As stated in the Section 502 Direct Loan Program, of the USDA-RD website 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.
MIDB offers two different 502 Direct Loans through USDA Rural Housing. 502 Direct and Self-Help 502, listed below are the differences between the two. The two programs are funded by the USDA Rural Development though Marshall Island Development Bank.
1. 502 Direct loan housing project uses a license contractor to construct the house for a period of 3-6 months. 100% of the project labor is handled by the contractor thus resulting in a higher cost project.
2. Self-Help 502 , a family and group effort for the project to be successful. This project has labor cost but does not cover all the scope of work for the project. The family and group effort takes about 60% of the work, labor is 40%.
Requirements:
4 recent check stubs to determine their eligibilty, if they range within the 41% ratio
Land lease agreements and mortgage lease agreements.
Employment must be 2 years
Valid ID cards and social security cards.
Number of dependents
Credit worthiness.
How to Apply:
Please visit us at the MIDB building 2nd floor Rm.# 207 or call 625-3224 ask for Chochi Lokboj or Jimmy Kamram. They will be able to answer your questions and provide you with the necessary documents or fill out the contact form at the Contact page addressing Chochi or Jimmy. .
