US Department of Agriculture Rural Development Housing Programs

Single Family Housing Repair Loans and Grants (Section 504 Program)

Provides loans to very-low income homeowners to repair, improve or modernize their homes and grants to elderly very-low income homeowners to remove health and safety hazards. The maximum loan is $20,000 and can be repaid over 20 years with a fixed interest rate of 1%. A real estate mortgage is required for loans of $7,500 or more. For grant consideration, the applicant must be 62 or older and not able to repay a repair loan. Grants have a lifetime limit of $7,500 but can be combined with a loan for up to $27,500 in assistance. Grants must be repaid if the property is sold in less than 3 years. For additional information:

Direct and Guaranteed Single Family Housing Loans (Section 502 Program)

Provides low- and moderate-income households the opportunity to purchase or build modest, decent, safe and sanitary dwellings in eligible rural areas. These two loan programs provide home purchase financing but can also support qualifying housing rehabilitation. Household income determines if applicants qualify for a loan directly from USDA Rural Development or from a participating financial institution.

Section 502 Direct Loans

Available to low income households as defined as 80% of the HUD median income limit. No down payment is required, and USDA can finance up to 100% of the appraised value. The standard term for a Section 502 Direct Loan is 33 years. Loans are made at a fixed rate established by the Agency; payment subsidies are available to qualifying borrowers to reduce loan payments. Private mortgage insurance (PMI) is not required. For additional information, please visit:

Guaranteed Rural Housing Loan

This program assists approved lenders in providing low- and moderate-income households the opportunity to purchase or build modest homes in rural areas. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loan to value financing to eligible homebuyers. These loans are made at a competitive fixed rate of interest and are repaid over 30 years. Private mortgage insurance (PMI) is not required, but a guaranteed fee is required at closing, which can be financed above the appraised value. For additional information, please visit:

Housing Preservation Grants (Section 533 Program)

Provides grants to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low and very low-income rural citizens. Eligible applicants include most state and local government agencies, nonprofit organizations and federally recognized tribes. The grantee must have the necessary background and experience with proven ability to perform the responsibility of repair rehabilitation of low-income housing. Funds can be used by the grantee to provide grants or low interest loans to income qualifying rural homeowners or to rental property owners if they agree to make units available to low income families. Areas to be served have a population limit of 20,000. For additional information, please visit:

For all USDA Rural Development Program, State and Local Contact Information, please visit: