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USDA Section 502 Guaranteed Loan Program

Low to Moderate Income (LMI) First Time Homebuyers

Type Of Program

Deferred Second Mortgage

Program distribution

Program Originator

United States Department of Agriculture





Interest Rate

Loan Term

All Over US

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!

Household Income Restrictions

AMI Limit


Credit Requirement

Max Debt To Income

Employer Participation Required

Must Contribute Amount

Requires Inspection

Must Earn Counseling Certificate

Eligibility Limitations

Cash Sale Permitted

Cosigner Permitted

Owner Financing Permitted

Must be Primary Residence

Program Provider's Contact Name

Program Provider's Address

Program Provider's Phone

Program Provider's Email

Home Buyer Obligations