USDA Rural Development (RD) Housing programs are among the best affordable housing programs in the country. The 502 Direct Program and 502 Guaranteed Program have provided decent, safe and sanitary housing in rural America to more than 400,000 families and individuals. In helping USDA achieve this mission and objective, partnerships with real estate professionals and lenders are important. Expanding and enhancing our partnerships with real estate licensees especially helps RD reach those borrowers in rural areas who are in extreme poverty and don’t have access to modern-day technologies. This course will provide an in-depth overview of our programs and focus on lending practices that meld well in RD programs.

USDA Single Family Housing Direct Program:  USDA is the lender and it underwrites, holds and services the loan.  There are loan limits and it is available only to very low and low income households.  100% Financing (no cash out of pocket); fixed interest rate (currently 3.25%); no credit score required but borrower must demonstrate stable and dependable income and have an acceptable credit history.

USDA Single Family Guaranteed Program:  Another affordable housing product that works through an approved lender with the USDA guaranteeing 90% of the maximum appraised value.  The program has qualifying income limits for low to moderate income.

The registration fee goes to RPAC for the third quarter.