The Rural Development - Direct Homeownership Loan Program

The Illinois Housing Development Authority’s involvement in this program is strictly advisory.

The Rural Development – Direct Homeownership Loan Program provides supplemental funding to the U.S. Department of Agriculture’s (USDA) preexisting Direct Homeownership Loan Program.

Rural Housing Direct Loans, also sometimes referred to as Section 502 direct loans, are government-funded loans that are available for low- and very low-income households to obtain homeownership. They are used to help low-income homebuyers purchase homes in rural areas. Interest rates are based on the household's adjusted income. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites.

PLEASE NOTE: The Rural Development – Direct Homeownership Loan Program is administered by the U.S. Department of Agriculture (USDA). See this LINK for more program details, including income eligibility levels and loan terms.