Who can apply for this program?
A number of factors are considered when determining eligibility for Single Family Direct Home Loans. At a minimum, applicants must have an adjusted income that is at or below the applicable low-income limit for the area in which they wish to buy a house. They must also demonstrate a willingness and ability to repay debt.
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Helpful Requirement Details:
• The interest rate is fixed, and based on current market rates at loan approval or closing, whichever is lower.
• When modified by payment assistance, the monthly mortgage payment can be reduced to as low as an effective 1 percent interest rate.
• The payback period is 33 years (38 years for very-low-income applicants who can’t afford a 33-year loan term).
• Down payments are not typically required, but applicants with assets higher than the asset limit can be required to use a portion of those assets.
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For More Information Visit the RD.USDA.GOV WEBPAGE