USDA Direct Home Loans in Rural Areas
A home loan made by USDA itself to low- and very-low-income buyers in eligible rural areas, with payment assistance that lowers the monthly payment based on income. Parts of Hanover qualify.
- Run by
- U.S. Department of Agriculture, Rural Development
- Serves
- Anywhere in Virginia
- Last checked
Who it's for
- Low- and very-low-income households, under USDA's income limit for the county
- Buyers without decent, safe housing who can't get a loan elsewhere on reasonable terms
- Homes in a USDA-eligible area. When we checked USDA's map, addresses in Ashland and Montpelier were eligible and Mechanicsville on Route 360 was not, so check the exact address.
What you get
- A loan made and serviced by USDA Rural Development, typically over 33 years
- Payment assistance that reduces your monthly payment based on your household's income, re-checked each year
How to start
- Check the exact address on USDA's eligibility map.
- Contact the USDA Rural Development office that serves the county to apply.
Good to know
- If you sell or move out, some or all of the payment assistance may have to be paid back (USDA calls this subsidy recapture).
- Direct loans take longer to close than most loans, so plan your contract timeline around it.
- Earning more? USDA's Guaranteed loan, through regular lenders, covers moderate incomes in the same eligible areas.
See what else may fit
The free 2-minute check shows which assistance programs may match a home or area you're considering.
Similar programs
- HOME of VA First-Time Homebuyer Program · Nonprofit, HUD-approved counseling agency
- City of Richmond Employee Homebuyer Assistance · Employer program
- SCDHC Down Payment Assistance and Homebuyer Counseling · Nonprofit, HUD-approved counseling agency
- Virginia DHCD HOMEownership Down Payment and Closing Cost Assistance · State department
Sources
Program rules, amounts and funding change often, and funds can run out. Confirm everything with U.S. Department of Agriculture, Rural Development before you rely on it. Martin Kurylowski and Real Broker, LLC are not affiliated with this program and are not lenders or administrators of any assistance program. You're free to work with any agent and any lender.