Together, America Prospers

Rural Housing Site Loans

What does this 

program do?

Rural Housing site loans provide 

two types of loans to purchase 

and develop housing sites:

• Section 523 loans are used to 

acquire and develop sites only 

for housing to be constructed 

using the Self-Help method. 

You can learn more about the 

USDA Rural Development SelfHelp Housing Program at this 

link: https://go.usa.gov/xzHV4, 

and also in RD Instruction 

1944-I, available at this link: 

https://go.usa.gov/xzHVb (PDF).

• Section 524 loans are made 

to acquire and develop sites 

for low- or moderate-income 

families, with no restriction as 

to the method of construction.

Who can apply? 

• Section 523 loans: Private or public 

nonprofit organizations that will provide 

sites solely for self-help housing

• Section 524 loans: Private or public 

nonprofit organizations. The building 

site can be sold to low- or moderateincome families

• Nonprofits that have the legal authority 

to operate a revolving loan fund

• Nonprofits that have the financial, 

technical, and managerial capacity 

to comply with relevant federal and 

state laws and regulations

• Federally-recognized Tribes 

(information is available at this 

link: https://go.usa.gov/xzHPW)

What is an eligible area? 

Properties must be located in an 

eligible rural area. Visit the USDA 

Income and Property Eligibility 

website (available at this link: 

https://go.usa.gov/xzcdM) for details.

How can funds be used?

Site loans are made to provide 

financing for the purchase and 

development of housing sites for 

low- and moderate-income families.

What are the loan terms?

• 2-year loans

• Section 523 loans: 3 percent 

interest rate 

• Section 524 loans: below market 

rate (established and published 

monthly); fixed at closing

How do we get started?

Applications are accepted year-round. 

You can apply through your local RD 

office. A list is available at this link: 

https://go.usa.gov/xzHPf.

Who can answer questions?

Your local RD office can answer 

questions. See “How do we 

get started” for a link to our 

state-based offices.

What governs this program?

Standards: Site development standards 

and policies can be found in RD 

Instructions 1924-A (available at this 

link: https://go.usa.gov/xzHpR - PDF), 

and 1924-C (available at this link: 

https://go.usa.gov/xzHpV - PDF). 

Basic Instruction: Information can 

be found in RD Instruction 444.8 

(available at this link: https://go.usa.

gov/xzHpw - PDF), along with RD 

Instruction 1924-C, as listed above. 

NOTE: Program details can change 

over time. Before you start your 

application, please contact a housing 

site loan specialist in your local RD 

office to confirm you are using the 

most current information.

NOTE: Because citations and other information are subject to change, always 

consult the program instructions listed in the section above titled “What Governs 

This Program?” You can also contact your local office (information is available at 

this link: https://go.usa.gov/xzHPf) for help. You will find additional forms, resources, 

and program information at https://www.rd.usda.gov/. USDA is an equal opportunity 

provider, employer, and lender.

Last Updated May 2022