Together, America Prospers 

American Rescue Plan Act of 2021 

What does this 

program do? 

When signed into law, the 

American Rescue Plan Act 

(ARPA) allocated additional funds 

for USDA’s Single Family Housing 

Direct Loan program. However, as 

part of the Fiscal Responsibility 

Act of 2023 (PL 118-5, available 

at this link: https://tinyurl. 

com/39h2mcxa), ARPA funding 

was rescinded in June 2023. 

Although ARPA has ended, 

we will continue to accept 

applications to help existing 

borrowers who were approved 

for COVID-19-related payment 

moratoriums refnance their 

mortgages through June 30, 2023. 

We will also continue to accept 

applications for the Deferred 

Mortgage Payments program 

(DMP - which helps SFH-D very 

low-income self-help borrowers 

refnance loans closed in fscal 

year 2020 or later, regardless of 

moratorium status) through 

June 30, 2023. 

Who is eligible? 

Until June 30, 2023, we will accept 

applications from existing Single 

Family Housing Direct loan borrowers 

– including customers with home 

repair loans – to refnance loans which 

have been in an approved COVID-19 

moratorium. 

The adjusted household income for 

SFH-D loan borrowers must be at or 

below moderate income limits for the 

area. For Home Repair loan borrowers, 

the adjusted household income must 

be at or below the very-low income 

limit for the area. 

For Self-Help program borrowers 

with permanent loans that closed 

in FY 2020 or later – regardless of 

moratorium status – the adjusted 

household income must be at or 

below the low income limit for the 

area to be eligible to apply for a 

refnance. Additionally, for Self-Help 

program borrowers with loans that 

closed FY 2020 or later – regardless 

of moratorium status – the adjusted 

household income limit must be at or 

below the very-low income limit for the 

area to be eligible for the Deferred 

Mortgage Payment program. 

Income limits can be found at this link: 

https://tinyurl.com/mt7pmj (PDF) 

With the exception of delinquent 

federal debt, Single Family Housing 

Direct loan borrowers applying 

for refnancing are not subject to 

credit analysis, standard repayment 

ratio requirements, asset limits, or 

customary program standards related 

to the condition of the property. 

What terms are available? 

• For Single Family Housing Direct 

borrowers, a 10-, 25-, 30-, or 

33- year term is available. In limited 

circumstances, a 38-year term can 

be offered. 

• For Home Repair borrowers, a 

20-year term is available. 

What are the possible benefits to

refinancing?

For Single Family Direct Loan 

borrowers, a lower interest rate and 

term extension can help reduce 

the loan payment, making it more 

affordable. 

For Self-Help program borrowers, 

the Deferred Mortgage Payment 

program allows for up to 25 percent 

of a borrower’s monthly principal and 

interest payment at 1 percent to be 

deferred for up to 15 years. 

Is there any cost to the borrower?

Closing costs (fees associated with 

the real estate transaction) can be 

included in the loan. A new escrow 

account will be established in the 

refnance. If your existing loan does 

not have an escrow account, you will 

be responsible for the cost of getting a 

hazard insurance policy, which can be 

included in the loan. 

What can be included in the

refinance?

• Debt to USDA Rural Development. 

Under certain conditions, this 

includes Single Family Housing 

subsidy recapture. 
American Rescue Plan Act of 2021 

Additional information about 

subsidy recapture is available 

at this link: https://tinyurl.

com/3k2nvy7h (PDF) 

• In limited circumstances, liens 

not associated with debt to the 

Single Family Housing Direct loan 

program 

• In limited circumstances, repairs 

to correct major health and safety 

concerns in the home 

• Closing costs 

• A Rural Development-authorized 

loan packaging fee 

What do I need to do next?

• Existing Single Family Housing 

Direct loan borrowers can visit 

https://tinyurl.com/4avfcxfw to 

download an application package. 

You also can contact your local 

offce to request an application or 

get more information. A list of state 

offce locations is available at this 

link: https://tinyurl.com/5yuf24mx. 

• If you have questions about your 

existing loan – including its reamortization or subsidy recapture 

– contact the Customer Service 

Center at 1-800-414-1226. 

Where can I find more information?

• You will fnd the internal Rural 

Development implementation 

guidance associated with this 

program at this link: 

https://tinyurl.com/2d388a5b.

• Additional forms, resources, and 

program information are available 

at this link: 

https://tinyurl.com/2p922f2s

• Your local Rural Housing Program 

staff is always a great resource. 

Our state-based offce locations 

can be found at this link: 

https://tinyurl.com/5yuf24mx. 

NOTE: Because information is subject to change, always consult offcial program 

instructions or contact your local Rural Development offce for help. You will fnd 

additional resources, forms, and program information at https://rd.usda.gov. 

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

Last Updated June 2023