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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:

  • 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 September 1, 2023, the current interest rate for Single Family Housing Direct home loans is 4.125% 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:


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.

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
stephen.nnodim@usda.gov (530) 792-5830


Debbie Morris, State Loan Coordinator (South) 
debbie.morris@usda.gov | (530) 792-5820

Debbie Boyd, State Loan Coordinator (North) HPG Coordinator 
debbie.boyd2@usda.gov | (530) 217-6243

Maggie Slater, CA State Self Help Coordinator
magdalena.slater@usda.gov | (760) 347-3675 x122

Roger Gardner, Loan Specialist
rodger.gardner@usda.gov | (530) 792-5804

Paula Galvan, Loan Specialist
paula.galvan@usda.gov  | (530) 792-5823

Rosie Jaurige, Loan Technician
rosie.jaurige@usda.gov | (530) 792-5809

Eduardo Saavedra, Loan Assistant
eduardo.savaadera@usda.gov | (530) 792-5826

Guaranteed loans are centralized across the state

Email address: SFHGLPONE@usda.gov

Direct loan and grant contacts

Glenn, Lassen, Modoc, Plumas, Shasta, Siskiyou, Tehama & Trinity Counties

Roger Horton, Area Coordinator  
roger.horton@usda.gov | (530) 691-5849

Andrea Harbert, Loan Specialist
andrea.harbert@usda.gov | (530) 691-5854

Alameda, Del Norte, Humboldt, Monterey, San Benito, San Francisco, San Mateo, Santa Clara & Santa Cruz Counties
Sylvia Barbosa, Area Coordinator
sylvia.barbosa@usda.gov | (831) 975-7738

Lupe Benavides, Loan Specialist
lupe.benavides@usda.gov | (831) 975-7738

Amador, Alpine, Butte, Calaveras, Colusa, Contra Costa, El Dorado, Lake, Marin, Mendocino, Mono, Napa, Nevada, Placer, Sacramento, Sierra, Solano, Sonoma, Sutter, Yolo & Yuba Counties

Peter Paganucci, Loan Specialist
peter.paganucci@usda.gov | (530) 217-6240

Nicole Roldan-Leben, Area Coordinator
nicole.roldan@usda.gov | (530) 693-3162

Barinder Kaur, Loan Specialist
barinder.kaur@usda.gov | (530) 693-3174

Sumanjeet Dhanju, Loan Specialist
Sumanjeet.dhanju@usda.gov | (530) 217-6252

Wanda Thompson, Loan Technician
wanda.thompson@usda.gov | (530) 217-6249

Fresno, Madera, Mariposa, Merced, San Joaquin, Stanislaus & Tuolumne Counties

Liz Vannata, Area Coordinator
liz.vannata@usda.gov |(559) 490-8030

Doris Geisenheimer, Loan Specialist
doris.geisenheimer@usda.gov | (209) 205-4968

Alma Jaquez, Loan Specialist
alma.jaquez@usda.gov | 209-205-4970

Rebecca Didway, Loan Specialist
rebecca.didway@usda.gov | (559) 754-3158

Inyo, Kern, Kings, San Luis Obispo, Santa Barbara, Tulare & Ventura Counties

John Nicolet, Loan Specialist
john.nicolet@usda.gov | 661-281-2743

Stacy Lopez, Area Coordinator
stacy.lopez@usda.gov | (559) 754-3154

Fariha Harooni, Loan Specialist
fariha.harooni@usda.gov | (661) 281-2754

Imperial, San Diego, Los Angeles, Orange, Riverside & San Bernardino Counties
Patty Coronado, Area Coordinator
patty.coronado@usda.gov | (760) 355-2208 x109

Teon Gore, Loan Specialist
teon.gore@usda.gov | (951) 902-6562

Carrie McLeod, Loan Specialist
carrie.mcleod@usda.gov | (760) 347-3675x120

La Tasha Kendrix, Loan Specialist
latasha.kendrix@usda.gov | (951) 902-6564

Alejandro Macias, Loan Specialist
alejandro.macias@usda.gov | (760) 355-2208 x105

Maurice Brundidge, Loan Specialist
maurice.brundidge1@usda.gov | (760)355-2208 X100