Single Family Housing Direct Home Loans in California



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:

  • 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.

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

What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible.  Visit the USDA Income and Property Eligibility website for complete details.

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 Eligibility 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 eligibility determination 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 eligibility 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?

  • 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 Webinars and Handouts:

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.

Interest Rates

Effective October 1, 2020 the current interest rate for Single Family Housing Direct Home Loans is 2.50% for low and very low-income borrowers.

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

There are currently no events scheduled.

State Office:

Main Phone Number: (530) 792-5800 extension 1

USDA Rural Development
Attn: Single Family Housing
430 G St, Agency 4169
Davis, CA 95616

Stephen Nnodim, Single Family Housing Program Director
(530) 792-5830

Debbie Morris, SFH State Coordinator
(530) 792-5820

Tamye Binning, SFH Technician
(530) 792-5823

Kallii Lane, SFH Technician
(530) 792-5802

Rosie Jaurige, SFH Technician
(530) 792-5809

Local Contacts:

Serving Glenn, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama, Trinity counties:
Cheri Skudlarek, Area Coordinator
(530) 691-5851

Ed Amen, Area Specialist
(530) 691-5850

Andrea Harbert, Area Specialist
(530) 691-5854

John Strauch, Area Specialist
(530) 233-4137

Serving Amador, Alpine, Butte, Calaveras, Colusa, Contra Costa, El Dorado, Mono, Nevada, Placer, Sacramento, Sierra, Solano, Sutter, Yolo and Yuba counties:
Nicole Roldan-Leben, Area Coordinator
(530) 693-3162

Barinder Kaur, Area Specialist
(530) 693-3174

Thomas Thompson, Area Specialist
(530) 792-5812

Wanda Thompson, Area Technician
(530) 217-6249

Serving Alameda, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa Clara Santa Cruz and Sonoma counties:
Violet Gomes, Area Coordinator
(831) 975-7739

Lupe Benavides, Area Specialist
(831) 975-7738

Roger Gardner, Area Specialist
(530) 792-5804

Serving Fresno, Madera, Mariposa, Merced, San Joaquin, Stanislaus and Tuolumne counties:
Liz Vannata, Area Coordinator
(559) 490-8030

Alba Lazaro, Area Specialist
(559) 490-8028

Alma Jaquez, Area Specialist
(209) 205-4970

Serving Inyo, Kern, Kings, San Luis Obispo, Santa Barbara Tulare and Ventura Counties
Stacy Lopez, Area Coordinator
(559) 754-3154 

Rebecca Didway, Area Specialist
(559) 754-3158

Armando Aparicio, Area Specialist
(661) 281-2743

Arogeanae Brown, Area Specialist
(661) 281-2737

Zulema Rodriguez, Area Technician
(805) 863-9936

Serving Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego counties:
Patty Coronado, Area Coordinator
(760) 355-2208 ext. 109

Roberto Palomino, Area Specialist
(760) 355-2208 ext. 101

Maggie Slater, Area Specialist
(760) 347-3675 ext. 122

Maria Elena Desamito, Area Specialist
(760) 347-3675 ext. 126

Latasha Kendrix, Area Specialist
(951) 902-6564

Teon Gore Area Specialist
(951) 902-6562