Affordable Housing: USDA Rural Loan Program
Ecovillage, Cooperative Housing, Intentional Community in North Central Texas

The design of ecovillages in the Dallas-Fort Worth metro area is happening now. Speak out about what you want. Share your ideas about an ecovillage here.

Directory for Ecovillages, Ecohousing

Home

The USDA Rural Loan Program

Most small town areas of Hunt and Kaufman Counties, for example, qualify except for the homes in and surrounding Terrell and Greenville.  

Rural County Single Family Homes

Summary of Annual Household Income

One Person 

Section 502 Guaranteed Rural Housing Loan Program

Maximum Adjusted Household Income for Selected State and County : $78,550.00

Section 502 Direct Rural Housing Loan Program

Maximum Adjusted Household Income for Selected State and County : $38,250.00

Two Persons

Section 502 Guaranteed Rural Housing Loan Program

Maximum Adjusted Household Income for Selected State and County : $78,550.00

Section 502 Direct Rural Housing Loan Program

Maximum Adjusted Household Income for Selected State and County : $43,700.00

http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do

Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.

Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. .

Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.

Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.

Basic Instruction: 7 CFR Part 3550 and HB-1-3550 


Rural Housing Guaranteed Loans Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include: 

  •  Any State housing agency; 
  •  HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities; 
  •  the U.S. Veterans Administration as a qualified mortgagee; 
  •  Fannie Mae for participation in family mortgage loans; 
  •  Freddie Mac for participation in family mortgage loans; 

OR

  • Any FCS (Farm Credit System) institution with direct lending authority;  
  • Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

Basic Instruction:7 CFR Part 1980.

Dallas, TX HUD Metro FMR Area
1-4 people 5-8 people
RHS LOW INCOME 54650 72150
RHS MOD.INC-GUAR.LOAN 78550 103700

Questions? Please come to our next introductory meeting. In the meantime, call metro 972 251-1532 or 817 545-0140 for answers. 

Next Ecovillage Meetings

General information about meetings here and here

Schedule of Learning Events and Meetings

Please call 972 251-1532 or 817 545-0140 for locations.

Please fill out the short survey here for an invitation to speaker/special meetings. Thank you.

Ecovillage Forming 
Energy Audits   
Green Building 
Green Remodeling 
Green Consulting  
Rainwater Harvesting  
Renewable Energy in DFW

Eco-Village Index
A movement back to community?
DFW Net Mall Homepage

Scheduled Meetings are normally held in Rockwall and Hunt Counties, occasionally in Dallas County

Ecovillage forming in Hunt County
Ecovillage
 General Information
Energy Audits   
Green Building 
Green Remodeling 
Green Consulting  
Rainwater Harvesting  
Renewable Energy in DFW

Contact here.
Copyright © 2005-2011 DFW Ecovillage. All rights reserved.