,500 additional home loans. Direct loans are available to households in rural areas whose adjusted income does not exceed 80 percent of the area median. There is no down payment requirement and the interest rate can be as low as one percent. These applicants generally demonstrate a willingness and ability to pay their debt obligations but lack sufficient repayment ability for a Section 502 guaranteed loan. Loan funds may be used to purchase existing homes, to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
If you are interested in learning more about the program and taking advantage of the funds available through the end of September 2015, contact your state office to determine an applicant’s eligibility.
Section 502 Direct Loan Program Information
Section 502 Direct Loan Program: Best Kept Rural Housing Secret