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Single Family Housing Direct Home Loans in North Carolina


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.

For existing Section 502 direct and 504 borrowers who have received a payment moratorium related to COVID-19. The American Rescue Plan (ARP) Act of 2021 appropriated additional funds for Section 502 direct and 504 loans, to remain available until September 30, 2023.  The focus will be to refinance existing Section 502 direct and Section 504 borrowers who have received a payment moratorium related to COVID-19.  Beginning May 17, 2021, the Agency will accept applications from existing Section 502 direct and Section 504 loan borrowers, to refinance outstanding loans which have been in an approved COVID-19 moratorium. Details are available in the ARP Program Fact Sheet.  Additional information for these borrowers, including a standardized application package, is available at https://pubmai.sc.egov.usda.gov/.

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 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 August 1, 2022, the current interest rate for Single Family Housing Direct home loans is 3.25% 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.


Pam Hysong, Area Director

160 Zillicoa Street, Suite #2

Asheville, NC 28801

828-254-0916Image removed.

844-325-6823Image removed. Fax

Email: linda.whitmire@nc.usda.gov

Counties Served: Buncombe, Henderson, Transylvania



134 Government Circle

Suite 201

Jefferson, NC 28640

336-246-2885Image removed.

844-325-6823Image removed. Fax

Email: susan.roland@nc.usda.gov

Counties Served: Ashe, Watauga, Alleghany, Wilkes, Caldwell



195 Thomas Heights Rod

Franklin, NC 28734

828-524-3175Image removed.

844-325-6823Image removed. Fax

Email: pam.hysong@nc.usda.gov

Counties Served:  Macon, Haywood, Jackson, Cherokee, Clay, Graham, Swain



225 Valley River Avenue, Suite J

Murphy, NC 28906

828-837-2721Image removed.

844-325-6823Image removed. Fax

Email: pam.hysong@nc.usda.gov



11943 S. 226 Hwy Suite D

Spruce Pine, NC 28777

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844-325-6823Image removed. Fax

Email: rebecca.pinto@nc.usda.gov

Counties Served: Mitchell, Yancey, Madison, Avery



Warren C. Smith, Area Director

844 Wallace Grove Road

Shelby, NC 28150

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844-325-6850Image removed. Fax

Email: kevin.oliver@usda.gov

Counties Served: Cleveland, Gaston, McDowell, Polk, Rutherford, Mecklenburg, Burke, Catawba, Lincoln, Surry, Stokes, Forsyth, Davie, Alexander, Yadkin, Iredell



Forsyth County Agriculture Building

Room 102

1450 Fairchild Drive

Winston Salem, NC  27105

336-767-0720Image removed.

844-325-6850Image removed. Fax

Email: terry.goddard@nc.usda.gov

Counties Served: Forsyth, Alexander, Burke, Davie 



444 Bristol Drive

Statesville, NC  28677

704-872-5061Image removed.

844-325-6850Image removed. Fax

Counties Served: Iredell, Catawba, Lincoln

Email: judy.caldwell@usda.gov



220 Cooper Street

PO Box 66

Dobson, NC 27017

336-386-8751Image removed.

844-325-6850Image removed. Fax

Email: debbie.dickerson@nc.usda.gov

Counties Served: Surry, Yadkin, Stokes



Larry Sampson, Area Director

PO Box 7426

440-C Caton Road

Lumberton, NC 28360

910-739-3349Image removed.
844-325-6830Image removed. Fax


Counties Served: Robeson, Bladen, Cumberland, Scotland, Hoke, Columbus



Johnston County Agric Service Bldg

2736 Hwy 210

Smithfield, NC 27577

919-934-7156Image removed.

844-325-6830Image removed. Fax

Email: lacia.flakes@usda.gov

Counties Served: Johnston, Harnett, Sampson, Wake, Wilson



10 Referendum Drive

PO Box 108

Bolivia, NC  28422

910-253-4448Image removed.

844-325-6830Image removed. Fax

Email: paula.thrush@nc.usda.gov

Counties Served: Brunswick, New Hanover, Pender



Kelley Woodley-Area Director

847 Curry Drive, Suite 104

Asheboro, NC 27205

336-629-4449Image removed.

844-325-6822Image removed. Fax

Email: sha.stallings-morgan@usda.gov

Counties Served: Guilford, Randolph, Davidson, Rowan, Stanly, Cabarrus, Rockingham, Caswell, Alamance



2416 Tramway Road

Ernest & Ruby McSwain Extension Educ & Ag Center

Sanford, NC 27332

919-775-3407Image removed.

844-325-6822Image removed. Fax

Email: margarita.marble@nc.usda.gov

Counties Served: Lee, Chatham, Moore



123 Caroline Street

Rockingham, NC  28379

910-895-3950Image removed.

844-325-6822Image removed. Fax

Email: pamela.edwards@nc.usda.gov

Counties Served: Richmond, Montgomery, Anson, Union



853 S. Beckford Drive, Suite A

Henderson, NC 27536

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844-325-6826Image removed. Fax

Email: kim.hunt@usda.gov

Counties Served: Vance, Granville, Franklin, Warren, Orange, Durham, Person, Nash, Northampton



County Office Building

305 W. Tryon Street

PO Box 8

Winton, NC 27986

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844-325-6826Image removed. Fax

Email: travis.lassiter@nc.usda.gov

Counties Served: Hertford, Gates, Chowan, Pasquotank, Perquimans, Camden, Currituck, Bertie



Halifax County Agriculture Complex

359 Ferrell Lane

Box 7

Halifax, NC 27839

252-583-7171Image removed.

844-325-6826Image removed. Fax

Email: pamela.richardson@usda.gov

Counties Served: Halifax



Aaron Gaskins, Area Director

2044-C Hwy 11/55 South

PO Box 6189

Kinston, NC 28501-0189

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844-325-6827Image removed. Fax

Email: stephanie.hardison@nc.usda.gov

Counties Served: Lenoir, Jones, Craven, Pamlico, Onslow, Carteret, Wayne, Greene, Duplin



Pitt County Office Complex

403 Government Circle, Suite 3

Greenville, NC 27834


844-325-6827Image removed. Fax

Email: richard.hines@usda.gov

Counties Served: Pitt, Martin, Washington, Tyrrell, Dare, Beaufort, Hyde, Edgecombe