Program Details

The USDA Section 502 Direct Loan Program provides affordable home financing options for eligible applicants in Alabama's rural communities. Administered by the U.S. Department of Agriculture (USDA), this program aims to improve the quality of life in rural areas by facilitating homeownership.

Eligibility Requirements

To qualify for the Section 502 Direct Loan Program in Alabama, applicants must:

  • Have an adjusted income at or below the low-income limit for the area.

  • Be a U.S. citizen, U.S. non-citizen national, or Qualified Alien.

  • Currently lack decent, safe, and sanitary housing.

  • Demonstrate the ability to repay the loan.

  • Have a satisfactory credit history.

  • Agree to occupy the property as their primary residence.

  • Be unable to obtain a loan from other sources on reasonable terms.

Program Benefits

  • Affordable Homeownership: Makes purchasing a home more accessible for low-income individuals.

  • No Private Mortgage Insurance (PMI): Reduces monthly payment obligations.

  • Closing Cost Assistance: Closing costs may be included in the loan amount.

  • Energy-Efficient Improvements: Funds can be used for energy-saving home upgrades.

How to Apply

  1. Determine Eligibility

    Use the USDA Eligibility Tool to check income and property eligibility.

  2. Prepare Documentation

    Gather proof of income, tax returns, identification, and other required documents.

  3. Contact Local USDA Office

    Reach out to your local USDA Rural Development office in Alabama for guidance.

  4. Complete Application

    Fill out the official USDA application forms.

  5. Loan Processing

    The USDA will review your application and verify eligibility.

  6. Loan Approval and Closing

    Upon approval, proceed with closing and home purchase.

💡 Tips

  • Check Income Limits Annually: They may change based on the area's median income.

  • Talk to a Housing Counselor: HUD-approved counselors can help guide you through the process.

  • Explore Additional USDA Assistance: Look into programs like Section 504 for home repairs.

  • Maintain Good Credit: A stronger credit history increases your approval chances.

*Details are in the Mortgage Calculator*

Your complete toolkit for buying your first home

Get personalized rates and find programs you qualify for. Calculate payments with ease and make your dream of homeownership a reality.

App Preview
Home Price$350,000
Down Payment$70,000 (20%)
Interest Rate6.5%
Monthly Payment$2,212
Payment calculators
First-time buyer programs
Itemize funds & assets
Down payment assistance

Download our app to access all features

Apple StorePlay Store

Licensed Mortgage Loan Officers

These mortgage professionals are licensed to operate in ALABAMA and can help you navigate the application process for this program. They can answer your questions about eligibility, required documentation, and help you find the best financing options.

Licensed Mortgage Loan Officers in alabama

Connect with experienced mortgage professionals who can guide you through the home buying process and help you find the right loan program.

No Mortgage Loan Officers Available

We couldn't find any mortgage loan officers available for alabama at this time. Please check back later or contact our support team for assistance.

Contact Support

Why work with a licensed mortgage loan officer?

Licensed mortgage loan officers have extensive knowledge of available programs, especially those for first-time homebuyers. They can help you navigate complex eligibility requirements and find the best financing options for your specific situation.

Disclaimer

Program availability, terms, and requirements may vary by lender and location. Additionally, programs are subject to change based on policy updates and market conditions. Always consult with a mortgage professional for the most current information and to determine eligibility for specific programs. The information provided on this website is for general informational purposes only and does not constitute financial, legal, or professional advice.