Housing assistance available to residents of rural America through the U.S. Department of Agriculture's rural development program include mortgage subsidies, home loan guarantees, assistance with home repairs and rent payment assistance for older, disabled and low-income adults and families, notes the USDA. Assistance is based on income and property eligibility.
The USDA's Single Family Housing, or Section 502, Direct Loan Program is targeted for the low- and very low-income who are legally able to secure a loan, but cannot secure one within their ability to pay, explains the USDA. Home purchase, renovation repair, site preparation and construction are eligible for funding under this program. The recipient of this mortgage subsidy is responsible for paying back all or part of the loan within 33 to 38 years, depending on income, at an interest rate of not less than 1 percent.
The USDA's guaranteed loan program, also for single family housing, is available to low- and moderate-income households and covers purchase, construction, rehabilitation, improvement or relocation of a dwelling in an eligible location, according to the USDA. The program provides approved lenders a 90 percent loan note guarantee. The rural rental assistance or farm labor housing program provides payments to USDA-financed owners of multi-family dwellings to assist their low-income tenants in the payment of their rent. The owner's nonprofit or limited profit status is a project requirement.