Single Family Housing Direct Home Loans in Indiana

PROGRAM STATUS: Open


What does this program do? 
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.

Who may apply for this program?
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.

Applicants must:

  • 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 meet
  • Agree to occupy the property as your primary residence
  • Have the legal capacity to incur a loan obligation
  • Meet citizenship or eligible noncitizen requirements
  • Not be suspended or debarred from participation in federal programs

Properties financed with direct loan funds must:

  • Generally be 2,000 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.

Applicants must meet income eligibility for a direct loan.  Please select your state from the dropdown menu above.

What is an eligible area?
Generally, rural areas with a population less than 35,000 are eligible.  Visit the USDA Income and Property Eligibility website for complete details.

How may funds be used?
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.

How much may I borrow?

Using the Single Family Housing Direct Eligibility Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying.  The tool will provide a preliminary eligibility determination after a potential applicant enters information on their general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance.  Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development (RD) regardless of the eligibility assessment results.  Upon receipt of a complete application, RD will determine the applicant’s eligibility using verified information and the applicant’s maximum loan amount based on their repayment ability and the area loan limit for the county in which the property is located. 

What is the interest rate and payback period?

  • Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
  • Interest rate when modified by payment assistance, can be as low as 1%
  • Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term

How much down payment is required?
No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets.

Is there a deadline to apply?
Applications for this program are accepted through your local RD office year round.

How long does an application take?
Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package.

What governs this program?

Why does USDA Rural Development do this?
USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.

NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

NOTE:  Please select your state using the "Select your location" menu above.  By doing so, any state specific forms and resources will be shown above this note. Please visit the Eligibility Site to find out if your income is within the direct loan limits.  Also, the home to be built or purchased must be located in an eligible rural area.

Applicant Resources:

Borrower Resources:

Training Webinars and Handouts:

Certified Loan Application Packager Resources:

Packagers are encouraged to routinely visit the Direct Loan Application Packagers page for information and resources specific to packaging single-family housing direct loans.

Interest Rates

Effective August 1, 2020 the current interest rate for Single Family Housing Direct Home Loans is 2.50% for low and very low-income borrowers.

There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.

There are currently no events scheduled.

Vince Maloney Single Family Housing Programs Director (317) 295-5774

Indiana State Office
5975 Lakeside Boulevard, Indianapolis, Indiana 46278-1996
Call us at 317-290-3100 TDD# 317-295-5799


Vince Maloney
Single-Family Housing Programs Director
vincent.maloney@usda.gov
317-295-5774

Mark Zukunft
SFH Specialist-Direct
mark.zukunft@usda.gov
317-295-5776

Dawn Smallwood
SFH Technician-Direct
dawn.smallwood@usda.gov
317-295-5789


Columbia City Area Office
788 W. Connexion Way, Suite E, Columbia City, IN 46725-1047
Call us at 260-244-6266 EXT #4


Liz Stanley
SFH Specialist-Direct
liz.stanley@usda.gov
260-244-6266 Ext: 121

Dawn Alford
SFH Technician-Direct
dawn.alford@usda.gov
269-244-6266 Ext: 113

Adams, Allen, DeKalb, Huntington, LaGrange, Noble, Steuben, Wabash, Wells, and Whitley counties.


North Vernon Area Office
2600 Highway 7 North, North Vernon, IN 47265
Call us at 812-346-3411 EXT #4


Cindy Baker
SFH Specialist-Direct
cindy.baker@usda.gov
812-953-4175

Cathie Stratton
SFH Technician-Direct
catherine.stratton@usda.gov
812-953-4174

Bartholomew, Brown, Clark, Dearborn, Decatur, Floyd, Franklin, Jackson, Jefferson, Jennings, Johnson, Lawrence, Morgan, Ohio, Ripley, Rush, Scott, Shelby, and Switzerland counties.


Muncie Area Office
3641 N Briarwood Lane, Muncie, IN 47304
Call us at 765-747-5531 EXT #4


Patrick O’Sullivan
SFH Technician & Administrative Assistant
patrick.osullivan@usda.gov
765-216-4072

Blackford, Delaware, Fayette, Grant, Hamilton, Hancock, Henry, Jay, Madison, Randolph, Tipton, Union, and Wayne counties.


Crawfordsville Area Office
2032 Lebanon Road, Crawfordsville, IN 47933-2143
Call us at 765-362-0405 EXT #4


Phyllis Crumrin
SFH Specialist-Direct
phyllis.crumrin@usda.gov
765-362-0405 Ext: 111

Linda Bowman
SFH Specialist-Direct
linda.bowman@usda.gov
765-362-0405 Ext: 123

Heather Sullivan
SFH Technician-Direct
heather.sullivan@usda.gov
765-362-0405 Ext: 109

Clay, Boone, Fountain, Hendricks, Montgomery, Owen, Parke, Putnam, Tippecanoe, Vermillion, Vigo, and Warren counties.

Jasper Area Office
1484 Executive Blvd, Jasper, IN 47546-9300
Call us at 812-482-1171 EXT #4


Terri Weyer
SFH Southern Team Lead
terri.weyer@usda.gov
812-817-3441

Millie Serrano
SFH Specialist-Direct
milagro.serrano@usda.gov
812-817-3455

Joseph Rapp'e
SFH Technician-Direct
joseph.rappe@usda.gov
812-817-3452

Crawford, Daviess, Dubois, Gibson, Greene, Harrison, Knox, Martin, Monroe, Orange, Perry, Pike, Posey, Spencer, Sullivan, Vanderburgh, Warrick, and Washington counties.

Knox Area Office
1410 South Heaton St. Knox, IN 46534-2314
Call us at 574-772-3066 EXT #4


Steven Ballard
SFH Northern Team Lead/Office Contact
steven.ballard@usda.gov
574-249-7011

Patrick Allen
SFH Specialist-Direct
patrick.allen@usda.gov
574-249-7010

Benton, Carroll, Cass, Clinton, Elkhart, Fulton, Howard, Jasper, Kosciusko, LaPorte, Lake, Marshall, Miami, Morgan, Newton, Porter, Pulaski, St. Joseph, Starke, and White counties.