Very Low to Moderate Income Housing Loans


To assist very low, low-income, and moderate-income households to obtain modest, decent, safe, and sanitary housing for use as a permanent residence in rural areas.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Rural Housing Service, Department of Agriculture
Type(s) of Assistance Offered
E - Direct Loans; F - Guaranteed/Insured Loans
Program Accomplishments
Not applicable.
Housing Act of 1949
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
Applicants must have very low-, low- or moderate incomes. Very low-income is defined as below 50 percent of the area median income (AMI); low-income is between 50 and 80 percent of AMI; moderate income is below 115 percent of AMI. Families must be without adequate housing, but able to afford the housing payments, including principal, interest, taxes, and insurance (PITI). Qualifying repayment ratios are 29 percent for PITI to 41 percent for total debt. In addition, applicants must be unable to obtain credit elsewhere, yet have an acceptable credit history.
Beneficiary Eligibility
Applicants must meet eligibility requirements. Guaranteed Loan Low and Moderale income eligible.
Applicants may need to submit evidence of inability to obtain credit elsewhere, verification of income, debts, and other information on the application; plans, specifications, and cost estimates.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. For direct loans, application is made at the Rural Development field office serving the county where the dwelling is or will be located. For guaranteed loans, application is made to a participating private lender.
Award Procedure
Rural Development field offices have authority to approve most Direct loan requests. Processing of guaranteed loans varies in each State. Consult your local telephone directory under U.S. Department of Agriculture for a Rural Development field office listing or visit the website for a State Office listing. If no backlog exists, decisions on direct loan applications are made within 30 to 60 days. Requests for guarantee loans are acted upon in 3 days of receipt of the lender's request for guarantee.
Not applicable.
Approval/Disapproval Decision Time
For direct loans, from 30 to 60 days subject to availability of funds, from the time the application is filed if no backlog of applications exists. A 'pre-qualification' may be provided to potential direct loan applicants upon call or visit to a Rural Development office, though results are not binding. For guarantees, a decision is required within 3 days of loan package submission by the approved lender.
Agency regulations providing customers with the rights for an informal review, mediation or alternative dispute resolution (ADR), or appeal to the National Appeals Division (NAD) are contained in 7 CFR Part 3550. NAD regulations are found at 7 CFR Part 11. Requests for an informal review, mediation and ADR must be received within 30 days from the date of the adverse decision. Requests for an appeal to NAD must be received within 30 days of receipt of the adverse decision.
Applicants may reapply at any time.
How are proposals selected?
Not applicable.
How may assistance be used?
Direct and guaranteed loans may be used to buy, build, or improve the applicant's permanent residence. New manufactured homes may be financed when they are on a permanent site, purchased from an approved dealer or contractor, and meet certain other requirements. Under very limited circumstances, homes may be re-financed with direct loans. Dwellings financed must be modest, decent, safe, and sanitary. The value of a home financed with a direct loan may not exceed the area limit. The property must be located in an eligible rural area. Assistance is available in the States, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Northern Mariana's, and the Trust Territories of the Pacific Islands.
What are the requirements after being awarded this opportunity?
Not applicable.
Not applicable.
Not applicable.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching is voluntary. This program has no matching requirements. A basic formula is used to allocate program funds to various States. The criteria used in the basic formula include the States percentage of the National: Number of rural occupied substandard units, rural population, rural population in places of less than 2,500 population, number of rural households between 50 and 80 percent of the area median income, and number of rural households below 50 percent of the area median income. The data source for each of these criteria is based on the latest census data available.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
This assistance is available throughout the year by means of quarterly allocations. Funds may be disbursed at loan closing or deposited in a supervised bank account for purchase of a building site, and purchase or repair of a dwelling, or in multiple advances for construction. For guaranteed loans, funds are disbursed after all work is complete. Applications for direct loans far exceed available funding. There is generally a waiting list for direct loan funding. Method of awarding/releasing assistance: Quarterly.
Who do I contact about this opportunity?
Regional or Local Office
Consult your local telephone directory under U.S. Department of Agriculture for a Rural Development field office listing or visit the website for a State Office listing.
Headquarters Office
Myron L. Wooden,
1400 Independence Avenue, SW
Washington, DC 20250 US
Phone: (202) 720-1532
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 18$16,826,420,078.00; FY 19 est $15,281,388,436.00; FY 20 est $24,000,000,000.00; FY 17$19,279,916,900.00; FY 16$16,357,336,854.00; FY 15$18,623,238,191.00; - Fiscal Year 2020 figures are based on the President's proposed budget.(Direct Loans) FY 18$1,100,796,383.00; FY 19 est $1,000,000,000.00; FY 20 est $0.00; FY 17$999,991,163.00; FY 16$958,259,532.00; FY 15$899,339,107.00; - Fiscal Year 2020 figures are based on the President's proposed budget.
Range and Average of Financial Assistance
FY 18 Average: 502 Direct Loans ($152,909) Guaranteed Loans ($145,225) FY 19 Average: 502 Direct Loans ($160,918) Guaranteed Loans ($143,472) FY 19 are estimates. Loans in high cost areas may be higher.
Regulations, Guidelines and Literature
7 CFR Part 3550 "Direct Single Family Housing Loans and Grants." For guaranteed loans, 7-CFR Part 3555 "Guaranteed Rural Housing Program"
Examples of Funded Projects
Not applicable.


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