Housing advocates warn that recent changes to a federal rural lending program could sharply limit homeownership opportunities for low-income families in California communities.

The California Coalition for Rural Housing said revisions made Feb. 10 to the U.S. Department of Agriculture (USDA)’s Section 502 Direct Loan program reduce the maximum loan amount allowed under the program and eliminate certain flexibilities that previously helped borrowers qualify.

Under the new rules, the USDA revised its definition of a “modest home,” lowering the maximum loan amount tied to local Federal Housing Administration (FHA) limits. Previously, borrowers could take out up to 80% details ⇒

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