USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in North Carolina don’t work in the same manner as USDA Guaranteed Loans in North Carolina. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.North Carolina USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

North Carolina USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $54,602 in North Carolina, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for that area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in NC are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in North Carolina for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in North Carolina?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in North Carolina besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in North Carolina, FHA Loan in North Carolina, or if you’re a veteran or qualified family member, VA Loans in North Carolina. You may also want to research if any helpful North Carolina down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in North Carolina. Search home loan limits for your area below.

North Carolina USDA Direct Loan Limits

Direct Loan Limit
Alamance $251,862
Alexander $251,862
Alleghany $251,862
Anson $251,862
Ashe $251,862
Avery $251,862
Beaufort $251,862
Bertie $251,862
Bladen $251,862
Brunswick $251,862
Buncombe $251,862
Burke $251,862
Cabarrus $253,920
Caldwell $251,862
Camden $581,220
Carteret $251,862
Caswell $251,862
Catawba $251,862
Chatham $322,920
Cherokee $251,862
Chowan $251,862
Clay $251,862
Cleveland $251,862
Columbus $251,862
Craven $251,862
Cumberland $251,862
Currituck $367,080
Dare $312,800
Davidson $251,862
Davie $251,862
Duplin $251,862
Durham $322,920
Edgecombe $251,862
Forsyth $251,862
Franklin $271,400
Gaston $253,920
Gates $367,080
Graham $251,862
Granville $251,862
Greene $251,862
Guilford $251,862
Halifax $251,862
Harnett $251,862
Haywood $251,862
Henderson $251,862
Hertford $251,862
Hoke $251,862
Hyde $386,400
Iredell $253,920
Jackson $251,862
Johnston $271,400
Jones $251,862
Lee $251,862
Lenoir $251,862
Lincoln $253,920
Macon $251,862
Madison $251,862
Martin $251,862
McDowell $251,862
Mecklenburg $253,920
Mitchell $251,862
Montgomery $251,862
Moore $251,862
Nash $251,862
New Hanover $251,862
Northampton $251,862
Onslow $251,862
Orange $322,920
Pamlico $251,862
Pasquotank $581,220
Pender $251,862
Perquimans $581,220
Person $322,920
Pitt $251,862
Polk $251,862
Randolph $251,862
Richmond $251,862
Robeson $251,862
Rockingham $251,862
Rowan $253,920
Rutherford $251,862
Sampson $251,862
Scotland $251,862
Stanly $251,862
Stokes $251,862
Surry $251,862
Swain $251,862
Transylvania $251,862
Tyrrell $312,800
Union $253,920
Vance $251,862
Wake $271,400
Warren $251,862
Washington $251,862
Watauga $251,862
Wayne $251,862
Wilkes $251,862
Wilson $251,862
Yadkin $251,862
Yancey $251,862

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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