Very Low to Moderate Income Housing Loans and Loan Guarantees
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To assist very low, low-income, and moderate-income households to obtain modest, decent, safe, and sanitary housing for use as a permanent residence in rural areas.
Eligibility
Eligible Applicants
- Homeowner
Applicants must have very low-, low- or moderate incomes. Families must be able to afford housing payments, including principal, interest, taxes, and insurance and have an acceptable credit history. Please visit Agency eligibility website at: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
How to Apply
Application Procedure
For direct loans, application is made at the Rural Development field office serving the county where the dwelling is or will be located. For guaranteed loans, application is made to a participating private lender found online here-https://www.rd.usda.gov/resources/lenders
Award Procedure
Rural Development field offices have authority to approve direct loan requests. Please visit the website for direct loan State Contact at- https://www.rd.usda.gov/about-rd/state-offices for a State Office listing. An approved guaranteed lenders can be found at -https://www.rd.usda.gov/resources/lenders
For direct loans, processing times vary by State. For guarantees, a decision is required within 3 days of loan package submission by the approved lender.
Program details & compliance
Description
To assist very low, low-income, and moderate-income households to obtain modest, decent, safe, and sanitary housing for use as a permanent residence in rural areas.
Mission Categories
Primary: Rural Housing
Other categories:
Homebuying, HomeownershipHome ImprovementConstruction Rehabilitation
Use of Funds
Allowed Uses
Direct and Guaranteed loans may be used to buy, build, or improve the applicant's permanent residence. New manufactured homes may be financed when they are on a permanent site and meet certain other requirements. Under very limited circumstances, homes may be re-financed.
Restrictions
Eligible applicants must fall under income limits. Dwellings financed must be modest, decent, safe, and sanitary. The value of a home financed with a direct loan may not exceed the area loan limit. The property must be located in an eligible rural area. Assistance is available in the States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana's, and the Trust Territories of the Pacific Islands.
Required Documentation
Applicants, or lenders in the Guaranteed program, will need to submit evidence of income, debts, and other information on the application and property (e.g. plans, specifications, and cost estimates).
Matching Requirements
This program has no matching requirements. A basic formula is used to allocate program funds to various States.