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Building Homes

USDA Direct Mortgage Loans

Habitat for Humanity in Okaloosa County is partnering with the USDA Rural Development for the Direct Program home loans.


This program will allow you to participate in the Habitat Program even if your income is higher than the typical Habitat program income requirements. 

To request an appointment and discuss the qualifications for a USDA Direct Loan call the Habitat Office at 850-315-0025 ext 5. 


Habitat for Humanity will accept income ABOVE the standard maximum requirements for a Habitat home only for families that qualify for USDA Direct Home Loans.


Like the Habitat for Humanity program, the USDA home construction program will be a first come first served basis.  Habitat for Humanity programs are a priority. The wait time may be longer than usual.

Please call the Habitat office and set up an appointment to discuss the qualifications for a USDA Direct loan:

850-315-0025 ext 5.

We will need to look at your credit report. In order not to hurt your credit by multiple inquiries since USDA will pull a report, you can go to Credit Karma is not acceptable. 

Homes will be appraised to determine the sales price.


Your mortgage will be based on what you can afford.


The remaining equity will be held as a silent mortgage by Habitat for Humanity. This mortgage will be for 30 years at which time it will be cancelled. This second Habitat mortgage will be due in full if:

  • You are foreclosed on for any reason including violating Habitat policies

  • You refinance the USDA loan along with the Habitat second mortgage

  • You no longer live in the home. 

  • If your USDA mortgage is accelerated for any reason prior to the 30 year maturity date.



In lieu of a downpayment you will be required to do the standard Habitat requirements:

  • Need for housing

  • Partner with Habitat to complete 300 hours of sweat equity per adult in the household who will be part of the mortgage document

  • Be able to financially afford a mortgage offered by USDA with a market-based interest rate (minimum loan required by Habitat is $100,000 before any subsidy is applied.)  Debt to Income ratio will also play a part in your qualification amount 

  • Applicant must be unable to obtain a loan from other sources

  • Agree to occupy the home as their principal residence (can not rent the property to others)

  • Have the legal capacity to incur a loan obligation

  • Meet citizenship or eligible noncitizen requirements

  • Need a credit score of no less than 640 (if no credit is available there will be options)

  • Applicant must have a bank account that will verify activities and balances as part of your requirements in your document list. Online accounts such as Chime are not acceptable.


  • If no credit is available, the applicant may need to show other acceptable means such as third-party verifications, utilities, etc

  • Payments on any installment account, on a per account basis, where the amount of the delinquency exceeded one installment for more than 30 days within the last 12 months.

  • Payments on any revolving account, on a per account basis, which was delinquent for more than 30 days on two or more occasions within the last 12 months.

  • A foreclosure that has been completed within the last 36 months.

  • An outstanding IRS tax lien or any other outstanding tax liens with no satisfactory arrangement for payment

  • Two or more rent or mortgage payments paid 30 or more days late within the last 2 years.  If the applicant has experienced no other credit problems in the past 2 years, only 1 year of rent history will be evaluated.  This requirement may be waived if the program loan will reduce shelter costs significantly and contribute to improved repayment ability

  • Outstanding collection accounts with a record of irregular payments with no satisfactory arrangements for repayment, or collection accounts that were paid in full within the last 6 months, unless the applicant had been making regular payments previously

  • Non-agency debts written off within the last 36 months, unless the debt was paid in full at least 12 months ago.

  • Agency debts that were debt settled within the past 36 months or are being considered for debt settlement.

  • Delinquent on a federal debt

  • A court created or court affirmed obligation or judgement caused by nonpayment that is currently outstanding or has been outstanding within the last 12 months except:

    • A bankruptcy in which:

      • Debts were discharged more than 36 months prior to the date of application.

      • Where an applicant successfully completed a bankruptcy debt restructuring plan and has demonstrated a willingness to meet obligations when due for the 12 months prior to the date of application.

      • Judgment satisfied more than 12 months before the date of application.


  • You will need disclose if you and any household member over the age of 18 is employed, not employed and looking for employment or not employed and not looking for employment; 

  • Last 4 weeks of paycheck stubs;  

  • Last two years of tax returns with the W-2s or Form 1099 Misc. attached. If self-employed USDA will need a copy of your business tax returns. If your returns were filed electronically a copy of the signature page with the Self Select PIN and email confirmation that the return was accepted as evidence that it was submitted by an authorized E-file provider. If your returns were mailed in, make sure that the returns include the signature. If you can’t find those returns, W2s and the email then go to and print your tax transcripts and your income transcript. If you have not filed returns in the last two year, then a letter of explanation that states why you have not filed.

  • If received - Last 12 months of child support history and child support order

  • If received - Social Security, Disability, retirement - a copy of the award letter detailing the amount that you will be receiving on a monthly basis.  


  • Last two months of bank statements. All pages even if they are blank. This cannot be a transaction history. I will need the actual statements. If you have any deposits that are not from an income source that you have provided.


If you have Cash App/Square/Venmo/PayPal etc. deposits into your bank account, please provide a copy of those corresponding transaction histories in your package


  • A copy of your credit report.  You can go to This is to ensure that you meet the eligibility requirements prior to submission to USDA.

Equal Housing Opportunity

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, national origin, or any other protected status.

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