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Description
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USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas. It assists applicants in purchasing a home in eligible rural areas by providing payment assistance to increase repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
Eligibility requirements
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must meet income eligibility limits for the area where they wish to buy a house, and they must demonstrate a willingness and ability to repay debt. In addition, applicants must: - Be without decent, safe and sanitary housing;
- Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet;
- Agree to occupy the property as your primary residence;
- Have the legal capacity to incur a loan obligation;
- Meet citizenship or eligible noncitizen requirements;
- Not be suspended or debarred from participation in federal programs.
How may funds be used?
Loan funds may be used to help low-income individuals or households purchase homes in rural areas (generally, rural areas with a population less than 35,000 are eligible). Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
How much may I borrow?
The maximum loan amount an applicant may qualify for will depend on the applicant’s repayment ability. The applicant’s ability to repay a loan considers various factors such as income, debts, assets and the amount of payment assistance applicants may be eligible to receive.
What is the interest rate and payback period? - Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower (effective October 1, 2018, the current interest rate for Single Family Housing Direct Home Loans is 3.75% for low and very low income borrowers);
- Interest rate when modified by payment assistance, can be as low as 1%;
- Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term.
Call or go online for more detailed information.
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Coverage Area
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Counties served by Smithfield office: Johnston, Harnett, Sampson, Wake, Wilson. (Other local offices serve other counties).
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Physical Address
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Smithfield Sub Area Office 2736 Hwy 210, Suite D
Smithfield NC
27577 United States
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View map of this location
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Hours Of Operation
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Office hours: Monday-Friday, 8 AM to 5 PM
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Physical Location Description
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Office is located in the Johnston County Agricultural Center
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Mailing Address
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Smithfield Sub Area Office 2736 Hwy 210, Suite D
Smithfield NC
27577 United States
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Business
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(919) 934-7156
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Fax Number
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(844) 325-6830
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Main Email Address
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[email protected]
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