Applications for this program are originated in the field office serving your county. Select the Contacts tab above for the NC field office list.
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 November 1, 2024, the current interest rate for Single Family Housing Direct home loans is 4.375% 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?
- The Housing Act of 1949 as amended, 7 CFR, Part 3550,
- HB-1-3550 - Direct Single Family Housing Loans Field Office Handbook
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:
- Applicant Orientation Guide video
- Form RD 3550-23, Applicant Orientation Guide - English version
- Form RD 3550-23, Guía de Orientación del Solicitante - Spanish version
- Rural Development State Office Contact Information
Borrower Resources:
- New Homeowners Information Guide - English version
- Guía de información para nuevos propietarios - Spanish version
- Streamlined Assist Refinance Loan
Training:
- Program Overview
- Pre-qualification and Application Processes
- Determining Income:
- Credit Requirements
- eForms Electronic Application Process (Video, User Guide)
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.
NC Rural Development Area Office Map
State Office Contacts
USDA Rural Development
4405 Bland Road
Raleigh, North Carolina 27609
Phone: 919-873-2015
Reginald Speight, State Director
Rural Housing Service, Single-Family Housing
William Kenney, Director
919-873-2041
Email: william.kenney@usda.gov
Rural Housing Service, Multi-Family Housing
Byron Waters, Director
919-873-2055
Email: byron.waters@usda.gov
Rural Business and Cooperative Services
Bruce Pleasant, Director
919-873-2031
Email: bruce.pleasant@usda.gov
Community Programs and Program Support
Garland Burnette, Director
919-873-2063
Email: garland.burnette@usda.gov
Rural Partners Network
George Vital, North Carolina Lead
919-873-2034
Email: george.vital@usda.gov
Public Information
Robert Kerns, Public Information Officer
919-873-2033
Email: robert.kerns2@usda.gov
ASHEVILLE AREA OFFICE
Jody Lovelace, Area Director
160 Zillicoa Street, Suite #2
Asheville, NC 28801
828-254-0916
844-325-6823 Fax
Email: jody.lovelace@usda.gov
Counties Served: All Area One Counties
JEFFERSON SUB AREA OFFICE
134 Law Enforcement Dr., Suite 201
Jefferson, NC 28640
336-246-2885
844-325-6823 Fax
Email: Joyce.Latham@usda.gov
Counties Served: Ashe, Watauga, Alleghany, Wilkes, Caldwell
FRANKLIN LOCAL OFFICE
195 Thomas Heights Road
Franklin, NC 28734
828-524-3175
844-325-6823 Fax
Email: rebecca.pinto@usda.gov
Counties Served: Macon, Haywood, Jackson, Cherokee, Clay, Graham, Swain
SPRUCE PINE LOCAL OFFICE
11943 S. 226 Hwy Suite D
Spruce Pine, NC 28777
828-765-0889
844-325-6823 Fax
Email: susan.roland@usda.gov
Counties Served: Mitchell, Yancey, Madison, Avery, Buncombe, Henderson, Transylvania
SHELBY AREA OFFICE
Jody Lovelace, Area Director
844 Wallace Grove Road
Shelby, NC 28150
704-471-0235
844-325-6850 Fax
Email: kevin.oliver@usda.gov
Counties Served: Cleveland, Gaston, McDowell, Polk, Rutherford, Mecklenburg
WINSTON-SALEM SUB AREA OFFICE
Forsyth County Agriculture Building Room 102
1450 Fairchild Drive
for SFH inquiries, please contact the Shelby Service Center at 704-471-0235 ext 4
DOBSON LOCAL OFFICE
220 Cooper Street
PO Box 66
Dobson, NC 27017
336-386-8751
844-325-6850 Fax
Email: debbie.dickerson@usda.gov
Counties Served: Surry, Yadkin, Stokes
LUMBERTON AREA OFFICE
Larry Sampson, Area Director
PO Box 7426
440-C Caton Road
Lumberton, NC 28360
910-887-3762
844-325-6830 Fax
Email: larry.sampson@usda.gov
Counties Served: Bladen, Columbus, Cumberland, Hoke, Lee, Robeson, Scotland
SMITHFIELD SUB AREA OFFICE
Johnston County Agric Service Bldg
2736 Hwy 210
Smithfield, NC 27577
919-300-4866
844-325-6830 Fax
Email: kristi.wilson@usda.gov
Counties Served: Johnston, Harnett, Sampson, Wake, Wilson
BOLIVIA LOCAL OFFICE
10 Referendum Drive
PO Box 108
Bolivia, NC 28422
910-253-4448
844-325-6830 Fax
Email: paula.thrush@usda.gov
Counties Served: Brunswick, New Hanover, Pender
ASHEBORO AREA OFFICE
Kelley Woodley, Area Director
847 Curry Drive, Suite 104
Asheboro, NC 27205
336-629-4449
844-325-6822 Fax
Email: sha.stallings-morgan@usda.gov
Counties Served: Alamance, Cabarrus, Caswell, Chatham, Davidson, Guilford, Moore, Randolph, Rockingham, Rowan, Stanly,
SANFORD LOCAL AREA OFFICE
2416 Tramway Road
Ernest & Ruby McSwain Extension Educ & Ag Center
Sanford, NC 27332
919-775-3407
844-325-6830 Fax
Email: margarita.marble@usda.gov
Counties Served:
ROCKINGHAM LOCAL OFFICE
123 Caroline Street
Rockingham, NC 28379
910-895-3950
844-325-6822 Fax
Email: pamela.edwards@usda.gov
Counties Served: Richmond, Montgomery, Anson, Union
HENDERSON AREA OFFICE
Shirlene Alexander, Area Director
853 S. Beckford Drive, Suite A
Henderson, NC 27536
252-438-3134 ext. 4
844-325-6826 Fax
Email: kim.hunt@usda.gov
Counties Served: Vance, Granville, Franklin, Warren, Orange, Durham, Person,
WINTON SUB AREA OFFICE
County Office Building
305 W. Tryon Street
P.O. Box 8
Winton, NC 27986
252-358-7836
844-325-6826 Fax
Email: travis.lassiter@usda.gov
Counties Served: Hertford, Gates, Chowan, Pasquotank, Perquimans, Camden, Currituck, Bertie, Northampton
HALIFAX LOCAL OFFICE
Halifax County Agriculture Complex
359 Ferrell Lane
P.O. Box 7
Halifax, NC 27839
252-583-7171 ext. 4
844-325-6826 Fax
Email: shirlene.alexander@usda.gov
Counties Served: Halifax, Nash
KINSTON AREA OFFICE
Aaron Gaskins, Area Director
2044-C Hwy 11/55 South
PO Box 6189
Kinston, NC 28501-0189
252-526-9799
844-325-6827 Fax
Email: stephanie.hardison@usda.gov
Counties Served: Lenoir, Jones, Craven, Pamlico, Onslow, Carteret, Wayne, Greene, Duplin
GREENVILLE SUB AREA OFFICE
Pitt County Office Complex
403 Government Circle, Suite 3
Greenville, NC 27834
252-752-2035/252-752-2880
844-325-6827 Fax
Email: richard.hines@usda.gov
Counties Served: Pitt, Martin, Washington, Tyrrell, Dare, Beaufort, Hyde, Edgecombe