USDA Housing Direct Home Loan
Resource Name: USDA Single Family Housing Direct Home Loan
Description:
Home loan assistance for low-income residents. Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. No down payment required.
What is the interest rate and payback period?
Effective April 1, 2025, the current interest rate for Single Family Housing Direct home loans is 5.00% for low-income and very low-income borrowers.
Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
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
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