Single Family Housing Guaranteed Loan Program

Application Window:

Open

Program Application Period:

Applications are accepted for processing from approved lenders on an ongoing basis from October 1 - September 30.

Good to Know:

To begin, contact an approved lender (see contact tab below) to review the requirements for completing an application.

Fact Sheet

Overview

To Apply

Other Requirements

Contact

Events

Notices

What does this program do? 

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!

Who may apply for this program?
Applicants must:

  • Meet income-eligibility (cannot exceed 115% of median household income)

  • Agree to personally occupy the dwelling as their primary residence

  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien

What is an eligible rural area?
Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. 

Why does Rural Development do this?

This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.