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Single-Family Housing Guaranteed Loan Program

Open Date:

Continuous

Close Date:

Continuous

Eligible Recipients:

  • General Public
  • Private Sector

Program Purpose:

Other Infrastructure

Reserved for Energy
Communities?

No

Upcoming Milestones:

Funded by:

U.S. Department of Agriculture

Overview

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.

Funding Details

Funding Source:
Funding Type:
Loan Guarantee
Total Amount Available:
$0
Limit per Applicant:
No limit stated
Estimated Awards:
Not stated

Applicant Guidance

Contact Information

Interested applicants can apply for a Section 502 Guaranteed Loan through USDA Rural Development’s network of approved lenders. These approved lenders are also your point of contact for any questions or scenarios you wish to have reviewed for possible eligibility.

This list of active lenders is searchable by state and every effort is made by the SFHGLP team to keep this up to date.

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