The U.S. Department of Agriculture (USDA) Rural Housing Service Section 502 Direct Loan Program, which helps relatively low-income households get safe and affordable financing through direct lending, is reaching capacity in terms of loans it will be funding for the 2016 fiscal year which ends September 30, 2016. If a homebuyer is interested in using the Direct Loan Program, they should move quickly to secure that financing.
However, interested homebuyers can consider another option. The USDA Guaranteed loan program is another avenue through which rural Americans can finance the purchase of a home. USDA guarantees 90% of a loan facilitated through approved lenders for low to moderate income rural families that face difficulty in obtaining traditional financing.
If you have any questions about either the Direct or Guaranteed Loan Program, please contact your USDA state office to determine an applicant’s eligibility and availability of funds.