Rural Disaster Housing Assistance

General Loan Program Requirements
Rural Disaster Loans are available in counties designated under a Presidential Disaster Declaration. These funds are made available to the extent that funds are not provided by Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), or other agencies. Additionally, applicants must meet all eligibility requirements of Rural Development.

Loan Program Description
To assist qualified lower income rural families to meet emergency assistance needs resulting from natural disaster to buy, build, rehabilitate, or improve dwellings in rural areas. Funds are only available to the extent that funds are not provided by the Federal Emergency Management Agency (FEMA). For the purpose of administering these funds, natural disaster will only include those areas identified by a Presidential declaration

Direct loans may be used for construction, repair, or purchase of housing. Payment subsidy is available to eligible low and very low-income applicants. The term payment subsidy refers to either payment assistance or interest credit. A payment subsidy reduces the borrower's scheduled payment to an amount equal to what it would be if the note were amortized to as low as one percent. Payment subsidies are subject to recapture by the government when the borrower transfers title or ceases to occupy the property.

Applicants must be without adequate resources to obtain housing or related facilities. Applicants must be unable to secure the necessary credit from other sources at prevailing terms and conditions for residential financing.

Loan Terms
Direct are repaid over 33 years or 38 years for applicants whose adjusted annual income does not exceed 60 percent of the area median income, if necessary to show repayment ability. Payment assistance is granted on direct loans to reduce the installment to an "effective interest rate" as low as one percent, depending on adjusted family income. Payment assistance is subject to recapture by the government when the customer no longer resides in the dwelling. There is no funding provided for deferred mortgage authority or loans for deferred mortgage assumptions.

Loan Application Process
Direct Loans applicants can obtain and submit the following forms via the Internet at http://www.sc.egov.usda.gov :

Form RD 410-4, "Application for Rural Housing Assistance (Nonfarm Tract), Uniform Residential Loan Application"
Form RD 3550-1, "Authorization to Release Information" (copies for each adult household member);

Applicants must file applications from the date of declaration/designation and until supplemental appropriated funds are exhausted.

For further information about the application process or to request that the Agency mail an application or can obtain one in person at any Field Office.

Loan Program Contact Information
For more information about this program or to apply for assistance, contact your state's Rural Development field office.

Interested applicants should contact their local USDA Rural Development field office for more information. To obtain contact information for the field office nearest you.

Note: All applications for loans are handled at the local level. For help with an application, contact your nearest Rural Development office.

Loan Managing Agency
U.S. Department of Agriculture