USDA Rural Development Direct 502 Single Family Housing Loan Program

Available in Benton, Parke, Putnam & Vermillion counties.

Direct 502 Single Family Home Loans are loans that are directly funded by the Government. These loans are available to low and very low income households only, to assist in obtaining homeownership.

 

Applicants may obtain financing to purchase:

1. An existing home

2. Build a new home

3. Purchase a new manufactured home

 

Along with being income eligible the family must:

1. Be able to afford a mortgage payment

2. Be credit worthy

3. Have a steady income

4. Attend homeownership classes either in person or online

5. Find a home in one of the counties we are serving

6. Be without adequate housing

 

Mortgage payments are based on the household's adjusted income. Payment subsidies are available for qualifying applicants. Applicants must be unable to obtain a conventional loan.

 

An initial credit check will be conducted free of charge when a completed Pre-Qualification Worksheet and Authorization of Release Information are received.

 

To be eligible for consideration, interested parties need to complete a Loan Pre-Qualification Worksheet, Authorization of Release Information form and verification of current household income (paystubs, SSI, other sources of income). Click on the links below to obtain the worksheet and information release form:

 

Loan Pre-Qualification Worksheet

Authorization to Release Information Form

Link to information about our Homeownership Education classes

 

Mail both completed forms and verification of income to:

Community Action Program, Inc. of Western Indiana

418 Washington Street, PO Box 188

Covington, IN 47932

Attn: Alice Young

 

For more information, call Alice Young at (765) 793-4881, Ext. 1209 or via email at ayoung@capwi.org