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U.S. Department of Agriculture Rural Housing

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Program
Objective
Applicant
Uses
Population
Loan/Grant
Terms/Conditions

Single Family Home Ownership Direct Loans

Safe, well-built, affordable homes for rural Americans.
Families and individuals.
Buy, build, improve, repair, or rehabilitate rural home as the applicant’s permanent residence.
Rural areas with populations of 10,000 or less and, under certain conditions, towns and cities between 10,000 and 20,000 population.
Direct loan.
Up to 100% of market value or cost. Loan term of 33/38 years. Applicant may be eligible for payment assistance (subsidy) on the loan.
Single Family Home Ownership Direct Repair Loans and Grant
To help very-low-income applicants remove health and safety hazards or repair their homes.
Families and individuals who currently own their home.
Repair/replace roof, winterizing,
purchase or repair of heating
system, structural repair,
water/sewage connect fees, etc.

Direct loan and grant.

Loans up to $20,000 up to 20 years at 1 percent.Grants available to very-low-income
applicants 62 years or older unable to pay 1 percent loan.
Single Family Home Ownership Guaranteed Loans
To assist moderate income applicants(s)/household(s) in buying their homes by
guaranteeing loans made
by private lenders.
Families and individuals.
Purchase new or existing home and refinance existing Rural Development guaranteed loan.
Same as above.
Loan guarantee.
30-year, fixed rate. Interest rate is negotiated between lender and borrower. Loans up to 100 percent of market value plus the amount of the guarantee fee being financed.
Mutual Self-Help
Home Ownership
Loans
Individual homes built by
a group of applicants, with
construction guidance of a
non-profit organization.
Families and individuals.
Individual applications for each participating individual/family.
Construction of a new home, in
part, by the applicant under
supervision.
Same as above.

Direct loan.

Individuals/families receive a direct loan from Rural Development. Participating nonprofit housing organization receive grants for project supervision.
Mutual Self-Help
Housing Grants
Assist lower income
families in building their
own homes.
Non-profits and public bodies.
Technical assistance to assist small groups offamilies to build each other’s
homes.
Same as above.

Grant.

Grant agreement.
Rental Housing for
Families and Elderly
Direct Loans and
Loan Guarantees
Safe, well-built, affordable
rental housing for very-low-income individuals
and families.
Individuals, trusts, associations, limited partnerships, for-profit and non-profit entities, tribes, public bodies.
New construction or substantial
rehabilitation of rental housing.
Same as above.

Direct loan or
loan guarantee.

Up to 100 percent of total development cost (non-profits); 97 percent (for-profits); 95 percent (for-profits with Low-Income Housing Tax Credits). 30-year term with up to 50 year amortization.
Housing
Preservation Grants
Repair and rehabilitate
housing owned or
occupied by very-low- and
low-income rural families.
Public bodies and non-profit organizations.
Operation of a program which
finances repair and rehabilitation
activities for single family and
small rental properties.
Same as above.

Grant.
Grant agreement.

Community Facilities
Programs
Improve, develop, or finance essential
community facilities for
rural communities.
Public bodies, non-profit
organizations, and Indian
tribes.
Build or improve essential community facilities to include public safety, fire and rescue,
telecommunications, schools,
libraries, hospitals, other healthcare facilities, etc.
City, town, or unincorporated area of not more than 20,000 population. Facilities must primarily serve rural areas.
Direct loan or
loan guarantee, grant.
Up to 100 percent of market value. Term for useful life of the facility or equipment, the state statute, or 40 years. Maximum grant 75 percent of project cost. Grant eligibility based on income, population, and need.
Farm Labor Housing
Safe, well-built affordable
rental housing for farm
workers.
Individuals, public and private non-profit organizations.
New construction or substantial
rehabilitation of rental housing.
N/A
Direct loan and grant.
Up to 102 percent of total development cost. Up to 33 years to repay at 1%