Section 502 Direct Rural Housing Loan Program

With a section 502 direct loan these families can access affordable safe mortgages with interest rates starting at just 1 percent over a 38 year term.

Section 502 direct rural housing loan program. It addresses the requirements of section 502 h of the housing act of 1949 as amended and includes policies regarding originating servicing holding and liquidating sfhglp loans. The section 502 loan guarantee program administered by the u s. The section 502 direct loan program offers mortgages for low income homebuyers in rural areas.

The lender for the direct program is the rural housing service. Section 502 is the single most cost effective federal housing program. This section breaks down additional differences between the two loan programs.

On average section 502 loans costs 3 000 over its entire lifetime. Section 502 guaranteed and direct loan programs are as follows. While both programs offer the main benefit of usda loans 0 down financing there are significant differences between the two primarily because each program is meant for a specific situation.

Department of agriculture usda. Section 502 direct is operated by the u s. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time.

Also known as the section 502 direct loan program this program assists low and very low income applicants obtain decent safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant s repayment ability. 1 for more. The lender for section 502 guaranteed loans is a private savings and loan institution bank or mortgage company which also handles all the loan servicing.

Usda direct vs usda guranteed. Department of agriculture s rural development housing and community facilities programs office rd. Rural development handles the servicing.