Single Family Rural Housing Programs

Direct Single Family Loans Section 502
The Direct 502 loan program provides eligible people with an opportunity to obtain adequate but modest, decent, safe and sanitary dwellings for applicants with incomes that do not exceed 80% of the median income for the area.  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 and pre-purchase homebuyer education is required.
Learn more about the Direct 502 Program
 

Guaranteed Rural Housing Loans
Guaranteed Single Family Housing loans are available to assist eligible households with incomes that do not exceed 115% of median income for the area. The program provides up to 100% financing for moderate-income applicants. A guarantee eliminates the need for a down payment and private mortgage insurance. Customers receive competitive 30-year loans with fixed interest rates. They work with local community lenders, using conventional lender's forms and receive quick service.
Learn more about the Illinois Guaranteed Housing Program
 

Home Improvement and Repair Loans and Grants
These loans and grants enable very low-income rural homeowners to remove health and safety hazards from their homes, to improve or modernize them and to make them accessible for people with disabilities. Grants are available for homeowners age 62 and older who cannot afford to repay a loan at a 1% interest rate. 
Learn more about the Repair Loans Program
 

Self-Help Housing Loans
Self-Help loans assist groups of four to twelve low-income families who work together to build new homes for each other by providing the funding for materials and the skilled labor they cannot furnish for themselves. The families agree to work together until all homes are finished. 
Learn more about the Self-Help Program
 

Housing Preservation Grants 
Housing Preservation Grants are available to sponsoring non-profit and public organizations to help very low- and low-income homeowners repair and rehabilitate their homes. Individual homeowners are not eligible to apply. The grants are competitive and are made available in areas where there is a concentration of need.
Learn more about the Housing Preservation Grants
 

The Illinois Housing Development Authority, http://www.ihda.org USDA Rural Development and the Partnership For Home Ownership Foundation, http://www.pfho.org have announced a new housing program for lower income borrowers. This  rural program will allow first time home buyers, or home buyers who have not owned a home in three years, to gain access to affordable single family homes at a below market fixed mortgage rate, minimum down payment and closing costs. Rural Development will guarantee these loans, eliminating the Private Mortgage Insurance requirement, allowing lower income home buyers access to a wider price range of homes.  This initiative serves all rural counties.

Local real estate agents and lenders, who have received  PFHO training, can assist potential buyers with registration forms. 

Access PFHO training schedules

For more information, contact a Rural Development Local Office near you.

USDA Rural Development is an equal opportunity lender. Applicants for Rural Development services are considered without regard to race, color, religion, sex, marital status, familial status, age, handicap, or national origin. Any multi-family or public use facilities financed with the help of Rural Development must be made available to the public with the same consideration.

    
Please send any comments or suggestions to: IL Webmaster
Revised May, 2008