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USDA Section 502 Direct

USDA Section 502 Direct is a direct loan from usda (0% down, payment-subsidized) from USDA Rural Development. Coverage: Very-low/low income rural buyers. Up to 100% toward a home purchase. First-time buyer status is not required. Income limit: Very-low (≤50% AMI) and Low (50-80% AMI).

Up to 100%
Listed as open as of May 2026

Coverage: Very-low/low income rural buyers.

First-time buyerNot required
Income limitVery-low (≤50% AMI) and Low (50-80% AMI)
Minimum credit score640
Maximum DTI29%
Homebuyer educationRequired
OccupationsVery-low/low income rural buyers
Property typesModest housing; rural-eligible
OccupancyOwner-occupied primary
Eligible loan productsUSDA Direct
Sales price capUSDA-set area limits
Repayment33-38 year term; payment subsidized to 24% of income (recapturable)
StackingLimited stacking
NotesPayment subsidy is recapturable on sale.
Source USDA Rural Development·official program page·Listed
Cal has not re-checked this listing recently. Confirm the current terms with the program administrator before relying on them.

Provider: USDA Rural Development · program details at the provider’s site.

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