USDA Rural Housing Loans Direct Programs Interest Rates

Effective Dec. 1, 2020, the current interest rate for Single Family Housing Direct Home Loans is 2.5 percent for low and very low-income borrowers. 

the current interest rate for Single Family Housing Direct Home Loans

The USDA 502 Direct Loan Program helps low- and very-low-income applicants in federally-determined rural areas of the state obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. This payment assistance is a type of subsidy that reduces the mortgage payment. The amount of assistance is determined by the adjusted family income.

A number of factors are considered when determining an applicant’s eligibility for this loan. At a minimum, applicants interested in obtaining a direct loan 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.

This is a zero down payment loan.

Program Fact Sheet

Program Forms & Resources

Click here for the current rate for the USDA 502 Direct Loan Program

Single Family USDA Rural Housing Direct Loan and Grant Programs In Kentucky 2019 Shutdown Government

Source: Single Family Housing Direct Loan and Grant Programs

 

February 1, 2019

Single Family Housing Direct Loan and Grant Programs

We now have an enacted Fiscal Year (FY) 2019 continuing resolution that provides short-term funding for the U.S. Department of Agriculture (USDA), Rural Development. As we begin an orderly start-up of our loan and grant activities for FY 2019, we thank you for your patience and support during the period in which our services were unavailable.

 

We are taking a proactive and customer-focused approach to prioritizing our activities so that we can resume normal operations as quickly as possible. As Rural Development stakeholders, we will be working closely with you to achieve this goal.

 

On behalf of the USDA Single Family Housing Direct Programs, we appreciate your continued support and patience.

 

1.  Certificates of Eligibility: USDA will issue a new Certificate of Eligibility (COE) to all

applicants under the Single Family Housing Direct Loan Program who had a valid COE

on December 21, 2018. This includes any COE that was under an allowable extension on

this date. The new certificates, which will be issued by the field staff as soon as possible,

will allow the applicants additional time to locate a home within their qualification

amount and submit the needed documentation to the agency now that normal operations

have been resumed.

 

2 . Self-Help Housing: USDA staff are currently working on a 2019 Funding Plan for the

Section 523 Self-Help Housing Program pending full year appropriations. Operating

grantees may continue to work with eligible applicants, process applications, and resume

construction activities delayed by the lapse in funding. Technical & Management

Assistance (T&MA) Contractors are authorized to resume services as well.

 

3.  Repair Loans and Grants: Repair loan and grant funds are available for processing,

approval, and closings. Applicants with immediate health and safety hazards such as

inoperable heating systems will receive priority.

 

 4.  New 502 Direct Loans: Based on appropriations received thus far in Fiscal Year 2019,

which are applicable through February 15, 2019, USDA has had severely restricted levels

of funding available for new 502 Direct loans. USDA does not anticipate being able to

obligate new 502 Direct loans until the next Fiscal Year 2019 appropriation bill is passed.

 

Thank you for your support of the USDA Single Family Housing Direct Loan and Grant Programs. We look forward to serving you and the needs of rural communities.

 

Roger Glendenning
Deputy Administrator
Single Family Housing

 

For Program Information

Single Family Housing Direct Loans

Single Family Housing Repair Loans and Grants

Mutual Self Help Housing Technical Assistance Grants