Program Search

Show All Programs

Number in household:
For first time buyers only?:
Annual Income:

Area(s) selected:
Program(s) selected:


USDA Direct Single Family Loan Program (Section 502)
US Dept of Agriculture (USDA)


U.S. Department of Agriculture Rural Development Office 1221 College Park Drive, Suite 200
Dover Delaware 19904


Program Overview

USDA Direct Single Family Loan Program (Section 502) is a loan available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. Nationwide, but only in rural areas with less than 10,000 population and some communities up to 20,000 population.

Property Eligibility Requirements

Generally, areas and communities with less than 10,000 population.

The sales price cannot exceed $ 417000.

Allowable property types: Single family, Duplex, Condo, Manufactured housing

Benefit Details

Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes.

Benefit: Low interest loan directly from the agency to a prospective homeowner who cannot afford regular mortgages but can afford to repay a low interest loan on a "modest" home. The interest rate depends on the income and size of the family and can be as low as 1 percent. There is no down payment required. To qualify, the family's income has to be below certain limits which are different depending on where you live.
Loan Term:33 years years
Homebuyer Counseling /
Education Required:
Owner Occupancy Required:Yes

Please note: Every attempt is made to reflect accurate and up to date information on housing programs displayed on this site. Some inaccuracies may exist. For verification contact a certified REALTOR member or a participating Lender.

For more information about this and other homebuyer programs please contact one of the following:

Workforce Housing Certified REALTOR®


Find a participating Lender