USDA Section 502 Direct Home Loan
Cost shareFree to qualifying landowners, from USDA Rural Development
Zero down, subsidised rate as low as 1 percent, for low and very low income buyers in eligible rural areas. Funds can build, repair or relocate a home, or buy and prepare a site including water and septic. A rule effective February 10, 2026 lowered the modest home cap from 80 to 60 percent of the local FHA Section 203(b) limit and added appraised value caps, which disqualifies more higher value rural homes.
Who qualifies Low and very low income buyers in eligible rural areas; test the parcel and income on the USDA eligibility map.
How to apply Check eligibility at eligibility.sc.egov.usda.gov, then apply through Rural Development.
Where it applies
- Everywhere in the United States
Run by
USDA Rural Development
Federal agency