Nanakuli Housing Corporation is certified by the United States Department of Agriculture (USDA) to prepare loan applications for their Single Family Housing Direct Home Loans.
Single Family Housing Direct Home Loans
What does this program do?
The Section 502 Direct Loan Program helps low- and very-low-income applicants to 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.
Who may apply for this program? Multiple factors are considered when determining an applicant’s 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 where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.
Applicants must also:
Be without decent, safe and sanitary housing Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet Agree to occupy the property as their primary residence Have the legal capacity to incur a loan obligation Meet citizenship or eligible noncitizen requirements Not be suspended or debarred from participation in federal programs
Properties financed with direct loan funds must:
Generally be 2,000 square feet or less Not have market value in excess of the applicable area loan limit Not have in-ground swimming pools Not be designed for income producing activities Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.
Is there a deadline to apply?
Applications for this program are accepted through your local RD office year round.
How long does an application take? Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.
What governs this program?
The Housing Act of 1949 as amended, 7 CFR, Part 3550, HB-1-3550 - Direct Single Family Housing Loans Field Office Handbook