Section 502 Direct Loan

Section 502 Direct Loan USDA-RD

We now offer USDA 502 Direct Loan packaging services for interested homebuyers*. We at Habitat understand that traditional loans can be unattainable for many low and very low-income families. The U.S. Department of Agriculture Rural Development (USDA) Single Family Direct Loan Program (502 direct loans) is an affordable alternative that provides subsidized mortgage loans for modest homes in rural areas. The applicants are generally first-time homebuyers.

This loan may be used to purchase homes and can also be used to build, repair, renovate or locate a home or to purchase and prepare housing sites. Interest rates are fixed and based on current market rates with payment assistance available for those who qualify. Habitat of Caroline works with the applicant and submits the documents directly to the USDA.

Try the Eligibility Tool

To apply contact our office at 804-633-1000 or by email at

*there are fees associated with applying for a 502 loan including a $1500 packaging fee