RHS Asks Partners to Help Identify Potential Homebuyers in Need of Assistance
Tuesday, September 01, 2015
The Rural Housing Service (RHS) has available funds in its Section 502 Direct Loan Program that must be used by September 30, 2015. Loan funds may be used by qualified applicants to purchase existing homes, to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
As of August 24, 2015, RHS has enough Section 502 Direct Loan dollars to fund approximately 1,940 additional home loans through September 30, 2015. RHS has initiated an “all-hands-on-deck” approach to this funding availability, and is now asking partners to help the agency find potential homeowners to invest in.
Direct loans are available to low income households in rural areas. There is no down payment requirement and the effective interest rate can be as low as one percent. These applicants demonstrate a willingness and ability to pay their debt obligations but cannot receive credit from traditional mortgage lending institutions.
If you are interested in learning more about the program and taking advantage of the funds available through the end of September 2015, contact your state office to determine an applicant’s eligibility.