USDA 502-Direct Loans
Helping people find their forever home they deserve.
MHO is now a certified loan packager for USDA 502 Direct Loans. This loan product helps eligible low- and very-low-income applicants obtain decent, safe, and sanitary housing in eligible rural areas through interest rate subsidies, allowing higher loan amounts or better affordability. This loan provides 100% financing and can include closing costs and home repair costs worked into the loan if the applicant is eligible. Interest subsidy assistance and eligible loan amounts vary based on income, debt, and other factors.
Eligible Applicants
Applicants interested in obtaining a direct loan 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. Loan applicants must demonstrate a willingness and ability to repay debt. Credit history and additional requirements apply.
Eligible Properties
- Generally, homes with 2,000 square feet or less
- Does not have market value above the applicable area loan limit
- Does not have in-ground swimming pools
- Property size below 5 acres and not sub-dividable
- Not 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 when the borrower is no longer living in the dwelling.
For more information on how to apply, please contact Angi Welch, MHO Loan Fund Officer at angi@mtnhousing.org or by calling 828-254-4030 ext. 127.