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Single Family Housing Direct Home Loans in Florida

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What does this program do? 
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. 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?
A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, 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 and they must demonstrate a willingness and ability to repay debt.

Applicants must:

  • 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 your 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:

  • Not have market value in excess of the applicable area loan limit
  • 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.

Applicants must meet income eligibility for a direct loan.  Please select your state from the dropdown menu above.

What is an eligible rural area?
Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.

How may funds be used?
Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

How much may I borrow?

Using the Single Family Housing Direct Self- Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying.  The tool will provide a preliminary review after a potential applicant enters information on their general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance.  Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development (RD) regardless of the self-assessment results.  Upon receipt of a complete application, RD will determine the applicant’s eligibility using verified information and the applicant’s maximum loan amount based on their repayment ability and the area loan limit for the county in which the property is located. 

What is the interest rate and payback period?

  • Effective March 1, 2024, the current interest rate for Single Family Housing Direct home loans is 4.5% for low-income and very low-income borrowers.
  • Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
  • Interest rate when modified by payment assistance, can be as low as 1%
  • Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term

How much down payment is required?
No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets.

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?

Why does USDA Rural Development do this?
USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

NOTE:  Please select your state using the "Select your location" menu above.  By doing so, any state specific forms and resources will be shown above this note. Please visit the Eligibility Site to find out if your income is within the direct loan limits.  Also, the home to be built or purchased must be located in an eligible rural area.

Applicant Resources:

Borrower Resources:

Training:

Certified Loan Application Packager Resources:

Packagers are encouraged to routinely visit the Direct Loan Application Packagers page for information and resources specific to packaging single-family housing direct loans.

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

Most loans and grants are originated and/or serviced in the Area Office. Please contact the Area Office that services your County or Town. See our: Florida County Map. Please contact the USVI St. Croix Office for all of the USVI.

CRESTVIEW AREA OFFICE
Jeffrey Archer, Area Director
3070 Adora Teal Way, Suite C, Crestview, FL 32539
Work phone: 850-682-2416
Business cell: 850-333-2031
Fax: 855-473-8755
Counties served: Escambia, Holmes, Okaloosa, Santa Rosa and Walton.

MARIANNA AREA OFFICE
Loria Phillips, Area Director
2741 Pennsylvania Avenue, Suite 5, Marianna, FL 32448
Work phone: 850-526-2610
Business cell: 850-317-6572
Fax: 855-474-6969
Counties served: Bay, Calhoun, Franklin, Gadsden, Gulf, Jackson, Jefferson, Leon, Liberty, Wakulla and Washington.

LAKE CITY AREA OFFICE
Bruni Robles, Area Director
971 W Duval St, Suite 190, Lake City, FL 32055
Work phone: 386-719-5590
Business cell: 386-365-9576
Fax: 855-474-6983
Counties served: Baker, Bradford, Clay, Columbia, Duval, Hamilton, Lafayette, Madison, Nassau, Suwannee, St. Johns, Taylor and Union.

OCALA AREA OFFICE
Stephanie Hodges, Area Director
2441 NE 3rd Street, Suite 204-1, Ocala, FL 34470
Work phone: 352-732-7534
Business cell: 352-843-0042
Fax: 855-474-6990
Counties served: Alachua, Citrus, Dixie, Flagler, Gilchrist, Lake, Levy, Marion, Putnam, Seminole, Sumter and Volusia.

CHAMPIONS GATE AREA OFFICE
Angela Smith, Area Director 
8390 Champions Gate Blvd, Suite 210, Champions Gate, FL 33896
Work phone: 863-420-4833
Fax: 855-474-8230
Counties served: Brevard, Hernando, Hillsborough, Indian River, Orange, Osceola, Pasco, Pinellas and Polk.

ROYAL PALM BEACH AREA OFFICE **(see Sub Office information)
Ada Rivera, Area Director 
420 South State Road 7, Suite 166, Royal Palm Beach, FL 33414
Work phone: 561-792-2727
Fax: 855-475-4827

**N. Ft. Myers (Sub Office of Royal Palm Beach)
Ada Rivera, Area Director 
3434 Hancock Bridge Pkwy., Suite 209-A, N. Ft. Myers, FL 33903
Work phone: 239-997-7331
Fax: 855-475-8043
Counties served from Royal Palm Beach and North Fort Myers: Broward, Dade, Glades, Hendry, Highlands, Martin, Monroe, Okeechobee, Palm Beach, St. Lucie, Charlotte, Collier, DeSoto, Hardee, Lee, Manatee and Sarasota.

ST. CROIX U.S. VIRGIN ISLANDS AREA OFFICE
Kimme Bryce, Area Director
4401 Sion Farm, Ste. #2, Christiansted, St. Croix, VI 00820
Work phone: 340-773-9146
Business cell: 340-201-4211
Fax: 855-475-6940
Locations served: St. Croix, St. John and St. Thomas.