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USDA Section 502 Direct Loan Packaging

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The certified packaging process assists with marketing and to produce faster reveiws and approvals.


This program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s 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.


Loan Program Overview


  • No down payment required, if funds are not available.
  • Payment assistance may reduce effective interest rate.
  • Income is reviewed at least every 2 years.
  • Some closing costs may be included, up to the appraised value.
  • Private mortgage insurance (PMI) is not required.
  • Base interest rate is 3.75%

Loan terms:
Manufactured homes- 30 years
Standard- 33 years
Very-low income- up to 38 years


What is an eligible area?     Is my income eligible?     How much can I borrow?    Rural Development Website   Downloadable Flyer   Intake Form