Together, America Prospers

Certified Loan Application Packaging

Rural Home Loans 

(Direct Program)

Through the Single Family 

Housing (SFH) Direct Loan 

Program, USDA Rural Development 

offers affordable loans to eligible 

low- and very-low income 

applicants looking for modest 

housing in rural areas. You can 

learn more about eligible rural 

areas by visiting the USDA Income 

and Property Eligibility website at 

this link: https://go.usa.gov/xMXP2

What is a certified loan 

application packager?

Certified loan application packagers 

provide an optional service to help 

prospective rural homebuyers 

understand and complete the 

application process. While packagers 

do not work for or represent USDA, 

they can advise whether the SFH 

Direct Loan program is a good fit and 

help prepare the application. Generally, 

a fee is charged for this service. 

Rural Development supports 

partnerships with certified loan 

application packagers because they:

• Help boost the program in 

underserved areas, and in places 

without a Rural Development office

• Prescreen and counsel potential 

applicants on how to improve their 

ability to qualify for a home loan

• Ensure applications include all 

supporting documents necessary 

for the agency to properly evaluate 

and make sound decisions

• Offer applicants insight into Rural 

Development’s application process 

and regulations

Are loan application packagers 

certified by Rural Development?

Yes. Rural Development’s certified 

loan application packaging process 

requires reasonable experience, 

training, structure, and performance 

from the following parties involved in 

the certified packaging process: 

1. A Rural Development-certified loan 

application packager employed by 

a qualified employer

2. A qualified employer – for example, 

an affordable housing nonprofit, 

public agency, Tribal housing 

authority, or State Housing Finance 

Agency (SHFA)

3. A Rural Development-approved 

intermediary such as an affordable 

housing nonprofit, public agency, 

or SHFA approved by Rural 

Development to perform quality 

assurance reviews on packages 

prepared by certified packagers 

through their qualified employers

What experience is required?

To be a Rural Development-certified 

loan application packager, you must 

have at least one year of experience 

with affordable housing loan origination 

or affordable housing counseling.

To be a Rural Development-approved 

intermediary, an organization must have 

at least five years of verifiable experience 

with our SFH Direct programs, and then 

must apply for approval.

What training is required?

Certified loan application packagers 

and quality assurance staff working for 

an intermediary must complete a Rural 

Development-approved loan application 

packaging course and successfully 

pass the corresponding test.

This course reviews the SFH Direct Loan 

Program and its regulations, discusses 

the program’s application process in 

detail – including borrower and property 

eligibility and underwriting requirements 

– and reviews the roles and 

responsibilities of a certified packager, 

their qualified employer, intermediaries, 

and Rural Development staff.
Certified Loan Application Packaging

What steps should I take 

to become a certified loan 

application packager?

First, familiarize yourself with 

the certified packaging process 

by reading 7 CFR 3550.75 and 

Chapter 3 of Handbook-1-3550

(specifically Attachment 3-A). If you 

meet the experience requirements and 

work for a qualified employer, you can 

contact a Rural Development-approved 

intermediary in your state (available 

at this link: https://www.rd.usda.gov/

files/RD-SFH-IntermediaryMap.pdf) 

to discuss submitting applications 

through them.

How can my organization become 

a Rural Development-approved 

intermediary?

You must provide Rural Development 

with documentation to demonstrate 

you meet the conditions specified in 

7 CFR 3550.75(b)(3). See Chapter 

3 of Handbook-1-3550 (specifically 

Attachment 3-A) for a list of necessary 

documents. Visit our Direct Loan 

Application Packagers webpage 

(available at this link: https://www.

rd.usda.gov/programs-services/

services/direct-loan-applicationpackagers) for additional training 

and guidance.

How does working with an 

intermediary benefit certified 

loan packagers and their 

qualified employers?

There are many benefits to 

becoming a certified loan application 

packager and working with a Rural 

Development-approved intermediary. 

Among them:

• The quality assurance reviews

conducted by the intermediary

ensure that loan application

packages submitted to Rural

Development are more likely to be

determined eligible.

• The intermediary provides

supplemental training, technical

assistance, and support.

• The permissible packaging

fee is up to $2,000 and is split

between the intermediary and the

certified packager.

• When program funds are limited,

loan applications submitted

through an intermediary are given

funding priority.

• Partnering with people and

organizations that share similar

community and housing missionrelated goals can provide a sense

of professional and personal

satisfaction.

Can packagers and their 

employers choose not to work 

with an intermediary?

Under the certified packaging 

process, certified packagers and 

their qualified employers can work 

without an intermediary once 

they have submitted a sufficient 

number of applications through the 

intermediary and have exhibited an 

acceptable performance rating. This 

arrangement must be supported by 

the intermediary and approved by the 

associated Rural Development state 

director. It’s important to note that 

certified packagers working without an 

intermediary draw a lower permissible 

packaging fee and are not given 

funding priority.

Where can I learn more?

Additional information on the certified 

packaging process can be found 

on the Direct Loan Application 

Packagers website, which provides 

training, resources, and links to 

program regulations and handbooks, 

located at: https://www.rd.usda.gov/

programs-services/services/directloan-application-packagers.

As the leading federal agency for rural development prosperity, we work to help rural 

communities grow and prosper. 

For additional resources and information about our business, community or 

housing programs, contact our program specialists at 1-800-670-6553 or visit us 

online at rd.usda.gov.

USDA is an equal opportunity provider, employer, and lender.

September 2022