502 Appalachian Program
Welcome to the 502 Program
In early 2010, officials at the U.S. Department of Agriculture (USDA) approved a special set aside of $25 million in mortgage funds for low-income homebuyers in Central Appalachia through the Federation of Appalachian Housing Enterprises (FAHE) and its affiliates.
Known as the 502 Demonstration, it was the first partnership of its kind nationwide, wherein nonprofit lenders were given unprecedented access to fast-track the deployment of federal funds. Loans originated through this pilot program featured payment assistance and interest rates as low as 1%, and for qualified borrowers, 100% financing and alternative credit analysis were also available.
On Sept. 14, 2011, the USDA approved a renewal of the Memorandum of Understanding between USDA and FAHE, which allowed expansion of territory served to 4 new states: Michigan, Ohio, Indiana, and Alabama. In addition to the 4 new states FAHE will expand to all of Tennessee, Kentucky and Virginia. All of West Virginia, as in previous years, is also eligible.
Other Materials:
USDA Approval Letter - eHome America Online Training April 4, 2011
502 Demonstration Materials:
Complete Webinar Package (Tabs 1-7)
TAB 1 502 Direct Packaging Partnership Proposal
TAB 2 Charts
Pg. 1 - Targeting
Pg. 2 - Detail Flowchart
Pg. 3 - Key Contacts Flowchart
TAB 3 FAHE Members Map with Congressional Districts
TAB 4 FAHE Member Directory
TAB 5 FAHE Staff Contacts
A - Member Directory
TAB 6 State maps by County of Eligible Areas for Packaging Demonstration
A - Alabama
B - Indiana
C - Kentucky
D - Michigan
E - Ohio
F - Tennessee
G - Virginia
H - West Virginia
I - Master Map of all 502 Eligible Counties
TAB 7 RD 1944-12 Loan Packaging/Processing Checklist
TAB 8 Forms, Pages 1-53
Pg. 1 - USDA Income Calculator
Pg. 1.1 - Instructions for USDA Income Calculator
Pg. 2 - Maximum Loan Amt/Repayment Ratio Sheet
Pg. 3 - New Payment Assistance Method Calculation Spreadsheet - Field Use
Pg. 4 - Instructions for Data Entry Fields
Pg. 5-14 - RD 410-4 Uniform Residential Loan Application
Pg. 15-17 - RD 3550-1 Authorization to Release Information
Pg. 18-19 - RD 410-8 Applicant Reference Letter
Pg. 20-21 - RD 1944-60 Landlord’s Verification
Pg. 22-24 - RD 1944-61 Credit History Worksheet
Pg. 25-26 - RD 1910-5 Request for Verification of Employment
Pg. 27-28 - RD 3550-4 Employment and Asset Certification
Pg. 29-30 - RD 3550-2 Request for Verification of Gift/Gift Letter
Pg. 31-32 - RD 3550-34 Option to Purchase Real Property
Pg. 33-35 - RD 3550 Attachment 5-A Checklist for Initial Assessment of Existing Housing
Pg. 36-40 - RD 3550 Attachment 5-B Single Family Housing Site Checklist
Pg. 41 - Verification of Medical Expenses
Pg. 42 - Verification of Child/Dependent Care
Pg. 43 - Record of Oral Verification
Pg. 44 - Verification of Pensions and Annuities
Pg. 45 - Verification of Student Income Expenses
Pg. 46 - Verification of Social Security Benefits
Pg. 47 - Verification of Public Assistance
Pg. 48 - Verification of Unemployment Benefits
Pg. 49 - Verification of Business Expenses
Pg. 50 - Verification of Support Payments
Pg. 51 - Stage 1.A – Disclosure Letter
Upcoming 502 Courses
