USDA Rural Development has announced $85 million in Section 502 Direct Loan funding remains for fiscal year 2010. Due to an increased level of funding as a result of the American Recovery and Reinvestment Act, USDA Rural Development in Texas had more than $130 million in funding available this year to help families achieve the dream of homeownership.

“USDA Rural Development is proud to assist rural Texans in meeting their housing needs, which is critical to the long-term sustainability of our communities,” said Paco Valentin, USDA Rural Development state director. “We have assisted thousands of Texans with purchasing a home.”

USDA Rural Development’s Direct Loan program provides 100 percent financing through low-interest, no-down-payment loans to help low- to very-low-income families and individuals purchase their own home.

Eligible homes must be located in a community of 10,000 persons or less, and in locations not closely associated with urban areas. Under certain circumstances loans can be made for homes in towns and cities with populations up to 25,000.

Funding can be used to purchase an existing home or to build a new home, within the loan guidelines.

For program eligibility or to complete an application, visit www.offices.sc.egov.usda.gov/ locator/app for the nearest USDA Rural Development office or call (254) 742-9770.