💙🏡 HOMEOWNERSHIP 🏡💙

DIRECT USDA SECTION 502 HOUSING INFORMATION

ASA'S ANGELS IS COMMITTED TO HELPING YOU ACHIEVE YOUR DREAM OF HOMEOWNERSHIP!

Asa’s Angel is not a licensed loan officer, but the Asa’s Angels organization can act as a go between for you and the USDA Section 502 Agency, helping facilitate all details for the timeline of applying for a Direct USDA loan and steps through the closing process.  

Asa’s Angels has a Section 502 Loan Packager, and Team who are here to assist you every step of the way.

Our Loan Packager works directly with You and the Section 502 Loan Technicians to obtain your Certificate of Eligibility for this Program!   

USDA 502 DIRECT LOAN PACKAGING PROGRAM

Low- and very low-income rural residents need opportunities for home ownership, but traditional mortgage financing is too often out of reach.  The U.S. Department of Agriculture Rural Development (USDA RD) 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. Asa's Angels cannot Guarantee your loan Application Approval, or Funding by the Agency.

IS A DIRECT USDA SECTION 502 LOAN RIGHT FOR YOU?

WHO ITS FOR:

The USDA 502 Direct Loan is designed for homebuyers who have good credit but a limited income. With this program, which helps subsidize payments, you can get 100% financing for a USDA-eligible home in a rule area.

THE ADVANTAGES:

A Safe, Sanitary Home: You won’t have to worry that the home you’re living in is putting you in danger.

No Down Payment: 100% financing is available to most applicants that qualify. Additional terms apply.

Payment Assistance: You’ll get help paying your mortgage every month with funds that subsidize your loan.

Your Home. Your Way: Buy an existing home or have one built just the way you would like. It's up to you.

ELIGIBILITY AT A GLANCE:

Do you:

Have at least a 640 credit score, or three alternative credit tradelines?

Are without adequate housing but able to afford mortgage payments, including taxes and insurance?

Plan to occupy the home as your primary residence?

Meet the minimum income requirement and aim to purchase a home in a qualified area? You can check both by visiting the USDA website here.

HOW DOES THE PROGRAM WORK?:

The goal of the USDA 502 Direct Loan Program is to help those with limited income, buy safe, sound and sanitary housing in rural areas. Payment assistance is provided to the homebuyer and the amount of subsidy is determined by the family’s adjusted income. Its important to note that all or part of the subsidy is required to be repaid by the borrower when the home is sold, or the borrower no longer lives in the home.

ARE THERE ANY SPECIFIC REQUIREMENTS FOR THE HOME?

You can buy an existing single family home, build a home, relocate a home, or repair and renovate a home. The Home:

• Must be modest in size for the area its located in
• A market value that does not exceed the area’s loan limit
• Cannot be designed to produce income

IS A DOWNPAYMENT REQUIRED?

A down payment is not typically required, unless you have assets that go over the asset limit. In that case, you might be required to use a portion of those assets for a downpayment.

ASA’S ANGELS ASSISTANCE IN MAKING HOMEOWNERSHIP DREAMS COME TRUE!

Direct Section 502 Single Family Housing is a Loan through the Rural Housing Service (further known as the “Agency”). The Rural Housing Service is an Agency of the United States Department of Agriculture.

Asa’s Angels does not work for the Agency; we are an outside application packager. Asa’s Angels can assist you in applying for a loan through the Agency. Asa’s Angels cannot guarantee that your loan application will be approved or funded by the Agency.

Working with our organization provides you with the following benefits:

➡️ We will act as a go-between for you and the Agency, helping facilitate all details from the time of applying, through the closing process and closing.

➡️ We will make sure that your paperwork is in order, which should shorten the time it takes for the Agency to make an eligibility decision. All information collected will be maintained with the highest degree of confidentiality.

➡️ Your application will be considered a fourth funding priority when funds are insufficient to serve all program eligible applicants.

➡️ When a COE is issued by the Agency, we will help you gather the information the Agency will need on a property, make sure the property is eligible for this type of loan along with guide you through the required steps to be able to close on your new home.

HOW TO GET STARTED

If you are interested in exploring the benefits of the Section 502 Direct Loan Program, Our Dedicated Team is Here to Help Guide You Through the Process!

Please reach out to us via email, and we can begin to start working with you, the packager and the loan technician, to help determine your eligibility and take the first step towards homeownership!

The USDA Section 502 Program is Designed to help Empower Individuals and Families like yours, to achieve stability and security of Homeownership: and We are excited to help guide you through the process!

📩 Info.asasangels@gmail.com 

ESTIMATED TIMEFRAME ALERT

⌛Please keep in mind that this program requires long periods of time to navigate. Patience is essential for your success with the program. Applicants should expect delays, with the entire process that could take an estimate of 4-6 months. If this timeline is not suitable for you, you might want to explore other options.

WE LOOK FORWARD TO WORKING WITH YOU IN PREPARING AN APPLICATION FOR AN AGENCY DIRECT LOAN!

Asa’s Angels    📞 440.358.2848     📩  info.asasangels@gmail.com 

6656 N Ridge Rd Madison, OH 4405     a 501c3 NonProfit Agency: 45-5173923

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USDA RURAL DEVELOPMENT SINGLE FAMILY HOUSING DIRECT HOME LOANS

Click HERE for the USDA Direct Website!

WHAT DOES THIS PROGRAM DO? Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

WHO MAY APPLY FOR THIS PROGRAM? A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt.

Applicants must:

• Be without decent, safe and sanitary housing
• Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet
• Agree to occupy the property as your primary residence

• Have the legal capacity to incur a loan obligation

• Meet citizenship or eligible noncitizen requirements

• Not be suspended or debarred from participation in federal programs

Properties financed with direct loan funds must:

• Not have market value in excess of the applicable area loan limit
• Not be designed for income producing activities

Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.

Applicants must meet income eligibility for a direct loan.  Please select your state from the dropdown menu.

WHAT IS AN ELIGIBLE RURAL AREA?  Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.

HOW MAY FUNDS BE USED?  Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

HOW MUCH MAY I BORROW?  Using the Single Family Housing Direct Self- Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying.  The tool will provide a preliminary review after a potential applicant enters information on their general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance.  Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development (RD) regardless of the self-assessment results.  Upon receipt of a complete application, RD will determine the applicant’s eligibility using verified information and the applicant’s maximum loan amount based on their repayment ability and the area loan limit for the county in which the property is located.

WHAT IS THE INTEREST RATE AND PAYBACK PERIOD?

• Effective March 1, 2024, the current interest rate for Single Family Housing Direct home loans is 4.5% for low-income and very low-income borrowers.
• Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower

• Interest rate when modified by payment assistance, can be as low as 1%

• Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term

HOW MUCH DOWN PAYMENT IS REQUIRED?  No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets.

HOW LONG DOES AN APPLICATION TAKE?  Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.

WHY DOES USDA RURAL DEVELOPMENT DO THIS?  USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

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Asa’s Angels is not affiliated with the USDA or any government agency.