Pathstone - USDA Single Family Housing Direct Home Loans - 502 Direct Loan - Chambersburg
PathStone Corporation - Chambersburg
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Data Provided By
United Way of Lancaster County
Description of Service
USDA Single Family Housing Direct Home Loans Program 101
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.
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.
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
Agree to occupy the property as your primary residence
Have the legal capacity to incur a loan obligation
Meet citizenship or eligible non-citizen requirements
Not be suspended or debarred from participation in federal programs
Properties financed with direct loan funds must:
Generally be 1,800 square feet or less
Not have market value in excess of the applicable area loan limit
Not have in-ground swimming pools
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.
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.
There is no initial consultation fee, however there is a fee for the credit report, application and a packagers
fee if you make application.
Individuals should call the office and schedule an appointment to learn about the service that is offered. Individuals can walk-in, but appointments are preferred.
Credit Check, Application are required.
Individuals and families who are looking to purchase a home.
Fees or Charges
Types of Fees
Individuals should contact the agency to learn of what fees or insurance are accepted.