USDA Single Family Housing Direct Home Loan (Section 502 Direct)

USDA Single Family Housing Direct Home Loan (Section 502 Direct) is a first mortgage for homebuyers in Concord, NH (serving VT), Vermont, administered by USDA Rural Development (Vermont/New Hampshire State Office). The Section 502 Direct Loan Program helps low- and very-low-income applicants buy decent, safe, sanitary housing in eligible rural areas by providing payment assistance (subsidy) that can lower the effective interest rate to as little as 1%. No down payment typically required. Applicants apply directly through the USDA VT/NH RD office. No down payment typically required; payment-assistance subsidy can reduce effective interest rate to as low as 1%; up to 33-year term (38 yrs for very-low-income); 100% financing. Funding comes from USDA Rural Development (federal).

USDA Single Family Housing Direct Home Loan (Section 502 Direct) is a first mortgage and is repaid under the terms set by USDA Rural Development (Vermont/New Hampshire State Office). Repayment is triggered by Subsidy recapture: borrowers repay all or part of the payment subsidy received when title transfers or the borrower no longer occupies the dwelling. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

USDA Single Family Housing Direct Home Loan (Section 502 Direct) is open to homebuyers who will live in the home as their primary residence. 502 Direct is a subsidized first mortgage (closest enum). Recapture is subsidy recapture, not IRS MCC-style (recapture_tax=false). 4-person $ income limit varies by county - see linked VT income limits PDF.

USDA Single Family Housing Direct Home Loan (Section 502 Direct) sets its income limit as follows: Adjusted income at or below the applicable low-income limit for the area (see VT 502 Direct income limits PDF). Subsidy amount based on adjusted family income. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

USDA Single Family Housing Direct Home Loan (Section 502 Direct) can be used for single family and manufactured home (approved parks). New construction is eligible. Manufactured homes are eligible.

USDA Single Family Housing Direct Home Loan (Section 502 Direct) serves homebuyers purchasing in Concord, NH (serving VT), Vermont.

Applications for USDA Single Family Housing Direct Home Loan (Section 502 Direct) go through USDA Rural Development (Vermont/New Hampshire State Office), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.