Section 502 Direct Loan
About the Program
Habitat Iowa provides packaging services for Section 502 Direct Loans offered through USDA Rural Development. This program allows more families to obtain affordable housing in eligible rural areas (generally having a population less than 35,000). Applicants must have an adjusted income at or below the area low-income limit and be willing and able to repay debt. Funds may be used to purchase homes and can also be used to build, repair, renovate or locate a home or to purchase and prepare housing sites. Interest rates are fixed and based on current market rates with payment assistance available for those who need it. While applicants are not required to work with a loan packager, Habitat Iowa will act as an advocate and go-between for the applicant and USDA; we will make sure applicant paperwork is properly completed to shorten the time it takes for USDA to make a loan decision. Applications are taken year-round. Habitat Iowa will charge a $350 service fee at time of closing.
Who to contact
Contact our Christine Hall at 515-266-6886