USDA Rural Development housing programs work to

improve the quality of life for rural Americans by ensuring that they have access to safe, well-built, affordable

homes. A house is more than a roof over our heads; it

is often the foundation upon which rests our ability to

live near good jobs and to gain access to good

schools and other public services. 

Homeownership builds economic stability and, over

the long term, creates equity to finance education,

business startups and retirement. USDA thus not only

helps rural people acquire homes, it helps build better

lives and communities.

The direct and indirect impacts of housing development and rehabilitation reverberate throughout the

Nation. Residential construction and rehabilitation

stimulate various manufacturing and trade industries

and related professional services. Housing activity also

benefits the larger economy as wages are earned and

spent by those directly involved in housing development. 

Homeownership Loans

Rural Development's housing programs finance new

or improved housing for low- to moderate-income families and individuals who wish to live in rural areas or

rural cities and towns. The purpose is to provide

financing with no downpayment and at favorable rates

and terms. These loans are for the purchase, construction, rehabilitation, or relocation of a dwelling and

related facilities.

Two types of homeownership loans are offered: guaranteed and direct loans. Under the direct loan program, individuals or families receive a loan directly

from USDA. Payments are based on income, and you

must be unable to obtain a homeownership loan from

a bank or other conventional sources.

Guaranteed loans are available to qualifying applicants

whose income is too high to qualify for a direct housing

loan. These are loans made by other lenders, such as

banks or credit unions, and are guaranteed by Rural

Development.

Self-Help Housing

Many rural families have achieved the American dream

of owning their own homes through USDA's Mutual

Self-Help Housing program.

Self-Help Housing loans help groups of 6 to 10 lowincome families build their own homes by providing

materials and the skilled labor they cannot furnish

themselves. The families must agree to work together

until all homes are finished.

Self-Help works in combination with a grant program to

nonprofit organizations and the direct single family

lending program, although other home financing

sources can be used. The nonprofits help families build

their houses by providing technical assistance.

Rural Rental Housing Loans

Apartment living is often an alternative for people who

cannot afford the purchase price and maintenance

costs of their own individual house. Rural Rental

Housing loans are made to finance building construction and site development of multi-family living quarters

for people with low, very low, and moderate incomes.

Some units are reserved for people aged 62 and over.

Loans can be made in this program to construct housing that will be operated in cooperative form, but loan

funds may not be used to finance individual units within

the project.

Housing Programs

Rural Housing and Community Programs
Home Improvement Loans and

Grants

Home Improvement and Repair Loans and Grants

enable low-income rural homeowners to remove health

and safety hazards from their homes and to make

homes accessible for people with disabilities.

Loans are available to lower income rural homeowners

to make substantial home repairs when other loan

options are not available.

For families and individuals with very low incomes,

Rural Development makes loans for repairs, to

improve or modernize a home, to make it safer or more

sanitary, or to remove health hazards. For seniors age

62 and older who cannot afford a loan, grant funds are

available for these repairs.

Site Loans

Rural Housing Site Loans buy adequate building sites

for development of a desirable community by private or

public nonprofit organizations.

Farm Labor Housing

Housing conditions for farm laborers lag far behind

those for other Americans. USDA Rural Development

serves as the only national source of construction

funds for dedicated farm labor housing through its

Farm Labor Housing loan and grant programs.

Farm Labor Housing Loans and Grants enable farmers, public or private nonprofit organizations, and units

of State and local governments to build, buy, or repair

farm labor housing in either dormitory or multifamily

apartment style. And they can help pay for important

facilities, such as on-site child-care centers.

Housing Preservation Grants

Housing Preservation grants are used to renovate

deteriorating homes and rental properties occupied by

families whose incomes fall into the low and very-low

categories. Nonprofits, local governments, and Native

American tribes can receive grants to repair these

properties and bring them up to code. 

These grants are almost always used in conjunction

with funds from other sources, including local and State

governments and grants from private businesses. This

means that taxpayer dollars go further and accomplish

more than would otherwise be possible.

Housing Subsidies

Housing Programs can help subsidize monthly mortgage and rental payments, limiting these costs to no

more than 30 percent of the adjusted monthly income

of the applicant.

These subsidies can be used for the direct home ownership, rural rental, and farm labor programs described

above.

Information and Applications

Detailed information and applications for financial

assistance are available through State and local offices

of USDA Rural Development.

Or you may contact the National Office at:

USDA Housing Programs

Stop 0780

1400 Independence Avenue, SW

Washington, D.C. 20250-0780

Telephone:(202) 720-5177 (single-family home programs)

(202) 720-3773 (multi-family home programs)

Fax: (202) 690-3025

website: http://www.rurdev.usda.gov/rhs/

PA 1556

Revised March 2001

Slightly revised February 2005

The U.S. Department of Agriculture (USDA) prohibits

discrimination in all its programs and activities on the

basis of race, color, national origin, sex, religion, age,

disability, political beliefs, sexual orientation, and marital

or family status. (Not all prohibited bases apply to all

programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact

USDA's TARGET Center at (202) 720-2600 (voice and

TDD).

To file a complaint of discrimination write USDA,

Director, Office of Civil Rights, Room 326-W, Whitten

Building, 14th and Independence Avenue, SW,

Washington, DC 20250-9410 or call (202) 720-5964

(voice and TDD). USDA is an equal opportunity

provider and employer."