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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