502 Loan Program
Agencies of the federal government of the United States has created loan program, specifically 502 loan program, to help the housing needs of low-income level families.
If one lives in a rural area then he must know the benefits of 502 loan program and the criteria for eligibility to help him get a safe and comfortable housing.
The Rural Development of the United States Department of Agriculture (USDA) has created a program which is known as 502 loan program designed for private market financing program in order to help low- and moderate-income families in rural areas to obtain safe and affordable housing for themselves. Rural areas are defined as an open country with population ranging from 10,000 or less. Those who live in town and cities where the population falls between the range of 10,000 to 50,000 is also considered to be eligible for this kind of financial assistance from the federal government.
The 502 loan program stems from the act passed by congress named the American Recovery and Reinvestment Act or Recovery Act. This act can stimulate the economy up to $10.5 billion of the guaranteed lending by the said act.
If you live in a rural area and need funding from this 502 loan program, then here are some basic information about the program which can help you get a clear idea how to avail of it.
Basic Benefits from the 502 Loan Program
Since this program is designed solely for the purpose of helping income-level families get an affordable and safe housing opportunity, the formulation of the program heavily invest on the affordability and comfort it can give to these families. One of the main benefits of 502 loan program is that there is no need for down payment if the funds are not available.
Second benefit of 502 loan program is that it can help low-income level families through payment assistance wherein payment can be reduced its effective interest rate thereby reducing monthly payment. Another benefit of the 502 program is that the note interest rate is fixed for the affordability of the family paying for the housing program. Even some closing costs may be included as part of the loan.
Eligibility for the 502 Loan Program
Given that 502 loan program is created to help low-income level families, USDA has set some criteria to whom this loan program can be given. The family applying for 502 loan program should have at least an adjusted income that does not exceed 80% of the median household adjusted in the county. The applicant must use home to be purchased as residence. The applicant also cannot own an adequate housing if he applies. The applicant also should have a good credit history. For more information regarding the full criteria for applicants for 502 loan program, one can visit for more information.
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